What Is the Card Usage Rate? The Rise of Card Payments and Digital Transformation

Our shopping habits are going through a quiet revolution. Today, it’s not the cash in our pockets but the digital wallets and cards on our phones that take the lead. Digitalization, contactless payment technologies, and fintech solutions are the main drivers of this transformation. In this Papel Blog article, we explore the reasons behind the rise in card usage rate, its impact on the economy and the fintech sector, and how next-generation payment technologies are taking shape in Türkiye.

The transformation of payment habits: from cash to card

Payment habits in Türkiye have changed rapidly in recent years. While cash was once the dominant method for daily spending, digitalization has replaced it with card payments. Especially after the pandemic, the increased need for hygiene and speed not only boosted card usage but also accelerated the adoption of contactless payment technologies and the use of mobile wallets such as Papel Wallet.

According to CBRT data, the share of card payments in total spending was around 40% in 2019, rising to over 60% in 2024. BKM statistics also support this increase. The data shows that while only 12% of card transactions were contactless in 2019, this rate rose to 66% in 2024. In other words, cards have become preferred not only for high-value purchases but also for everyday spending such as groceries and transportation.

The rise in card usage rate is driven by factors such as security, the cost of carrying cash, inflation, and the enabling role of fintech solutions. Among young users in particular, the use of digital cards and mobile wallets continues to grow rapidly.

What does the card usage rate mean?

The card usage rate, a strong indicator of the level of digitalization in Türkiye’s financial behavior, is defined by the Central Bank of the Republic of Türkiye (CBRT) as “the share of card-based spending in total spending.”

When calculating this rate, the amount of card-based spending in a specific sector is divided by the total sales volume in the same period. In this way, not only card transactions but also overall consumption trends can be measured.

The data used in this calculation is based on reliable sources such as transaction records from banks’ POS systems, BKM (Interbank Card Center) statistics, and sectoral sales data. The resulting findings reveal that the increase in card usage does not always directly reflect an increase in consumption; sometimes it simply indicates a shift in payment preference — from cash to cards.

Card usage's impact on the economy and the fintech sector

The rise in card usage rate, which reflects both changing consumer habits and Türkiye’s pace of digital economic transformation, is creating new opportunities in financial technologies while reshaping the structure of the banking and regulatory ecosystem.

The transformation of consumer behavior

With the growing volume of card transactions, consumer behavior in Türkiye is rapidly changing. Users seeking convenience, speed, and security increasingly prefer digital payments over cash. Especially after the pandemic, contactless payments and mobile wallet usage increased significantly. In 2024, two-thirds of card transactions in Türkiye were contactless, while QR payments increased by more than 270% compared to the previous year. This shows that consumers have permanently adapted to digital financial tools.

What it means for fintech, banks, and payment institutions

With the rising card usage creating growth opportunities for the fintech ecosystem and banks, fintech investments in Türkiye surpassed 200 million dollars as of 2025. Digital wallets, virtual cards, and open banking solutions are reshaping financial services, while electronic money institutions have become some of the most dynamic players in this transformation.

Regulation and digital infrastructure

Regulations carried out by the CBRT and BRSA support the security and sustainability of digital payments. Licensing processes, data security, ty and KVKK compliance play a critical role in the digitalization of the financial system. Thus, the rising card usage rate becomes not only a consumption indicator but also a concrete measure of economic digitalization.

Next-generation payment technologies and a look into the future

Card-based spending is no longer just a payment method but an economic indicator reflecting the advancement of the digital economy. Türkiye, where this transformation is happening rapidly, is making significant progress in digital payment technologies.

Contactless cards, mobile wallets, QR payments, and biometric solutions have permanently changed payment habits. Users now seek faster, safer, and more personalized payment experiences.

One of the local pioneers of this transformation, Papel, accelerates this process with its innovative products. The best example is Face Payment technology. This biometric verification-based system allows users to make secure and contactless payments simply by looking at a camera. This not only sets a new standard in terms of speed and security but also strengthens Türkiye’s digital payment technology transformation.

In the near future, open banking, AI-powered identity verification, and biometric payments will become standard parts of everyday life. Türkiye continues to move closer to its cashless society goal with every step of this digital transformation.

 

Sources: 1, 2.  

This blog post contains general information, not legal, financial, or investment advice. The content is prepared for informational purposes only, and you are advised to seek professional advice for your specific circumstances. The expressions in this article do not carry any binding nature or responsibility and reflect only the author’s evaluation. All your decisions are your responsibility, and Papel Electronic Money and Payment Services Inc. accepts no liability for any consequences arising from them.