Turkey has officially submitted a letter of intent to join the Single Euro Payments Area (SEPA), driven by a set of vital economic and strategic goals—especially given that the European Union is Turkey's largest trading partner, with a trade volume exceeding €200 billion.
The primary reasons behind this move can be broken down into the following key points:
1. Reducing Costs and Improving Transaction Speed
A major motivation for Turkey is to eliminate the high fees associated with traditional cross-border bank transfers. Currently, transferring an amount between €1,000 and €5,000 from Europe to Turkey can cost around €40 through existing channels. Joining SEPA will make cross-border Euro transactions just as cheap, fast, and seamless as domestic payments within Turkey, saving hundreds of millions of Euros annually.
2. Supporting Turkish Businesses and Boosting Competitiveness
Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, highlighted that this membership will directly facilitate trade and joint investments. By cutting down the administrative and financial burdens of daily transactions, it will give Turkish companies greater flexibility and a stronger competitive edge in European markets.
3. Serving the Massive Turkish Diaspora in Europe
The seamless instant transfers and direct debit systems provided by SEPA will immensely benefit millions of Turkish expatriates living in EU countries. These individuals regularly send remittances to their families back home, and SEPA will make this process significantly faster and far less expensive.
4. Financial Integration and Strategic Alignment with the EU
While Turkey's negotiations for full EU membership have been stalled for years, Ankara consistently emphasizes that joining the bloc remains a "strategic goal." Integration into a unified payment system serves as a practical step toward deepening economic ties and modernizing the Customs Union, potentially expanding it to include digital trade and services.
5. Driving Legislative and Financial Reforms
To be accepted into the SEPA network, Turkey must align with EU legislative frameworks regarding payment services. This requirement is pushing Ankara toward structural adjustments and updates to its laws, such as tightening anti-money laundering (AML) regulations, enhancing data protection, and amending public procurement laws to ensure reciprocity for European companies.