Turkish FinTech company, Sipay, is leading the way in payment processing services by offering a comprehensive platform for accessing multiple banks and minimizing the time and effort it takes to deal with various providers. In an interview with PYMNTS, Sipay’s founder and CEO, Nezih Sipahioglu, outlined how the company’s single-API virtual POS solution is transforming the payments landscape in Turkey by offering an easier way for retailers to process payments from their customers.
Closing the gap with a single-API virtual POS solution
According to Sipahioglu, one of the biggest challenges facing retailers in Turkey is the need to obtain point-of-sale (POS) systems from multiple banks across the country. This is a time-consuming and friction-filled process that can negatively impact their bottom-line growth. Sipay’s single-API virtual POS solution transforms the landscape by offering an easier way for retailers to process payments from their customers. By accessing multiple banks through a single platform, businesses can save time and focus on growing their operations.
White-Label Digital Wallet Solution for Retail Brands
In addition to its card processing payment gateway, Sipay also offers a white-label digital wallet solution that enables retail brands to access services from multiple banks in a single app. This platform marketplace allows businesses to apply for microcredit loans from various banks and access a range of other services, such as loyalty rewards and promotions. Sipahioglu explained that Sipay’s digital wallet solution has been in high demand due to the growing e-commerce market. Customers are searching for an open-loop payment solution that enables them to make payments at different locations from one centralized mobile wallet.
Processing nearly $200 million in monthly transactions
Sipay’s success in Turkey is evident from the fact that the company processes nearly $200 million in monthly transactions, with a 10% market share in the payments space. According to Sipahioglu, the company holds a Turkish e-money license, which has helped it establish a strong position in the market. However, Sipay is not content with this success and plans to expand its operations to other European markets, starting with the UK.
Expanding into the UK and other European markets
Sipahioglu sees the UK as a key market for Sipay, given its strong FinTech ecosystem and open banking initiatives. Sipay plans to leverage its open banking license to expand its operations to the UK, making it easier for businesses to access their platform and services. Sipahioglu also emphasized the need for greater collaboration with banks to offer new services to their customers. He acknowledged that banks in Turkey still view FinTechs as competitors, which has sometimes strained relations between the two sides. However, he emphasized that financial institutions need to recognize the value they stand to gain from partnering with FinTechs, as they are increasingly attracting customers to their platforms.
Maintaining a balance between merchant and consumer clients
Lastly, Sipahioglu highlighted the importance of maintaining a balance between Sipay’s merchant and consumer clients. He noted that Sipay’s B2C and B2B services, and white-label platform allow the company to maintain this balance. Even if the company has fewer clients on the consumer side, it can rely on its merchant business, and vice versa. This balance has been instrumental in the company’s success, providing a solid foundation on which it can grow its operations and expand into new markets.
In conclusion, Sipay’s single-API virtual POS solution and white-label digital wallet solution have transformed the payments landscape in Turkey, offering an easier way for businesses to access multiple services from various banks. The company’s success in Turkey, where it processes nearly $200 million in monthly transactions, has positioned it well to expand its operations to other European markets, starting with the UK. As FinTech continues to disrupt the traditional banking industry, Sipay’s success highlights the benefits of collaboration between banks and FinTechs as they work together to develop innovative solutions that meet the needs of today’s consumers.