Finance
EU Pitched for Turkey to Join Its Payments System, Envoy Says
Published by Global Banking & Finance Review®
Posted on March 19, 2026
3 min readLast updated: March 19, 2026
Quick Summary
The EU proposed last month that Turkey—an EU candidate—join its Single Euro Payments Area (SEPA) to cut costs and speed up cross-border euro transfers, aiming to bolster economic integration and offer major savings for businesses, consumers and the diaspora.
EU Suggests Turkey Join SEPA Payment System to Lower Cross-Border Costs
EU Proposal and Potential Impact on Turkey's Financial Integration
By Jonathan Spicer
Background of the SEPA Proposal
ISTANBUL, March 19 (Reuters) - The European Union pitched to Turkey last month the idea that the candidate for bloc membership could join a cost-cutting payments system to boost integration efforts and benefit those sending money abroad, the EU envoy to Ankara told Reuters.
Jurgis Vilcinskas, the bloc's chargé d’affaires in Turkey, said European Commissioner for Enlargement Marta Kos discussed the proposal with Foreign Minister Hakan Fidan, when the two met last month in Ankara.
About SEPA and Its Benefits
The EU says its 41-country Single Euro Payments Area (SEPA) makes cross-border euro-currency payments cheaper, faster and more secure. Users in far smaller Balkan candidates Albania, Moldova, Montenegro and North Macedonia, which adopted the scheme last year, could save up to 500 million euros, it said.
Potential Benefits for Turkey
"SEPA could present a valuable opportunity to strengthen Turkiye’s economic integration as a candidate country and a key trade and economic partner of the EU," Vilcinskas told Reuters in a response, using the Turkish spelling of the name.
It could generate "significant savings annually for Turkish businesses, consumers and diaspora by making cross-border transfers in Euros as fast and as cheap as domestic ones," he said.
Turkey's Response and Considerations
Ankara's view on the matter is unclear.
A Turkish diplomatic source confirmed that during Kos' February 6 visit an offer had been conveyed to Ankara, adding the SEPA issue was under the jurisdiction and coordination of the Finance Ministry, which did not comment on the matter.
Economic Implications and Requirements
STEPS EYED TO BOLSTER ECONOMIC TIES
Under SEPA, Turkish banks could stand to lose revenues on transfers, which vary widely based on size. A Turkey-Europe transfer of 1,000 euros to 5000 euros can cost 40 euros, according to Western Union.
Europe is Turkey's largest trading partner with more than 200 billion euros in volume. With bloc membership talks effectively stalled for years, both say they want to modernize their customs union and move to boost economic ties.
Compliance and Support from the EU
Vilcinskas said Turkey would need to comply with the EU's Payment Services Directive, including strengthening its anti-money laundering and data protection rules, adding that the Commission was ready to support Turkey in any SEPA endeavour.
Expert Opinions on SEPA's Impact
SEPA could bring "significant" savings, especially for the large Turkish diaspora across Europe, a Turkish banking source said.
In an interview this month, Odile Renaud‑Basso, president of the European Bank for Reconstruction and Development, said SEPA would "basically make transactions cost-free".
(Reporting by Jonathan Spicer; Additional reporting by Tuvan Gumrukcu in Ankara and Ebru Tuncay in Istanbul; Editing by Daren Butler and Clarence Fernandez)
Key Takeaways
- •The EU offered Turkey SEPA participation, which lets euro transfers be as cheap and fast as domestic payments, promising significant annual savings for Turkish firms, consumers and diaspora. Vilcinskas said adoption would require Turkey to align with the EU’s Payment Services Directive and strengthen AML and data protection rules. Turkey’s official response remains pending, as responsibility lies with its Finance Ministry.
Frequently Asked Questions about EU pitched for Turkey to join its payments system, envoy says
1What is SEPA and how could it benefit Turkey?
SEPA is the EU's Single Euro Payments Area, enabling cheaper, faster, and secure cross-border euro payments. Turkey's inclusion could mean significant annual savings for businesses, consumers, and the Turkish diaspora.
2Has Turkey agreed to join SEPA?
Turkey has received the EU's proposal, but its official stance is unclear. The matter is under review by the Finance Ministry.
3How much could Turkish Euro transfers cost under SEPA?
Currently, transferring 1,000 to 5,000 euros between Turkey and Europe can cost around 40 euros. SEPA could reduce or nearly eliminate these fees.
4What are the requirements for Turkey to join SEPA?
Turkey would need to comply with the EU's Payment Services Directive, particularly on anti-money laundering and data protection rules.
5Why is SEPA integration important for EU-Turkey relations?
SEPA integration is seen as a way to modernize ties, boost economic integration, and support trade given stalled EU membership talks.
