EWallet Demographics in Turkey
The e-wallet users in Turkey are mostly young people and men. Majority of e-wallet users in Turkey are also rich people, and among the digital account owners, the use of digital payments is equal among both male and female account owners.
- E-wallet services account for only 11% of all payment processing methods in Turkey.
- Turkish customers use cash for micropayments such as fresh markets or taxi.
- Rural farmers in Turkey prefer cash to digital payments.
- The unbanked population in Turkey is 31% of the country's adults.
E-WALLET IN TURKEY
- The major players in the e-wallet sector in Turkey are BKM Express, GPay, Mobilexpress, Papara, and Pay Cell.
- GPay and Turkcell have made major investments in e-wallets in Turkey.
- According to BKM, a partnership of public and private banks in Turkey, 56% of the population in Turkey uses a mobile payment app.
- Seventeen banks in Turkey support BKM Express e-wallet, and it has 1.4 million users.
- Since the launch of BKM Express e-wallet in Turkey in 2012 to May 2017, 21,000 retail members did 3.8 million transactions through it.
DEMOGRAPHICS OF E-WALLET USERS IN TURKEY
- E-wallet users in Turkey have Facebook accounts.
- Rich people who have bank accounts are 20% more than poor people who have bank accounts in Turkey, and this could reflect in the e-wallet customer demography as well.
- E-wallet users in Turkey are mainly men because more than 60% of women in Turkey remain unbanked.
- Among the bank account owners in Turkey, the use of digital payments is equal among both male and female account owners.
- According to Payments Cards & Mobile, globally, just below half of the smartphone users in the age group, 18-34, have an e-wallet.
- Also, globally, 44% of 35-44 age group smartphone users have an e-wallet.
- In total, about half of the global smartphone users aged between 18 and 44 have e-wallets.
- According to MEDICI, half of the Turkish population is under the age of 31.
- Majority of e-wallet users in Turkey are young people.
- According to a 2016 study by Gokhan Aydin, users of e-wallets in Turkey perceive themselves as more innovative than non-users, there is nil or shallow social influence on use intentions of e-wallets, and low-security concern among the users of e-wallet in Turkey.
In our search for the demographics of consumers of e-wallet services in Turkey, we first found a SlideShare presentation, which stated that the major players in the e-wallet sector in Turkey are BKM Express, GPay, Mobilexpress, Papara, and Pay Cell. However, SlideShare, as a source, has very low credibility. Still, as no other source was so far available, we decided to use this information as a starting point by trying to find out the customer demographics of the five e-wallets listed by SlideShare. According to a blog by Wirecard, one of the biggest payment infrastructures of Europe, GPay and Turkcell have made major investments in e-wallets in Turkey. Hence, we also included Turkcell in the list to look for customer demographics.
BKM Express is the e-wallet operated by BKM, a partnership of public and private banks in Turkey. According to a BKM report, 56% of the population in Turkey uses a mobile payment app, 17 banks in Turkey support BKM express e-wallet, and it has 1.4 million users. The report also states that since the launch of BKM Express e-wallet in Turkey in 2012 to May 2017, 21,000 retail members did 3.8 million transactions through it. Also, according to the report, almost all online Turkish people have a Facebook account, and hence, it is assumed that the e-wallet users in Turkey have Facebook accounts.
We also found a report by PYMNTS.com stating that Turkish customers use cash for micropayments such as fresh markets or taxi and that rural farmers prefer cash to digital payments.
Furthermore, the Global Findex Database 2017, published by The World Bank, offered some demographic information on the bank account holders and those who use digital transactions in Turkey. According to the report, there is a 20% difference between the poor and the rich in Turkey when it comes to bank account ownership. The e-wallet users have to be bank account holders, primarily. Hence, it is assumed that e-wallet users in Turkey are mostly categorized as rich. The report also states that women make up more than 60% of unbanked adults in Turkey. Hence, it is assumed that the e-wallet users are mainly men. However, the report also informs that among the bank account holders in Turkey, there is equal use of digital payments by men and women.
Independent searches of each major e-wallet companies, as identified above, did not yield any customer demographic details. As we also could not find any precompiled demographic information on general Turkish e-wallet customer demographics, we tried using the Turkish translation of relevant keywords to search industry-related Turkish websites and newspapers, but no useful results came up. Market intelligence agencies such as PR Newswire and Business Wire have published reports on the Turkish e-wallet market, and these reports could have customer demographics. However, these reports are paywall protected. Hence, we tried broadening the research scope by finding the global demographics of e-wallet users and apply that to Turkish customers. However, the social situation in Turkey, for example, as reflected in the statistic that more 60% of Turkish women remain unbanked, make it challenging to apply the global data to the Turkish scenario. Still, we have used the fact that globally, the majority of e-wallet customers belong to the 18-44 age group, as a corroborating statistic to conclude that Turkish e-wallet customers are mainly young people.
According to Payments Cards & Mobile, globally, just below half of the smartphone users in the age group, 18-34, have an e-wallet, and 44% of smartphone users in the 35-44 age group have an e-wallet. In total, about half of the global smartphone users aged between 18 and 44 have e-wallets. A report by MEDICI also supports this assumption stating that half of the Turkish population is under the age of 31. By triangulating using the information above, it is assumed that a significant portion of e-wallet users in Turkey could be young people.
Note, however, that we could not find any demographic data about the education and employment of e-wallet customers in Turkey. Although we broadened our search to global e-wallet customers, the global e-wallet customer research reports by agencies such as Nielsen, McKinsey, Market Research Future and JP Morgan did not provide any details on customer education or employment. Business magazines such as Forbes, Fortune, and The Economic Times, as well as news reports on global e-wallet customers, also did not provide data on global e-wallet customer education and employment.