Key Facts for Turkey
- Primary real-time rails: FAST (Instant and Continuous Transfer of Funds System).
- Typical settlement times: Transactions settle in approximately one second.
- Common limits: Per-transaction limits are 5,000 TL for P2P and 10,000 TL for business payments; daily aggregate limits vary by institution.
What “real-time payments” means in Turkey
In Turkey, real-time payments are actualized through the FAST system (Instant and Continuous Transfer of Funds), introduced in 2021. This infrastructure operates 24/7, allowing for immediate credit transfers in Turkish Lira. Its scope covers both person-to-person and merchant payments, often initiated using aliases like a phone number or email instead of a traditional IBAN. The legal framework is established by the Law on the Central Bank and Law No. 6493, which govern payment services and position FAST as a vital component of the national payment ecosystem.
The Central Bank of the Republic of Turkey (CBRT) is the sole regulator, owner, and operator of the core FAST system, managing settlement directly in central bank money. While there is no separate clearing house for core transactions, the Interbank Card Center (BKM) develops and runs value-added overlay services like QR code payments and proxy addressing. The system currently uses a proprietary XML-based messaging format with a structure similar to ISO 20022, with plans to fully adopt the global standard in the future.
Turkey’s hybrid public-private model and rapid adoption position its RTP system as a competitive and innovative force among its global peers.
Payment Rail Overview
FAST (Instant and Continuous Transfer of Funds System)
Launched in January 2021, FAST is Turkey's primary real-time payments infrastructure, operating 24/7 under the authority of the country's central bank. It facilitates immediate credit transfers in Turkish Lira for both P2P and merchant payments. The system allows payments to be sent using simple aliases, such as a phone number or email, which are linked to a recipient's bank account.
- 24/7 Availability: The system operates around the clock, every day of the year, allowing for payments outside of traditional banking hours.
- Real-Time Settlement: Transactions are settled in central bank money in approximately one second, providing immediate finality.
- Alias-Based Payments: Through the "Easy Addressing" (KOLAS) service, users can send funds using identifiers like a mobile number or email, removing the need for complex IBANs.
- Overlay Services: The core infrastructure supports value-added services developed by the Interbank Card Center (BKM), including QR code payments, Request-to-Pay, and escrow functions.
- Open Participation: The network is open to direct participation from both banks and licensed non-bank financial institutions, promoting competition.
Pros:
- Instantaneous, round-the-clock transaction processing.
- High user adoption, with millions of daily transactions.
- Simplified user experience through alias-based addressing.
- An extensible model that supports new financial products and services.
Cons:
- Transaction limits may be too low for high-value transfers.
- Currently restricted to domestic payments in Turkish Lira.
- The system's messaging format is not yet aligned with the global ISO 20022 standard.
- Other Minor Rails: Turkey’s payment ecosystem also includes legacy systems that are not fully real-time. The RPS (Retail Payment System), which operates only during business hours, and the BPS (Interbank Payment System), a high-value wholesale system, are two such examples from the pre-FAST era.
Limits, Fees, and SLAs
- Limits: Per-transaction caps are 5,000 TL for standard payments and 10,000 TL for business payments. Daily limits are not specified system-wide.
- R2P Fees: No special fees are charged for request-to-pay services. Standard transaction fees may apply, though some banks offer the service for free.
- Operating Hours: The FAST system and its overlay services, including request-to-pay, are available 24/7/365 with no cut-off times.
- Failures & Returns: Transactions that are not settled within 25 seconds are timed out. Financial institutions must notify customers of the final transaction status.
Compliance and Risk
KYC/KYB & AML
Payment service providers and crypto platforms are designated as obliged parties under Turkish law. They must implement comprehensive customer due diligence, including identity and address verification, and report suspicious transactions to the Financial Crimes Investigation Board (MASAK) to combat money laundering.
Data Residency & Privacy
Regulations govern information systems and data sharing for payment providers, with a focus on domestic infrastructure like the GEÇİT open banking gateway. While specific data residency rules are not detailed, this framework implies a strong preference for local data processing.
Fraud Controls
The CBRT mandates robust fraud controls through specific instructions and system-level tools like the Security Overlay Service (SIPER) for risk data sharing. A centralized Merchant Registration System and transaction monitoring are key components for preventing illicit activities across the payment ecosystem.
Recordkeeping & Audits
Payment institutions operate under CBRT oversight, which includes data management rules. For crypto providers, regulations are more explicit, mandating an eight-year retention period for all transaction records and requiring technical infrastructure audits by the national research council, TÜBİTAK.
Lightning Network Integration as a Solution
The Lightning Network is a second-layer protocol on Bitcoin that processes transactions off-chain for near-instant, low-cost payments. While domestic RTP rails excel within national borders, the Lightning Network offers a global, decentralized counterpart. It can act as a bridge, connecting regulated domestic systems to a worldwide payment network for international transfers. This creates a pathway for fiat currencies to interact with a global digital asset, expanding the reach of local payment infrastructures.
While both systems offer near-instant settlement, the Lightning Network often provides lower transaction costs, with fees measuring fractions of a cent. The most significant distinction is reach; where domestic rails are confined by national borders, the Lightning Network operates as a permissionless, global system. It facilitates immediate cross-border value transfer without intermediaries, connecting users and businesses worldwide through a single, interoperable protocol.
- Cross-Border Barriers: It bypasses the high fees, slow settlement times, and intermediary banks typical of international transfers, offering a direct, global payment channel.
- Permissioned Access: As a decentralized network, it operates without central authorities, allowing any individual or business to connect and transact without needing approval from a specific financial institution, a requirement for systems like FAST.
- Micropayment Viability: Its near-zero fee structure makes it economically practical for high-volume, low-value transactions, such as content tipping or machine-to-machine payments, that are often too costly for other systems.
Integrating this technology offers a forward-looking path to connect local economies with the emerging global digital marketplace.
B2B Enterprise Use Cases
- Supplier Payments – Pay international suppliers instantly by converting TRY to BTC and settling in their local currency.
Business value: Removes correspondent banking delays and high fees from global supply chains. - Merchant Settlement – Accept global customer payments via Lightning and receive immediate final settlement in TRY through a local partner.
Business value: Opens access to a worldwide customer base with instant, low-cost payment finality. - Treasury Optimization – Move funds between international subsidiaries 24/7, bypassing traditional banking hours and foreign exchange market closures.
Business value: Offers real-time global liquidity management, reducing capital held in transit. - Payroll for Global Teams – Disburse salaries to international remote workers and contractors instantly, avoiding slow and costly bank wires.
Business value: Improves worker satisfaction with prompt, low-fee cross-border compensation. - API Micropayments – Pay for API calls or data streams from global providers in real-time per-use, settling fractions of a cent.
Business value: Supports new pay-per-use business models for digital services without transaction minimums.
Cross-Border Transactions and Remittances to Turkey
Cross-border payments to Turkey face significant hurdles. Since the country is not part of SEPA, transactions rely on correspondent banking networks, which are often slow and costly. Reaching Turkey’s domestic rails requires complex rail bridging to connect systems like FAST with international networks. This process involves navigating intricate FX paths for currency conversion, adding friction. Fintech partnerships and currency swap agreements are forming new financial corridors, but fundamental interoperability challenges for real-time payments remain.
- Europe & UK: Digital wallets like Paycell support international money transfers from Europe and the UK, addressing the high demand for personal remittances from the Turkish diaspora.
- China: A "Digital Silk Road" initiative and banking partnerships, such as Isbank's integration with WeChat, are creating pathways for digital trade and cross-border commerce between the two nations.
- United Arab Emirates: A $4.9 billion currency swap agreement between the central banks of the UAE and Turkey aims to provide local currency liquidity, promoting more efficient settlement for commercial and financial transactions.
The Lightning Network offers a direct alternative. By using Bitcoin as a global settlement asset, it connects domestic payment systems for instant fiat-to-fiat transfers. This approach bypasses traditional banking intermediaries, dramatically reducing both transaction times and cross-border fees.
How Lightspark Makes Integration Easy
Lightspark helps fintechs, digital banks, wallets, and exchanges connect to the Lightning Network by abstracting away the complexities of node management. Our platform provides a complete solution, managing liquidity and optimizing payment routing for maximum reliability. We offer robust developer tooling and APIs for straightforward integration, allowing you to offer your customers sub-second settlement globally for cross-border transactions. By handling the underlying infrastructure and addressing critical compliance requirements, we make it simple to build on the world's most open payment protocol. To explore how you can expand your payment services, Talk to our team.
Sources and Further Reading
- https://fastpayments.worldbank.org/sites/default/files/2023-05/World%20Bank_FPS_FAST%20Turkey_Final.pdf: World Bank's FAST system analysis.
- https://www.lightspark.com/contact: Connect with the Lightspark team.
- https://www.lightspark.com/knowledge/how-the-lightning-network-is-transforming-bitcoin: How Lightning advances Bitcoin payments.
- https://www.lightspark.com/knowledge/is-crypto-legal-in-turkey: The legal status of crypto.
- https://www.lightspark.com/news/insights/what-are-lightning-payments: Defining instant, low-cost Lightning payments.
- https://www.reuters.com/world/middle-east/uae-turkey-cenbanks-sign-49-bln-currency-swap-deal-2025-10-02: Details on UAE-Turkey currency swap.
- https://www.thunes.com/insights/trends/why-turkiye-is-set-to-become-a-digital-payments-powerhouse/: Turkey's rise as payments leader.
- https://www.transfi.com/blog/turkeys-payment-rails-how-they-work---eft-fast-digital-wallet-growth: A look at Turkish payment rails.
- https://www.vakifkatilim.com.tr/en/for-me/payments-and-services/services/fast-instant-and-continuous-transfer-system-of-funds: A bank's FAST system guide.
- https://www.ziraatkatilim.com.tr/en/retail/payments/instant-transfer-fast: Guide to using FAST transfers.
