On plastic market of Armenia, volume of non-cash transactions increased in Q1 2018 at 67.9% per annum

ArmInfo. In Armenia, the number of plastic cards increased in the first quarter of 2018 at 14.9% per annum - up to 1.785 million units, against the decline of 10.8% a year earlier.  Adequately, the annual growth in the total volume of plastic transactions from 0.8% in the first quarter of 2017 to 38.6% in the first quarter of 2018 was dramatically accelerated, making 440.6 bln AMD. This is evidenced by the data of the Central Bank of Armenia.

According to the source, the number of local ArCa cards grew 12.8% year-on-year to 591.6 thousand units, and international Visa and MasterCard - by 12.7% and 22.1%, respectively - to 633.7 thousand units and 514.8 thousand units, with the decline of other international cards (mainly HSBC cards, as well as AmEx and Diners Club) by 1.1% to 44.7 thousand units. A year earlier, in the first quarter of 2017 the number of ArCa decreased by 4.1% per annum, Visa by 28.6%, other international cards by 1%, with MasterCard growing by 16.5%.

According to the regulator, a sharp jump in the total volume of plastic transactions on the upward trajectory was due to the release of the annual dynamics of transactions on ArCa cards from the 3.5% decline to 14.1% growth and international cards - from a 69.8% decline on growth in 7 times, in parallel with what there was an acceleration of the increase in transactions on Visa cards from 0,7% to 26,9% and MasterCard - from 26,7% to 39,3%. Leadership in terms of transactions is held by Visa cards - 188.8 billion drams, second place - MasterCard - 123.6 billion AMD, third ArCa - 84.4 billion AMD, and the remaining 43.8 billion AMD - transactions on other international cards (HSBC, AmEx, DC).

In the total volume of plastic transactions, the share of non-cash transactions has increased over the past five years from 10.2% to 21.2% (compared to the first quarter of 2013), amounting to 93.4 bln AMD in the first quarter of 2018, which is due to a significant increase in Internet commerce and undertaken by banks such effective measures to encourage non-cash transactions like CashBack (refunds from purchases). The annual growth in the volume of non-cash plastic transactions, after accelerating the pace in I quarter of 2017 from 18.1% to 43.7%, continued to climb in I quarter of 2018 to 67.9%. Quarterly dynamics of this indicator showed a sharp yield of 17.7% growth from 16.6% decline in the same period of a year ago.

In the Armenian plastic market, the share of Visa in the total number of cards in the annual cut decreased from 36.2% to 35.5%, ArCa - from 33.8% to 33.1%, while the share of MasterCard increased from 27.1% up to 28.8%, and the remaining 2.5% (against 2.9% a year earlier) are other international cards (HSBC, AmEx, DC). In the total volume of plastic transactions, the dominant share is also held by Visa - 42.8% (against 46.8% in Q1 2017), MC - 28% (against 27.9% in Q1 2017), in the third place ArCa - 19.2% (versus 23.3% in Q1 2017), and the remaining 9.9% (versus 2% in Q1 2017) is the share of transactions on other international cards.

As of April 1, 2018, there were 7,939 POS-terminals in Armenia, of which 811 are located in head offices and branches of banks. In the annual section, the total number of POS-terminals increased by 11.2% or 799 units, against growth of 10.6% or 687 units a year earlier. Moreover, only for the first quarter of 2018 the number of POS-terminals increased by 8.7% or 636 units. There were 1478 ATMs on the above date with annual growth of 5.4% or 76 pcs, against a decline of 1.9% or 27 pcs  a year earlier. It is noteworthy that for the first quarter of 2018 the number of POS-terminals in banks and their branches grew by 14.1% or by 100 units, and in the annual section it decreased by 2.4% or 20 units (against growth of 6.8% or 53 units a year earlier), which can be caused by the withdrawal of four banks from the market by 2017 and the associated optimization of their post-terminal network by the banks with which they merged, as existing players already had their own extensive network of poses. 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 note, the Central Bank of Armenia acts as the majority shareholder of ArCa, ACBA-Credit Agricole Bank, Armeconombank and Ardshinbank are the major shareholders of the organization, and the remaining 13 banks own 2% of the shares. Through its own processing, HSBC Bank Armenia and VTB Bank (Armenia) operate on the card market. Only Armswissbank did not work on the plastic market, but becoming a member of the Armenian Card in the first quarter of 2017 and successfully completing negotiations with MasterCard for membership, he started issuing cards from March 2018.

To recall, 17 banks have been functioning in Armenia since 2017, after ProCredit Bank, BTA Bank-a, Areximbank-GPB Group and Armenian Development Bank joined the banking market in 2015-2016, which united with INECOBANK, Armeconombank, Ardshinbank and ARARATBANK, respectively.