When I think back to the Akbil I used when I first arrived in Istanbul, I think it's fair to say that Istanbulkart has undergone a very significant transformation.
Now we can track our Istanbulkart activity from our phones, and we can also top up and view our balance directly from our phones.
According to a statement from the Istanbul Metropolitan Municipality, a memorandum of understanding was signed between BELBIM A.S., an IBB subsidiary, and the Interbank Card Center (BKM) to integrate Istanbulkart with Turkey's domestic payment system, TROY.
According to the statement, Istanbulkart, which has 8 million active users, will be converted into an international prepaid card. With Istanbulkart, users will be able to withdraw or deposit cash at all ATMs without needing a bank card.
In addition, citizens will be able to pay at all merchants such as supermarkets, restaurants and cafes using the Istanbulkart in their pocket, just as they pay public transport fares. Purchases made with Istanbulkart will be processed as single-installment payments. Work on the TROY-enabled Istanbulkart is planned to be completed by the end of this year.
Once the work planned to be completed by the end of the year is finished, Istanbulkart will become an international prepaid card usable at more than 50,000 ATMs and around 2.4 million payment points across Turkey, and at 2 million ATMs and more than 42 million points across 190 countries worldwide.
Let's brainstorm about what needs to be done to set up this system:
- First, a BIN will need to be assigned to Istanbulkart in order to issue it under the TROY logo. After that, the licensing and certification required for TROY must be completed.
- For the card to be valid abroad, the BIN will need to be obtained through Discover.
- For a company to issue a card under the MasterCard/Visa or TROY scheme, it must be an institution authorized to issue cards. Since BELBIM is not authorized to issue cards, the relevant card BIN will need to be issued under a payment institution. On this subject, BKM already has TROY integrations with several payment institutions. I think a similar integration will be set up here as well.
- The relevant BIN must be shared with all banks, and the banks must define these BINs in their own systems so that transactions can be completed successfully at their ATMs and POS terminals. BIN announcements are currently made by BKM. A similar announcement will be made for this BIN as well.
- When a card transacts at another bank's POS terminals and ATMs, the clearing and reconciliation process comes into play. For a card transacting at a POS terminal or ATM, the Incoming process needs to be designed, and for potential chargeback, documentation and fee processes, the Outgoing process needs to be designed.
- The flows for setting/changing and verifying the card PIN need to be designed.
- The card authorization stage needs to be designed. These cards must support both offline and online authorization transactions.
Who will generate the card number for Istanbulkart?
Most likely, receiving Istanbulkart requests and completing the process will remain with BELBIM, while the generation of the card number will be handled by the financial institution authorized to issue cards.
Where will Istanbulkart transaction approvals be given?
I think transit transaction approvals will remain with BELBIM, while POS and ATM transaction authorizations will be given through a third party (the financial institution authorized to issue the card).
Where will fraud monitoring for Istanbulkart transactions be carried out?
I think fraud management will be carried out through the third party (the financial institution authorized to issue the card).
How will the card be closed and canceled in case of loss or theft?
Istanbulkart users will probably carry out this process by calling IBB's call center. The system in which the transaction is processed will again be the system of the institution authorized to issue the card.
What will happen to existing cards?
Existing cards will probably remain valid for a certain period, while new applications and renewal cards will be issued under TROY.
In the field, both the old Istanbulkart and the TROY Istanbulkart will operate side by side for a certain period. When a card transacts, it will need to be checked whether it is the old card or a TROY card, and authorization flows managed accordingly.
The current Istanbulkart carries a photo and personal information. Will these appear on the TROY Istanbulkart too?
There is no reason it shouldn't. This information should be collected during the card application and printed on the card. Prepaid cards already used in everyday life already have these features.
Istanbulkart comes in variants such as student, teacher and senior cards. How will this work with the TROY Istanbulkart?
This information can be kept in the system on a profile basis and printed on the card according to the profile at the card printing stage. Since the card will be a chip card, this kind of information can easily be stored on the chip.
Once a student's period of study ends, will they use this card like a normal Istanbulkart?
I think there will be a validation (renewal) structure here, just as with the current Istanbulkart. This validation structure will be integrated into the existing system.
We say Istanbul TROY cards can transact at POS terminals and ATMs. So, will these transactions be free of charge?
Currently, no commission is charged to the customer for POS transactions. However, a commission will be charged for ATM transactions. For this reason, it should be kept in mind that a commission will be paid when transacting through an ATM.
How will the card be topped up?
It will be sufficient to set up integration with the existing top-up points so that TROY Istanbulkarts can be topped up as well. In addition, Istanbulkart will also be able to be topped up via card-to-card money transfer.
Will the balance used for transit be the same as the balance used for purchases?
These balances could be managed separately, or managed under the same balance. Technically, limits can be managed separately. Since this is an internal institutional decision, we can only speculate on this matter.
Can contactless transactions be made with the TROY Istanbulkart?
Considering current technology and the convenience of contactless transactions, as well as the satisfaction they create among customers, I think this function will also be available on these cards.
In conclusion,
Istanbulkart is not just turning into a card bearing the TROY logo; it is turning into a platform compatible with today's technologies, one where we can carry out all of our transactions with just the card. In fact, when we consider that transactions could even be made via mobile phones without the physical card, the TROY Istanbulkart looks set to become a solution that will actively meet our needs not only within the borders of Istanbul, but anywhere in the world.
What can we say, thank goodness for TROY, thank goodness for Istanbulkart!!!!
