Visa International still dominating on Armenia`s 1.7-million-strong market of plastic cards

 

The growth rate of the number of the plastic cards circulated in the Armenian market speeded up in Q2 2015 by 2.4% after 0.7% slackening.  This was mainly due to the improved dynamics of MasterCard - from 9.3% decline to 3.7% growth. Transactions with plastic cards grew 66.1% in Q2 to 497.6 bln drams, as the quarterly dynamics of ArCA, Visa and MasterCard improved.  The number of cards grew 1.4% year over year, with the volume of transactions increasing by 67%. The number of the plastic cards grew nearly threefold for the last five years (comparing to Q2 2010), with the volume of transactions 

increasing nearly fourfold.  

 

According to the Armenian Central Bank (CB), as of Jul 1 2015, there were 761.1 thousand Visa cards in the Armenia market, 542.3 thousand ArCa, 301.6 thousand MasterCard, and 46.1 thousand other cards 

(mainly HSBC, AmEx ad Diners Club).  Visa accounted for 46.1% of total (versus 43.1% a year ago), ArCa - 32.8% (versus 34.8% a year ago), MasterCard - 19.3% (versus 19,3% a year ago).  According to the source, in Q2 2015, 9.7 million transactions with plastic cards were registered (a 48.4% growth versus Q1 and 58.6% growth y-o-y) for 497.6 bln drams (66.1% growth vs Q1 and 67% growth y- o-y). 

Transactions with ArCa cards totaled 2.9 mln or 119.7 bln drams, the ones with Visa cards totaled 4.1 mln or 220.5 bln drams, with MasterCard - 2 mln or 98/7 bln drams, others - 660.9 thousand or 58.6 

bln drams (mainly HSBC and partially ArEx).

 

The volume of transactions with MasterCard grew 70.2% y-o-y, with Visa - 60.7%, ArCa - 45%. In Q2 2015 alone, the transactions with ArCa cards grew 59.3%, the ones with MasterCard and Visa  - 55.8% and 54.6%, respectively.  As compared to Jul 2010, the volume of transactions with MasterCard grew over fivefold, with Visa - over fourfold, and ArCa - over twofold. Visa and MasterCard remain high growth rates during the last three years too.

 

As of Jul 1 2015, then umber of POS-terminals in Armenia totaled 6221, including 730 at head office and branches of banks. The number of POS-terminals fell 10.6% or by 738 terminals y-o-y, for Q2 alone 

it grew by 0.4% or 24 terminals.   ATMs totaled 1406 with a 5.3% or 71 y-o-y , including 53 ATMs were installed in Q2. The number of ATM has nearly doubled  (by 652) for the last five years , the one of POS- terminals increased more than twofold or by 3260. The Central Bank stopped publishing the number of the trade and service points were ATM and POS-terminals are available in 2015. As of late 2014, they numbered 6619. 

 

The majority shareholder of ArCa is the Central Bank, other shareholders re ACBA-Credit Agricole Bank, Armeconombank and Ardshinbank, with the remaining 14 banks hold by 2% shares.