What is Payment Institution?
Also known as: PSP, payment service provider
A payment institution is a non-bank company licensed to provide payment services. In Turkey, payment institutions and electronic money institutions are licensed and supervised by the Central Bank of the Republic of Türkiye (CBRT/TCMB) under Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions.
How does Payment Institution work?
- Instead of signing a virtual POS agreement directly with a bank, the business signs with the payment institution and accepts card payments through its infrastructure.
- The payment institution settles the collected funds to the business under its own terms (commission and settlement timing).
- Payment institutions typically bundle services such as quick onboarding, hosted payment pages, payment links and marketplace infrastructure.
Key points
- In Turkey, licensing and supervision sit with the CBRT
- Offers a quick start but ties the business to a single channel's terms
- Payment institutions and payment orchestration are complementary, not alternatives
Payment Institution with Treps
Treps is not a payment institution; it is a payment orchestration platform that runs on top of banks and payment institutions. Businesses can use the payment institutions and banks they have agreements with together through Treps.
Frequently asked questions
What is the difference between a payment institution and a bank?
Banks can take deposits and lend; payment institutions can only provide the payment services defined in their licence. Payment institutions in Turkey are licensed and supervised by the CBRT.
Do I need payment orchestration if I use a payment institution?
Small businesses working with a single payment institution usually do not. As volume grows, using several banks and payment institutions together brings cost and uptime advantages — that is where an orchestration layer comes in.