Tuesday, February 5 2019 13:02

ArmInfo. In Armenia, the number of plastic cards increased in 2018 by 18% to 2,024 million units, against a 9.2% increase in 2017. The y-o-y growth of the total volume  of plastic transactions to 22.6% in 2018 from 11.8% in 2017 to 1.933  trillion drams has accelerated adequately. This is evidenced by the  data of the Central Bank of Armenia.

According to the source, the number of local ArCa cards increased in  2018 by 11% to 629 thousand units, Visa - by 32.5% to 806.3 thousand  units, MasterCard - by 10.5% to 545.7 thousand amid the decline of  other international cards (mainly HSBC-cards, as well as AmEx and  Diners Club) by 5.4% to 43.1 thousand. A year earlier, in 2017, the  number of ArCa increased by 8.7%, Visa - by 3.6%, MasterCard - by  18.7%, with a decline of other international cards by 0.3%.

According to the regulator, the upward trend in the total volume of  plastic transactions in 2018 was due to an increase in Visa card  transactions from 10.6% to 24.6%, the change of ArCa card  transactions from the 1.8% decline to 9.5 % growth, with a sharper  change of trend of transactions on other international cards from  30.5% decline to 37% growth, against the background of the slowed  growth in transactions on MasterCard cards from 32.6% to 28.7%.  Leadership in terms of transaction volume is kept by Visa cards -  931.7 billion drams, MasterCard is in the second place - 581.8  billion drams, ArCa is in the third place - 388.2 billion drams, and  the remaining 31.1 billion drams are transactions on other  international cards (HSBC, AmEx, DC) .

In the total amount of plastic transactions, the share of non-cash  transactions has increased over the past seven years from 7.3% to  20.5%, reaching by the end of 2018 -395.9 billion drams, which is due  to a significant increase in Internet commerce and such effective  measures taken by banks to encourage non- cash transactions like  CashBack (refund from purchases). The y-o-y growth of non-cash  plastic transactions, after a slowdown in growth in 2017 from 32.3%  to 23.1%, in 2018 accelerated sharply to 47.2%. Quarterly dynamics of  this indicator showed sharp drops: a decline of 2.3% in the first  quarter was replaced in the second quarter by 22% growth, slowing  down in the third quarter to 14.3% followed by a slowdown in the  fourth quarter to 6.9%. A year earlier, in 2017, quarterly dynamics  was similar only in Q1 and Q2 - 16.6% decline changed to 26.9%  growth, in Q3 changing to 10.1% decline with 25% growth in Q4.

In 2017, in the Armenian plastic market, the share of Visa in the  total number of cards increased from 35.5% to 39.8%, while the share  of ArCa decreased from 33.1% to 31.1%, MasterCard's share - from  28.8% to 27%, and the share of other international cards (HSBC, AmEx,  DC) - from 2.7% to 2.1%. In the total amount of plastic transactions,  the dominant share is also held by Visa - 48.2% (vs. 47.4% in 2017),  in second place is MC - 30.1% (compared to 28.7% in 2017), in the  third ArCa - 20, 1% (versus 22.5% in 2017), and the remaining 1.6%  (versus 1.4% in 2017) is the share of transactions on other  international cards.

As of January 1, 2019, there were 8796 POS terminals in Armenia, of  which 783 are located in the head offices and branches of banks. In  y-o-y terms, the total number of POS-terminals increased by 20.4% or  1,493 units, against a growth of 4.8% or 332 units in 2017. There  were 1502 ATMs on the reported period with a y-o-y growth of 3.6% or  52 units, against a growth of 4.3% or 61 in 2017. It is noteworthy  that in 2018 the number of POS-terminals in banks and their branches  increased by 10.1% or 72 units, against a decline of 14% or 116 units  in 2017.  To recall, 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. HSBC Bank Armenia and  VTB Bank (Armenia)work on the card market through their own  processing. 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, in March 2018 it started issuing cards. As a result, all  17 banks operating in Armenia operate in the card market.