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“Light Rises from the East”Opportunities in the Orient for Payments
Barbaros ÖzbuğutuCEO & Co-Founder iyzico6th April 2016
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Orient – Countries and Market Overview
16countries
Turkey, Iran, UAELargest E-Commerce Countries
$40bE-commerce Sales
in 2015
45%E-Commerce Growth
in 2015
410mPopulation
Turkey
Iran
Saudi Arabia
Egypt
SyriaIraq
Jordan Kuwait
UAEOman
Yemen
Bahrain
Qatar
Cyprus
IsraelLebanon
Cyprus
Saudi Arabia
Egypt
SyriaIraq
Jordan Kuwait
UAEOman
Yemen
IsraelLebanon
Bahrain
Qatar
Middle East – Territory Without Turkey & Iran
Middle East – Internet & E-Commerce Stats
128mInternet Users
58mMobile Internet Users
250mPopulation
35mOnline Buyers
$19bnE-Com Sales
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Middle East – Cash on Delivery Remains King
32%9 %
Credit Card Penetration Egypt KSA
Credit Card Penetration KuwaitUAE
67% 75%
Ratio of
80% 20%
Turkey & Iran have different payment dynamics
Turkey
Turkey – Internet & E-Commerce Stats
46mInternet Users
17mOnline Buyers
79mPopulation
10mMobile Buyers
36mMobile Users
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Turkey – Payment Stats
58mCredit Cards
112mDebit Cards
2.2mPOS Terminals
Ranks #1 Source: http://webrazzi.com/2015/12/03/bkm-turkiye-banka-karti-ve-kredi-karti-siralamasinda-birinci-siraya-yukseldi/
Turkey – E-Commerce Market Growth (bn $)
1.6% of Total Retail
10
of E-commerce Transactionsare made by Credit Cards85%
Online Payments use Instalment Option65%
Turkey –Cards Dominate Online Payments
Traditional Credit Cardsare not sufficient in Turkey
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Loyalty Scheme
• Installments• Loyalty Points• Cash-Back Rewards• Special Discounts• Travel Benefits• Merchant-specific Campaigns (Retail,
Travel, Fuel, Entertainment, etc)
e.g. Card Family – Bonus
Turkey – Local Bank-Driven Card Programs
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Instalment Period (3/6/9 instalments)
Credit CardFamily which offers
the instalment
Turkey – Online spending driven by Instalments
of online purchases areinstalment transactions65% Instalment offers are key
driver for E-Commerce growth
Iran
Iran –The Next Big Thing?
Iran – Internet & E-Commerce Stats
47mInternet Users
80mPopulation
$6bnDigital Sales
29mMobile InternetUsers
32mAge Group 15-34
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Iran – Strong local card network: Shetab
• International credit cards are not accepted in Iran
of online purchases areLocal debit transactions100%
231mio
debit cards
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Enter the fastest growing e-commerce region
TurkeyIran
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Enter the fastest growing e-commerce region
TurkeyIran
400m93mInternet Users Local Cards
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Key Takeaways
• Strong and persistent cash culture in MENA
• Turkey & Iran with high local card penetrations
• Loyalty cards with installments are driving E-Commerce
growth in Turkey
• International card schemes are not accepted in Iran
• Shetab Network with 231 Million Cards
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iyzico – at a glance
• Founded in 2013
• Investors
• Over 5.500 Live Merchants
• Unique acquirer for local card schemes in Turkey & Iran
• Cross-border E-Commerce enabler for the Orient
