Increase in Credit Card Usage Set to Grow in Street Markets of Turkey
Starting August 15, 2025, Turkey’s traditional open-air street markets (semt pazarları) will see a significant shift as vendors are required to have POS machines to accept card payments[2]. This move marks a departure from the previously dominant cash-only system, modernizing the shopping experience for both customers and vendors.
The decision to introduce POS machines aims to provide more flexible and convenient payment options, such as debit and credit cards, similar to regular shops[2]. For customers, this means easier, faster transactions without needing cash on hand, likely improving convenience and reducing checkout times. Vendors will benefit from potentially higher sales volumes, increased security, and better record-keeping.
Turkey's street markets, which number over 326,000 vendors, including 30,000 in Istanbul alone, have long relied on cash transactions[5]. However, with consumers increasingly preferring not to carry cash, and limited card payment options leading some to shop elsewhere, the move towards digital payments is a necessary step[3].
In fact, only 20% of market transactions in Turkey are currently made by card, but Şengün, a financial expert, predicts this could rise to 90% by year's end[3]. This shift is driven by vendors themselves due to sales drops in the past year[6].
The new card payment system will not result in any price difference or extra commission charged to customers[7]. Vendors who wish to offer card payments can obtain POS machines through agreements with banks[6]. This move is expected to help street market stallholders compete with supermarkets and shopping malls.
Each city, and even each neighborhood, has its own designated market days and unique product range[8]. These markets offer a wide variety of goods, including fresh fruit, vegetables, legumes, cheese, olives, fish, spices, clothing, and household items[9]. Prices in street markets are often lower than in supermarkets, and bargaining is a common tradition[10].
Ali Karaca, president of a street vendors federation, mentioned agreements with several banks for vendors to receive POS devices[1]. This move towards digital payments aligns with broader payments industry trends in Turkey and globally, where contactless and mobile payments are rapidly growing due to technological advancements and changing consumer expectations[1][4]. Turkey’s financial regulations have also been enhancing digital payment infrastructures and encouraging more electronic transactions for tax and economic transparency reasons[4].
In conclusion, the introduction of POS machines in Turkey’s street markets will accelerate digital payment adoption, enhance vendor operations through better transaction management, and provide customers with a smoother, more modern shopping experience.
- The shift towards POS machines in Turkey's street markets, such as those in Istanbul, is part of a broader trend in the financial industry, mirroring the growing popularity of digital and contactless payments worldwide, thanks to technological advancements and changing consumer behavior.
- As a result of this digital transformation, local businesses, like street market vendors, will not only welcome increased sales volumes due to improved payment methods but also gain benefits such as better security, record-keeping, and competition with larger establishments like supermarkets and shopping malls.
- As consumers increasingly move away from cash and opt for convenience, Turkey's street markets could see a significant change in lifestyle and general-news trends, with faster transactions and lower checkout times becoming the norm for both customers and vendors.
