CBA: Turnovers of growth in the plastic market of Armenia accelerated  sharply by October 2018 - the number of cards to 17.9%, transactions  to 24.5%

ArmInfo. In Armenia, the number of plastic cards increased by October 1, 2018 by 17.9% per annum - to 1.928 million units, against a decline of 7.6% a year  earlier. The annual growth of the total volume of plastic  transactions from 7.7% in the first 9 months of 2017 to 24.5% in the  first 9 months of 2018 has sharply accelerated to this, reaching 1.4  trillion drams. This is evidenced by the data of the Central Bank of  Armenia.

According to the source, the number of local ArCa cards increased by  14.4% per year to 612.9 thousand, while international Visa and  MasterCard - by 26.8% and 12.8% respectively - up to 739.7 thousand  pcs. and 531.8 thousand units, with a decline of other international  cards (mainly HSBC-cards, as well as AmEx and Diners Club) by 3.4% to  43.2 thousand units. A year earlier, in the third quarter of 2017,  the number of ArCa increased by only 0.6% per annum, MasterCard - by  15%, with a decline of Visa by 25.3% and other international cards by  2.9%.  According to the regulator, a sharp jump in the total amount  of plastic transactions along an upward trajectory was due to the  release of the annual transaction dynamics for ArCa cards from a 4.7%  decline by 11.1% growth and international cards from a 43.5% decline  by 44.1% growth, in parallel with which there was an acceleration in  the growth of transactions with Visa cards - from 6.5% to 25.7% and  MasterCard - from 29.7% to 32.2%. Leadership in terms of transaction  volume is kept by Visa cards - 656.9 billion drams for the first 9  months of this year, the second place is MasterCard - 415.6 billion  drams, on the third ArCa - 277 billion drams, and the remaining 23.2  billion drams are transactions on other international cards (HSBC ,  AmEx, DC).

In the total volume of plastic transactions, the share of non-cash  transactions increased over the past five years from 9.5% to 21.2%  (compared to the same period of 2013), amounting to 280.3 billion  drams in the first 9 months of 2018, which was due to a significant  increase in Internet commerce and banks taking such effective  measures to encourage non-cash transactions as CashBack (return of  money from purchases). The annual growth in the volume of non-cash  plastic transactions, after accelerating the pace for 9 months of  2017 to 2.5 times, slowed the rise for 9 months of 2018 to 47.8%. The  quarterly dynamics of this indicator showed a slowdown in growth from  22% in the second quarter to 14.3% in the third quarter, against a  deterioration in the dynamics in the third quarter of 2017 from a 27%  increase to a 10.1% decline.  In the Armenian plastic market, the  share of Visa in the total number of cards in annual terms increased  from 35.7% to 38.4%, while the share of MasterCard decreased from  28.8% to 27.6%, ArCa - from 32.8% up to 31.8%, and the remaining 2.2%  (vs. 2.7% a year earlier) are other international cards (HSBC, AmEx,  DC). In the total amount of plastic transactions, the dominant share  is also held by Visa - 47.9% (against 47.4% for 9 months of 2017), in  second place is MC - 30.3% (against 28.5% for 9 months of 2017), on  the third ArCa - 20.2% (against 22.6% for 9 months of 2017), and the  remaining 1.7% (against 1.5% for 9 months of 2017) is the share of  transactions on other international cards.

As of October 1, 2018, there were 8476 POS-terminals in Armenia, of  which 799 are located in the head offices and branches of banks. In  annual terms, the total number of POS-terminals increased by 17.1% or  1237 units, against a growth of 6.5% or 445 units. a year earlier.  Moreover, only in 9 months of 2018 the number of POS-terminals  increased by 16.1% or 1173 units. ATMs on the above date, there were  1,487 units. with an annual growth of 6.1% or 86 units, against a  decline of 3.9% or 57 units. a year earlier. It is noteworthy that  for the first 9 months of 2018, the number of POS-terminals in banks  and their branches increased by 12.4% or by 88 pcs., And in annual  terms - by 3.8% or 29 pcs. (against the growth of 1.6% or 12 units a  year earlier). The number of trade / service points where ATMs or POS  terminals are installed, since 2015, the Central Bank has stopped  publishing.

Note that the majority shareholder of ArCa is the Central Bank of  Armenia, then the major shareholders of the organization are  ACBA-Credit Agricole Bank, Armeconombank and Ardshinbank, and the  remaining 14 banks each own 2% of the shares. Through their own  processing, they work in the HSBC Bank Armenia and VTB Bank (Armenia)  card market. Only Armswissbank did not work in the plastic market,  but having become a member of the Armenian Card in the first quarter  of 2017 and successfully completing negotiations with MasterCard for  membership, from March 2018 it started issuing cards. As a result,  all 17 banks operating in Armenia operate in the card market.