In a pivotal decision for the Turkish financial sector, the Turkish Competition Authority has officially concluded its extensive investigation into global payment giants Mastercard and Visa. The probe, which began in late 2024, focused on potential anti-competitive behavior within both the card scheme and digital wallet markets. Rather than moving toward protracted litigation or immediate sanctions, the case reached a resolution through a formal commitments procedure. This legal path allowed both companies to propose a series of binding changes to their business operations in Türkiye to address the regulator’s concerns about market fairness.
The investigation centered on the immense influence these entities hold as the essential electronic networks connecting banks, businesses, and shoppers. As card payments have evolved over the last two decades to become the preferred method for consumers, the Competition Board identified several practices that were allegedly obstructing smaller competitors and non-bank financial actors. The regulator specifically found that the existing structures for discounts and incentives were creating barriers to entry, making it difficult for rival payment infrastructures to compete on a level playing field.
To resolve these issues in the scheme services market, Mastercard and Visa have committed to making their financial incentives more objective, proportionate, and transparent. A major highlight of the settlement involves the improvement of interchange commission rates for cross-border transactions. By streamlining these costs and making them more comprehensible to business partners, the new measures are expected to generate positive ripple effects throughout the Turkish banking system and contribute to overall social welfare by lowering the barriers for international commerce.
A portion of the investigation also scrutinized the digital wallet sector, specifically focusing on Mastercard’s Masterpass service. The Authority expressed concern that contractual terms and de facto relationships with merchants gave Masterpass an unfair advantage in visibility on checkout screens, potentially stifling the growth of independent wallet providers. Under the new commitments, Mastercard will adjust its product positioning and campaign terms to ensure that a variety of digital wallet services can be visible to consumers under fairer competitive conditions. This shift aims to foster a more diverse environment where e-commerce users can choose their preferred payment tools based on merit and convenience rather than pre-determined market dominance.
