Papara – Compliance Profile
π Key Company Data
| Field | Details |
|---|---|
| Legal Name | Papara Elektronik Para A.Ε. |
| Founded | 2016 |
| Headquarters | Istanbul, Turkey |
| Sector | Electronic Money & Payment Services |
| Regulatory License | Licensed by the Central Bank of Turkey (CBRT) as an Electronic Money Institution |
| Key Executive | Ahmed KarslΔ± (Founder & CEO) |
| Website | www.papara.com |
| Recent Status | Under criminal investigation for links to illegal betting transactions |
| Latest Update | May 2025 |
πΌ Business Overview
Papara is a leading Turkish fintech offering:
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Digital wallets and IBAN accounts
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Prepaid Mastercard & Visa cards
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Instant domestic transfers and QR payments
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Crypto integration (limited)
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Youth and business accounts
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Online payment API & marketplace tools
π‘οΈ Regulatory and Legal Status
| Aspect | Status |
|---|---|
| Licensing | β Licensed by CBRT |
| Ongoing Investigations | π¨ Involved in illegal betting investigation (12.8B TL transacted) |
| Law Enforcement | 13 arrests, company infrastructure under review |
| KYC/AML | Questioned β large-scale abuse via user accounts |
| Penalties/Fines | Not yet disclosed |
π§ RatEx42 Analysis: Risk Breakdown
| Category | Rating | Color | Notes |
|---|---|---|---|
| Legal Structure | Established | π’ Green | Registered and licensed locally |
| Regulatory Status | Under Investigation | π΄ Red | Facing scrutiny from financial crime authorities |
| Compliance Risk | High | π΄ Red | AML controls appear to have failed at scale |
| Audit & Transparency | Unclear | π Orange | No current public audit or system accountability disclosure |
| Data Security | Acceptable | π’ Green | No known breaches; secure infrastructure |
| Customer Support | Active | π’ Green | Known for fast, responsive customer service |
| Reputation | Damaged | π΄ Red | Trust shaken by news of 26K accounts tied to illegal betting |
| PCI DSS Scope | Applicable | β« Black | Processes cardholder data β PCI scope applies |
π User Reviews & Sentiment
| Source | Summary |
|---|---|
| Google Play / App Store | Generally positive (4.3β avg), but recent reviews flag concerns |
| Trustpilot | Mixed β Not officially claimed, many flagged reviews |
| Public Sentiment | Shifted from βtrusted local solutionβ to βunder watchβ |
π Conclusion
Papara rose as a fintech success story in Turkey, bridging gaps in digital finance for youth and underbanked communities. However, its alleged involvement in facilitating billions in illegal betting flows has exposed major weaknesses in its AML and compliance systems.
If verified, this scandal could:
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Trigger fines or suspension from the Central Bank
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Erode user trust and partnerships
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Undermine broader fintech trust in Turkey
Final RatEx42 Compliance Rating: π΄ 3.0 / 10
Status: “Licensed but Under Criminal Investigation“
