Tuesday, September 12 2017 16:00
Karina Melikyan

Armenian Central Bank: annual growth of non-cash card transactions accelerated in Q1 2017 from 11.7% to 47.2%

Armenian Central Bank: annual growth of non-cash card transactions  accelerated in Q1  2017 from 11.7% to 47.2%

ArmInfo. In Armenia, annual  growth of non-cash transactions on plastic cards accelerated in the  first half of 2017 from 11.7% to 47.2%. According to the report of  the Central Bank of Armenia, the volume of non-cash card transactions  for the reporting period amounted to 126.2 billion drams. In the  second quarter of 2017 alone, the volume of non-cash plastic  operations changed from a downward trend of 16.6% to an upward trend  of 26.9%, versus an exit from the 15.3% decline in the 21.5% growth  in the second quarter of 2016.

The total volume of plastic transactions for the first half of 2017  was 748.6 billion AMD, with the release of annual dynamics from a 1%  decline to 14.2% growth, with a quarterly trend change from a  downward 13% to a 21.3% increase. In parallel with this, the number  of referring cards fell to 1.6 million units, with the deterioration  in annual dynamics from 6.4% growth to 8.9% decline with quarterly  improvement - from 1.1% decline to 3% growth.

In the five-year period, the volume of non-cash plastic transactions  increased 3.2 times, with the main growth - 2.2 times - in the last  three years. In the total volume of plastic transactions, the share  of non-cash transactions for the last five years (I half-year of 2017  to the first half of 2012) increased from 10% to 17%, which is caused  by a significant increase in Internet commerce and the banks taking  such effective measures to encourage non-cash transactions like  CashBack purchases).

On the Armenian plastic market, by 1 July 2017, Visa holds the  leading position in the number of cards, 36% in the second position,  33% in the local ArCa cards, 28% in MasterCard, and the remaining 3%  these are other international cards (HSBC, American Express, Diners  Club). Meanwhile, on an annual basis, Visa's share in the total  number of cards in circulation decreased from 45%, while the share of  ArCa and MasterCard increased from 30% and 22%, respectively. In the  five-year period (July 1, 2017, by July 1, 2012), the number of cards  turned up grew by 41%, with the transaction volume increasing by 88%,  with MasterCard leading by 2-3 times in terms of the rate of ascent  of volume and quantity with a large margin.

According to the Central Bank of Armenia data, by July 1, 2017, there  are 575.7 thousand items in Armenia. Visa, 533.6 thousand units.  ArCa, 445.6 thousand units. MasterCard, and the number of other  international cards (mainly HSBC-cards, as well as AmEx and Diners  Club) exceeds 45 thousand units.  The annual deterioration in the  dynamics of the total number of cards from growth to decline was  mostly caused by the reduction of Visa by 26.6%, against which the  decline of ArCa and other international cards looked too modest -  0.1-1.1%, and MasterCard at that time showed an increase of 13.6%. As  a comparison, in the same period of 2016 MasterCard showed a 30%  annual growth, Visa - only 3% growth, while ArCa and other  international cards were in decline - 1,2-1,5% .

The release of the annual dynamics of the volume of plastic  transactions in the first half of 2017 from a 1% decline in the 14.2%  growth was triggered by MasterCard and other international cards,  with a slight increase in Visa and the decline in ArCa. Thus,  according to MasterCard, the annual growth in the volume of  transactions accelerated from 11.7% to 32.5%, on Visa from 1.1% to  5.5%, on other international cards - the dynamics came out of the  53.5% decline growth of 2.3 times, while the dynamics of transaction  volume by ArCa "fell" from 1.2% growth to a 3.4% decline. As for the  volume of transactions, Visa has been leading since 2011 - 331.4  billion AMD in the first half of 2017, second place in MasterCard -  200.3 billion AMD, on the third ArCa - 160.2 billion AMD, and on  other international cards the volume of transactions amounted to 56.7  billion AMD. In the five-year period, the largest growth was recorded  in transactions with MasterCard - 3 times and Visa - 97%, other  international cards - 80%, and against this background, the 22.3%  growth in transactions with ArCa looks too modest.

As of July 1, 2017, there were 7184 POS-terminals in Armenia, of  which 790 are located in head offices and branches of banks. In the  annual section, the total number of POS-terminals increased by 8% or  554 pcs ATMs on the above date were 1347 pcs with an annual decline  of 11% or 164 pcs. In the five-year section, the number of ATMs grew  by 23% or 253 units, and POS-terminals by 20% or 1199 units. The  number of trade / service points where ATMs or POS terminals are  installed has ceased to be published by the Central Bank since 2015,  but at the end of 2014 there were 6619 of which 3694 in retail  outlets and 275 in hotels.

To recall, the Central Bank of Armenia is the majority shareholder of  ArCa, ACBA-Credit Agricole Bank, Armeconombank and Ardshinbank are  the major holders of the shares, and the remaining banks own 2% each.  The Memorandum of Cooperation between Armenian Card JSC (operator of  Armenia's payment system ArCa) and JSC NSPK (operator of the Russian  payment system MIR) was signed on June 3, 2016.  In 2017, on July 7,  the Central Bank included the Russian NSPC "MIR" in the register of  active payment and settlement systems, and gave permission to  "Armenian Card" JSC to participate in the "MIR" system.  Intersystem  interaction provides for mutual acceptance of NPS maps in the  infrastructures of two countries:  ArCa cards in Russia, MIR cards in  Armenia, and the issue of ArCa-MIR cobeydge cards. Ardshinbank  started to issue ArCa-MIR chip cards in Armenia (since September  2017), and a few days earlier, Ameriabank announced the start of  servicing MIR cards.

POST A COMMENT
Input digits     


News
Armenia to host  prestigious international wine competition  in 2026Armenia to host  prestigious international wine competition  in 2026
WANO experts get acquainted with production process at Armenian NPPWANO experts get acquainted with production process at Armenian NPP
Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan Armenia`s Cabinet approves Isakov-Arshakunyats road construction project in Yerevan 
Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund Armenia`s Cabinet approves allocation of $1mln to Asian Development  Fund 
AI Factory to become available to Armenian eco-startup environment - ministerAI Factory to become available to Armenian eco-startup environment - minister
Cooperation with Armenia will help lay foundation for AI development in region - NVIDIACooperation with Armenia will help lay foundation for AI development in region - NVIDIA
Armenia`s banking sector to tighten capital buffersArmenia`s banking sector to tighten capital buffers
Digitization of justice discussed in ArmeniaDigitization of justice discussed in Armenia
Team Group, NVIDIA, and Firebird Announce a $500 Million Megaproject to Build a Regional AI Supercomputing HubTeam Group, NVIDIA, and Firebird Announce a $500 Million Megaproject to Build a Regional AI Supercomputing Hub
Minister: $500 million  artificial intelligence plant to be  constructed in ArmeniaMinister: $500 million  artificial intelligence plant to be  constructed in Armenia
RA SRC Chairman, EEC Minister for Customs Cooperation discuss current  cooperation  RA SRC Chairman, EEC Minister for Customs Cooperation discuss current  cooperation  
Armenia to use space information for disaster risk managementArmenia to use space information for disaster risk management
In 2024, vegetable and fruit export from Armenia exceeded 144,000 tonsIn 2024, vegetable and fruit export from Armenia exceeded 144,000 tons
Ameriabank joins TOON EXPO to be held first time in MoscowAmeriabank joins TOON EXPO to be held first time in Moscow
"Plain and Simple": Financial Literacy with AraratBank
Deputy Economy Minister:  Out of 557 completed customs declarations for Armenian alcoholic beverages exporters, 70% have been accepted by the destination country`s customs Deputy Economy Minister:  Out of 557 completed customs declarations for Armenian alcoholic beverages exporters, 70% have been accepted by the destination country`s customs 
Hail damages 8,700 hectares of agricultural land - officialHail damages 8,700 hectares of agricultural land - official
Construction of five reservoirs planned in Armenia - minister Construction of five reservoirs planned in Armenia - minister 
Lower population growth in ArmeniaLower population growth in Armenia
Safe use of nuclear energy by Armenia discussed in Nice Safe use of nuclear energy by Armenia discussed in Nice 
Armenian trucks temporarily barred from entering Georgia Armenian trucks temporarily barred from entering Georgia
Central Bank to establish a regulatory framework for  crypto assets  sector within 1.5 year timeframeCentral Bank to establish a regulatory framework for crypto assets sector within 1.5 year timeframe
Martin Galstyan:  Armenian dram has weakened against US dollar in  terms of real effective rateMartin Galstyan: Armenian dram has weakened against US dollar in terms of real effective rate
CB Chairman on cases of financial fraud: Banks to extend moratorium  on credit obligations until court verdictCB Chairman on cases of financial fraud: Banks to extend moratorium on credit obligations until court verdict
Sinanyan: 70% of IGorts program participants remained in Armenia in recent years
Martin Galstyan: Non-interest income growth in Armenia`s banking  sector to continue in 2025Martin Galstyan: Non-interest income growth in Armenia`s banking sector to continue in 2025
Mher Grigoryan to take part in SPIEF-2025Mher Grigoryan to take part in SPIEF-2025
Zhanna Andreasyan: Compared to 2018, funding for science in Armenia  increased by 280%Zhanna Andreasyan: Compared to 2018, funding for science in Armenia  increased by 280%
Pashinyan discusses country`s tax policyPashinyan discusses country`s tax policy
Armenia`s foreign trade with EAEU decreasing, while increasing with EUArmenia`s foreign trade with EAEU decreasing, while increasing with EU
Tigran Khachatryan, Philip Morris International Regional President  discuss  potential areas for cooperationTigran Khachatryan, Philip Morris International Regional President  discuss  potential areas for cooperation
Armenia, EEC discussing prospects for cooperation in customs servicesArmenia, EEC discussing prospects for cooperation in customs services
RA State Revenue Committee reveals shadow turnover in Tsakhkadzor casino RA State Revenue Committee reveals shadow turnover in Tsakhkadzor casino 
Project of 11th station of Yerevan Metro approved Project of 11th station of Yerevan Metro approved 
Armenia`s industry in decline Armenia`s industry in decline 
23% decline in output of Armenia`s metallurgical industry 23% decline in output of Armenia`s metallurgical industry 
Wine output in decline in Armenia Wine output in decline in Armenia 
4.9% y/y increase in electric energy output in Armenia4.9% y/y increase in electric energy output in Armenia
Armenia`s income tax refund for Armenia`s income tax refund for "mortgage holders" expected to peak  in 2026 before gradually decreasing
EU updates airspace EU updates airspace "blacklist". European skies remain inaccessible  to Armenian airlines 
Exclusive fintech startup  launched in partnership with Converse Bank  - Superra application for transactions on secondary securities marketExclusive fintech startup  launched in partnership with Converse Bank  - Superra application for transactions on secondary securities market
Armenia`s foreign trade turnover  significantly decreased due to   sharp decline in  export and import of diamonds and goldArmenia`s foreign trade turnover  significantly decreased due to   sharp decline in  export and import of diamonds and gold
RA Ministry of Economy planning to expand investment instrumentsRA Ministry of Economy planning to expand investment instruments
All that glitters is not gold: Economy Minister continues to insist  on limited impact of gold re-export on GDPAll that glitters is not gold: Economy Minister continues to insist  on limited impact of gold re-export on GDP
Iran-Armenia power line project 80% finished - minister Iran-Armenia power line project 80% finished - minister 
Tehran hopes for commissioning of Iran-Armenia high-voltage line this  year Tehran hopes for commissioning of Iran-Armenia high-voltage line this  year 
Research is ongoing in Armenia to select model for new nuclear power  unit - ministerResearch is ongoing in Armenia to select model for new nuclear power  unit - minister
Head of RA State Revenue Committee on reasons for ZCMC removed from list of 1,000 major taxpayers Head of RA State Revenue Committee on reasons for ZCMC removed from list of 1,000 major taxpayers 
MP for indexation of salaries and pensions in ArmeniaMP for indexation of salaries and pensions in Armenia
Georgia bans import of large batch of flowers from ArmeniaGeorgia bans import of large batch of flowers from Armenia
Wildberries Director for International Business Development announces  opening of PRO WB Entrepreneurship Development and Support Center in ArmeniaWildberries Director for International Business Development announces  opening of PRO WB Entrepreneurship Development and Support Center in Armenia
USD, RUB transactions down in Armenia`s interbank foreign exchange market June 2 to 6, 2025USD, RUB transactions down in Armenia`s interbank foreign exchange market June 2 to 6, 2025
RA Minister of Finance,  KfW representatives discuss implementation  of major infrastructure projectsRA Minister of Finance,  KfW representatives discuss implementation  of major infrastructure projects
Expert: Sober risk assessment prompted suspension of launch of   Turkey`s Expert: Sober risk assessment prompted suspension of launch of   Turkey`s "largest gas hub" 
Minister: In 2025, it is planned to construct and restore a similar  number of roads as last yearMinister: In 2025, it is planned to construct and restore a similar  number of roads as last year
Armenian Deputy PM,  KfW representative discuss  implemented projects Armenian Deputy PM,  KfW representative discuss  implemented projects 
Potential for enhancing trade and economic relations between Armenia and Russia   discussed in YerevanPotential for enhancing trade and economic relations between Armenia and Russia   discussed in Yerevan
ADB mission travels to Armenia`s Syunik to examine project of north  section of Sisian-Kajaran motorway of North-South transport corridor ADB mission travels to Armenia`s Syunik to examine project of north  section of Sisian-Kajaran motorway of North-South transport corridor 
Minister of Economy: Within 5 days, 72 vehicles to depart from  Gezi terminal for RussiaMinister of Economy: Within 5 days, 72 vehicles to depart from  Gezi terminal for Russia
Gevorg Papoyan announces potential direct air route  between Yerevan and an Indian city Gevorg Papoyan announces potential direct air route  between Yerevan and an Indian city 
Read more
Exchange rates
12.06.2025
RUB4.79-0.08
USD383.480.23
EUR444.686.32
GBP521.113.91
CAD281.251.18
JPY26.720.31
CNY53.440.11
CHF472.215.91