1. Troy: Turkish National Payment Scheme
March 2017

2. Turkey at a glance 2.4 mio POS terminals GDP: $ 718 bio
Straddling the continents of Europe and Asia, young and dynamic population
50 Banks
12K branches
Asset size: $ 780 bio
211 K bankers
78 mio population
(49% under age 30)
#1 in Europe
2.4 mio POS terminals
#1 in Europe
117 mio debit
&
59 mio credit
cards
GDP: $ bio
18th largest economy of the world

3. Big market with only International Card Schemes
Main Drivers to Build a National Payment Scheme in Turkey
Domestic transactions dominates the Turkish card market
TRANSACTIONS # 97%
Cards
91%
transacTION Volume
97%
Big market with only International Card Schemes
This initiative will have various advantages
Limitations for tailor made solutions
Absence of local touch
Switch and Processing is already done by BKM
Lagging to meet stakeholders’ need
Economic benefit for stakeholders
Local needs first priority
Time to market
- Reducing fees via a cost sensitive model
- Development of products and service aligned with the needs of Turkish market
- Faster solution development

4. Troy implementation phase is completed, roll out started
ASSESSMENT
IMPLEMENTATION
ROLL OUT
2015
Current
Technology
Operating Rules
Regulatory Management
Strategic Planing
Roll out
Branding and Marketing
Fee Structure

5. Acquiring completed: Troy is in live since April 2016
POS
ATM
E-commerce
Troy cards are accepted at ~2.4 mio POS terminals and ~50K ATMs

6. Issuing is the current focus
Both magnetic stripe and EMV/contact chip technology are ready to issue as debit, credit and prepaid cards
TROY’s PRODUCTS
12 banks* completed all prerequisites for issuing such products
May 2017 is to reach 500 K Troy cards
To reach 1 million Troy cards at the end of 2017
BANKS
*These 12 banks have more than 90% market share for both credit and debit card

7. Troy acceptance strategy consists of three phases
Network Alliance partnership with Discover has already been started and agreement will be signed in April 2017
Current…
...INTERIM...
FUTURE...
Only domestic usage
International acceptance with one scheme
Widespread international acceptance
Cards with Troy logo is served for domestic use only
Members, will be able to serve to their customers cards with Troy logo for domestic use
As the first step for international usage, Members are able to co- badge with Discover, who is the preferred partner
Next steps for international usage will be co-badging with any international schemes

8. Troy Contactless products are being handled in 2 phases
New Troy products will be introduced to Turkish market in coming months
Troy Contactless products are being handled in 2 phases
Version 1.0
Version 1.0 –without data storage option- studies commenced with a target milestone of issuing first contactless cards with 2 banks on April 2017
Version 2.0
Version 2.0 –with data storage option that enhances campus and transportation applications- is planned to be live in 2017

9. Troy has ambitious targets, but we are committed
2017
Mobile payments studies is planned to be executed in 2017
2017
With the R&D Lab, new solutions will be introduced to the Turkish market more fast
2017
Current
Co-badge and contactless cards will be ready on April 2017
Both magnetic stripe and EMV/contact chip technology are ready to issue as debit, credit and prepaid cards

10. Thank you
@CenkTemiz1