Turkish fintech giant Papara—which recently acquired Pakistan’s digital payment startup SadaPay—is now facing a serious investigation in Turkey over money laundering and criminal organization charges, according to Reuters.
The development has raised eyebrows in both Turkish and Pakistani fintech circles, especially given Papara’s rapid global expansion and recent ventures.
👮♂️ 13 Arrests Made — Including Papara’s Founder
Interior Minister Ali Yerlikaya confirmed that 13 individuals have been detained as part of the probe. This includes Papara’s founder and chairman, Ahmet Faruk Karsli, as reported by TRTHaber, a leading Turkish news outlet.
The allegations center around Papara allegedly:
- Enabling users to open accounts used for illegal online betting
- Facilitating money transfers linked to criminal proceeds
- Allowing over 26,000 accounts to conduct suspicious transactions worth $330 million USD
💼 What Is Papara?
Founded in 2015, Papara quickly became one of Turkey’s fastest-growing fintech companies, offering:
- Online money transfers
- Foreign exchange transactions
- Bill payment services
It holds an official electronic money institution license from Turkey’s regulatory authority BDDK, and serves over 21 million users.
🌍 Why This Matters to Pakistan: The SadaPay Connection
In 2023, Papara made headlines by acquiring SadaPay, one of Pakistan’s most promising fintech startups.
At the time, SadaPay celebrated the deal, stating:
“Papara has built one of the most profitable neobanks globally… their support will propel us to even greater heights.”
But with Papara now under investigation, questions may arise about the implications for SadaPay’s operations, regulatory status, and overall reputation in Pakistan’s rapidly evolving fintech landscape.
🤐 No Immediate Comment from Papara
As of now, Papara has not publicly responded to the allegations or the ongoing investigation. Reuters noted that requests for comment were not immediately answered by the company.
🧠 What’s Next?
While the full legal and regulatory implications remain to be seen, this case highlights some urgent concerns:
- ⚠️ Due diligence in cross-border fintech acquisitions
- 📊 Risks of unregulated or loosely monitored digital financial platforms
- 🔍 Increased scrutiny on financial institutions involved in global money transfers
Regulators in both Turkey and Pakistan may now face pressure to re-examine the operational transparency and compliance of fintech ventures like Papara and its subsidiaries.
📣 Final Thoughts
As fintech continues to reshape financial access across borders, this case serves as a reminder that trust, compliance, and transparency must remain front and center.
For now, SadaPay users and stakeholders may be watching closely to see how this situation unfolds.
