This move is meant to strengthen the company’s position in the market and expand in the financial services sector.
iyzico’s mission is to democratise financial services by improving its B2B and B2B2C capabilities and being prominent in the digital payments landscape. The addition of Paynet, a financial company founded by Arena Group, allows the fintech to broaden its service offering and market reach.
The fintech aims to foster merchant growth, accelerate digital transformation, and deliver comprehensive shopping experiences for users. By integrating Paynet’s B2B and B2B2C payment solutions into iyzico’s product portfolio, the company can make its financial services more inclusive and accessible.
Turkish companies have seen a 10% rise in B2B sales made on credit during 2023, averaging 46% of all B2B transactions. This shift is particularly notable in the transport and storage sectors, driven by strong domestic demand and export performance. This is underpinned by a payment policy aimed at supporting sales, with payment terms now standing at a 55-day average from invoicing, up from 42 days in 2022. However, the electronics/ICT sector has adopted more stringent terms. Nearly 60% of Turkish companies report no significant changes in their B2B customers' payment practices.
Some challenges that bring up issues for the industry include economic pressures, payment delays, and regulatory changes. Evolving regulations require businesses to adapt their payment processes, adding complexity to B2B transactions.
Additionally, inflation and energy costs are major concerns for Turkish businesses, as these factors affect liquidity and payment behaviours. When it comes to payment delays, extended payment terms have led to longer wait times for payment collection, impacting cash flow and operational efficiency.
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