ArmInfo. Growth rates of non-cash transactions by plastic cards slackened in Armenia. According to the report of the Central Bank of Armenia the amount of non-cash card transactions totaled 85.7 bln drams in H1 2016. Despite significant amounts in absolute terms the growth rates of non-cash payments by bankcards slackened to current 12% from previous 32%.
According to regulator's data total amount of plastic transactions totaled 655.5 bln drams in H1 2016. However, y-o-y dynamics of this indicator deteriorated to 1% decline from 19.3% growth. At the same time number of active cards increased to 1.8 mln with acceleration of growth rates from 1.4% in H1 2015 to current 6.4%. Meanwhile, two years ago, in H1 2014, general transactions demonstrated 26% growth amid 10% growth of cards number.
It is noted that in 5-year terms the amount of non-cash plastic transactions grew 3.3-fold and the main growth almost-2-fold-was registered in the recent 3 years. In total amount of plastic transactions the share of non-cash ones grew from 7 to 13% within recent 6 years (July 1 2016 versus July 1 2010), which is determined by significant activation of internet trade and efficient measures taken by the banks to boost non-cash transactions such as CashBack.
Visa (45%) holds leading position by number of cards on Armenian plastic cards market as of July 1 2016, pushing aside ArCa local cards to second position (30%). The share of MasterCard is 22%, and the remaining 3% is the share of other international cards (HSBC, American Express, Diners Club). Meanwhile, in y-o-y terms the share of Visa and ArCa in total number of operating cards declined from 46% and 33% respectively, while the share of MasterCard grew from 18%. In 5 years term (July 1 2016 versus July 1 2011) the number of active cards grew 2.1-fold with similar growth of volume of transactions, and in three-years term (versus July 1 2013) the growth of these indicators totaled 19% and 49% respectively.
According to data of CBA as of July 1 2016 there were 784.2 thousand Visa cards in Armenia, 534.4 thousand ArCa cards, 392.2 thousand MasterCard, the number of other international cards (mainly HSBC cards, as well as AmEx and Diners Club) totals 45.5 thousand. In Q2 2016 alone the growth rates of number of operating cards has not changed significantly-0.8% versus 0.7% in Q1, mainly due to accelerated growth of MasterCard-to 8.4% from 5.1%, while acceleration of decline was registered in number of ArCa and Visa cards. Y-o-y acceleration of growth rates of the number of active cards is caused mainly by sharp improvement of MasterCard dynamics-from 4.1% decline to 30% growth, amid slackening growth of number of Visa cards-from 8.4% to 3%, continuing decline of the number of ArCa- by 1.5% and deterioration of dynamics of other international cards -from 2.1% growth to 1.2% decline.
Deterioration of y-o-y dynamics of plastic transactions (1% decline versus 19.3% growth) is related to both local and international cards: growth of transactions by ArCa slackened to 1.2% from 8.8%, by Visa-to 1.1% from 20.4%, MasterCard-to 11.7% from 24.2%, and transactions by other international cards registered 53.5% drop versus 40.4% growth. Visa holds leadership by amount of transactions since 2011- 314 bln drams in H1 2016, pushing ArCa back on second position-166 bln drams, MasterCard holds the third place with insignificant difference-more than 151 bln drams. In five years term the biggest growth of amounts was registered in transactions with MasterCard-3.2-fold and Visa-2.5-fold, amid more moderate growth of transactions with ArCa-by 56%.
As of July 1 2016 the number of POS-terminals in Armenia totaled 6630, 772 of which are located in head offices and branches of the banks. In y-o-y terms total number of POS-terminals grew by 5% or 337 and in Q2 alone-by 3% or 177. As of July 1 2016 there were 1511 ATMs with 8% y-o-y growth or by 114, 82 of which were installed in Q2. In 5-year terms the number of ATMs grew by 67% or by 606 (300 of which installed in recent 3 years), and POS-terminals by 56% or by 2388, out of which terminals in banks and their branches registered 50% growth. Since 2015 CBA stopped publishing the number of trade/service centers where ATMs or POS terminals have been installed, however in the end of 2014 their number was 6619, 3694 of which in trade centers and 275 in hotels.
To recall, Central Bank of Armenia is the majority shareholder of ArCa. The other big shareholders are ACBA-Credit Agricole Bank, Armeconombank and Ardshinbank. The other 14 commercial banks hold by 2% stakes in ArCa system.
