Webrazzi reported on 7 January 2026 that London-based Revolut is in talks to acquire FUPS as a route into Türkiye, a move that would turn one of Europe’s most valuable fintechs into a test case for how foreign capital enters a tightly regulated but fast-digitising Turkish financial services market. The talks, first attributed to Bloomberg by Turkish and international outlets, remain subject to uncertainty and would require approval from the Banking Regulation and Supervision Agency, known as BDDK. For investors, the significance is less about one possible transaction than about the model it signals: buying licensed infrastructure may now be the fastest way to participate in Türkiye’s digital banking race.
A License-Led Route Into Türkiye
According to Webrazzi, Revolut has been exploring the acquisition of FUPS to begin offering services in Türkiye, while the company declined to comment on market rumours and FUPS did not publicly comment. Euronews Türkiye similarly reported that no final agreement had been reached and that negotiations might not result in a transaction.
The target matters because FUPS Bank A.Ş. has already cleared a major regulatory hurdle. Anadolu Agency reported that BDDK granted operating licences to FUPS Bank A.Ş., Ziraat Dinamik Banka A.Ş. and Colendi Bank A.Ş. in decisions published on 5 November 2024. The decision placed FUPS Bank within Türkiye’s digital banking framework, allowing it to operate as a digital deposit bank under Banking Law No. 5411 and the regulation governing digital banks and service model banking.
That makes FUPS more than a customer acquisition target. It is a regulated entry vehicle. FUPS Bank’s own website presents the company as a digital deposit bank offering accounts, loans and cards, while FUPS also describes the consumer wallet as a Lydians brand, with Lydians authorised by the Central Bank of the Republic of Türkiye and a principal Visa member. Any investor would therefore need to map precisely which legal entities, licences, customer relationships, technology assets and liabilities are included in a potential transaction.
For Revolut, this would fit a broader pattern of jurisdiction-by-jurisdiction expansion. The company said in its 2025 results release that revenue rose 46 percent to $6.0 billion, profit before tax increased 57 percent to $2.3 billion, and its retail customer base reached 68.3 million at year-end 2025. It also reported 767,000 business customers and $1.7 trillion in transaction volume. A Turkish licence would add a large, digitally active economy to that platform, but only if the regulatory case is convincing.
Why Türkiye Is Attractive Despite Macro Friction
Türkiye’s appeal to a company such as Revolut is clear. It is a large market with a young consumer base, high mobile usage, strong e-commerce habits, demand for foreign exchange tools and a business community deeply exposed to cross-border trade. The IMF’s Türkiye country data show a population of about 86.2 million, while the fund projected 2026 real GDP growth of 2.9 percent and consumer price inflation of 28.6 percent. That macro backdrop is difficult for lenders, but it can increase demand for budgeting tools, multi-currency products, remittance services and real-time money movement.
Foreign investors are also returning selectively. The Investment and Finance Office of Türkiye said Türkiye attracted $13.1 billion in FDI in 2025, up 12.2 percent year on year, based on Central Bank balance of payments data. It reported that wholesale and retail trade accounted for 32 percent of inflows, manufacturing for 31 percent and information and communication for 14 percent. Treasury and Finance Minister Mehmet Şimşek said FDI excluding real estate reached $10.7 billion, the highest level in a decade.
That matters for fintech because payments sit at the intersection of retail, information technology and cross-border commerce. A platform that can serve consumers, freelancers, exporters, importers and SMEs could benefit from Türkiye’s role as a manufacturing and logistics hub, provided it can comply with local rules on payments, data, AML controls, consumer protection and bank governance.
The practical FDI lesson is that market entry in Turkish financial services is not simply a matter of localising an app. It requires corporate structuring, local regulatory approvals, capital planning, data and compliance architecture, tax analysis, and ongoing government relations. These are precisely the areas where market entry, incorporation, legal and tax compliance, government relations and project management become central to execution.
Payments Infrastructure Has Become a Strategic Asset
Türkiye’s payments infrastructure has developed rapidly. The Central Bank said in a January 2025 press release that the FAST instant payment system had reached 42 participants in 2024, including banks and payment and electronic money institutions, and processed an average of 13.8 million transactions per day in December 2024. The same announcement said new request-to-pay features had been opened to corporate users from 18 January 2025, including partial, early and delayed payment functions.
For a digital bank, those rails are not peripheral. They shape product design. Instant payments, QR standards, digital wallets and open banking determine whether a new entrant can compete with local banks and established fintechs on speed, cost and everyday usefulness. Revolut’s global strengths in foreign exchange, cards, subscriptions and business accounts would need to be rebuilt around Turkish rails, Turkish lira liquidity, local dispute rules and domestic customer expectations.
The market is also crowded. The Chambers Fintech 2026 Türkiye guide states that payment and e-money institutions operate under Law No. 6493, while digital banking and banking-as-a-service are regulated separately under the digital banking framework. It also notes that, according to CBRT data, Türkiye has 63 electronic money institutions and 23 payment institutions. This means a foreign entrant faces a mature licensing environment rather than a blank market.
Competition is not only from banks. Local fintechs have built strong consumer brands around prepaid cards, bill payments, peer transfers, subscriptions and SME services. Gazete Oksijen reported on 10 April 2026 that Revolut’s app had appeared in Turkish app stores, but users could only join a waiting list rather than access full services. That suggests brand preparation is moving ahead, while licence and operating questions remain decisive.
Regulation Is the Core Investment Risk
A FUPS transaction would need BDDK approval because control of a bank is not a standard private M&A exercise. Banking acquisitions in Türkiye require review of shareholders, capital sources, governance, internal controls, risk management and operational readiness. A large foreign fintech would also likely face scrutiny around data localisation, cybersecurity, AML systems, sanctions screening, outsourcing arrangements, customer funds and product scope.
The Turkish fintech sector has already seen how compliance can become an existential issue. Reuters, cited by FinTech Futures, reported in May 2025 that Turkish authorities detained 13 individuals as part of an investigation into Papara, including founder and chairman Ahmet Faruk Karslı, over allegations linked to money laundering and illegal betting. Turkish media later reported regulatory action around Papara’s operating licence, with subsequent legal developments contested and evolving. Whatever the final legal outcome, the episode reinforced the importance of AML, KYC and transaction monitoring in Türkiye’s payment sector.
This is where foreign investors often underestimate the market. Türkiye’s general FDI regime is comparatively open, but regulated sectors add sector-specific approvals and ongoing supervision. For fintech and banking, legal and tax compliance is not a closing condition to be checked once. It is a continuing licence to operate. Government relations also matters, not as lobbying in a narrow sense, but as structured communication with BDDK, CBRT, the Financial Crimes Investigation Board, the Competition Authority and, where relevant, the Capital Markets Board.
A potential acquisition may also trigger merger control. Turkish competition rules apply to certain M&A transactions, and technology undertakings have received particular attention since reforms expanded the review perimeter for digital and fintech targets. For an investor, sequencing matters: BDDK approval, competition clearance, share transfer mechanics, management appointments, brand migration, technology integration and customer communications all need a coordinated project plan.
The Broader FDI Signal
If Revolut ultimately acquires FUPS, it would validate the view that Türkiye’s digital banking licences have become investable assets. If it does not, the story still shows that global fintech groups see Türkiye as strategically relevant. The country offers scale, cross-border use cases and a consumer base comfortable with mobile finance, but not the regulatory simplicity of a passported European market.
For other foreign financial institutions, the question is whether to build, partner or buy. Building from scratch offers control but takes time and regulatory patience. Partnering through banking-as-a-service or a licensed payment institution can test demand with lower capital exposure. Buying a licensed bank may accelerate market access, but it concentrates due diligence risk around legacy systems, compliance files, shareholders, employees, contracts and supervisory expectations.
The choice also depends on product ambition. A payments or remittance player may operate through an electronic money or payment institution structure. A lender, deposit-taking platform or full digital bank needs a banking licence. A wealth, crypto or investment product adds separate capital markets and crypto-asset considerations. For exporters and importers, the opportunity may be less visible but still material: better FX tools, collections, supplier payments and SME accounts can support import-export facilitation if structured within Turkish rules.
What This Means for Foreign Investors
Revolut’s reported interest in FUPS should be read as a case study in regulated market entry. Türkiye can offer strong digital adoption and a meaningful FDI story, but foreign investors need to treat licensing, compliance and implementation as core parts of the investment thesis, not back-office details.
The concrete steps are clear. Investors need market entry analysis to decide whether to build, buy or partner. They need incorporation and corporate structuring to align ownership, capital and governance with Turkish law. They need legal and tax compliance work before signing, including licence due diligence, AML controls, data obligations and transfer pricing. They need government relations to manage transparent engagement with regulators. They may need investment incentives analysis for technology, employment or operational centres. They need project management to coordinate approvals, hiring, systems integration, vendor contracts and launch readiness. For platforms serving SMEs, import-export facilitation and trade-fair or expo representation can also support commercial rollout by connecting the financial product to real business corridors.
The likely lesson is not that every foreign fintech should buy a Turkish bank. It is that Türkiye rewards investors who understand the licence, the regulator and the operating environment before they commit capital. In digital finance, speed to market matters, but in Türkiye, regulatory credibility is what determines whether speed is sustainable.