ArmInfo. On December 25, the Armenian government approved measures and procedures for cashback on non-cash transactions using ArCa National Payment System cards. Starting in 2026, cardholders will receive a 2% cashback. Pensioners and individuals receiving benefits will also receive an additional 2% on non-cash purchases when paying with an ArCa card, in addition to the already established 20% cashback.
As stated by RA Minister of Finance Vahe Hovhannisyan, the main goal of the measure is to encourage non-cash payments and expand consumer knowledge of modern financial technologies. Essentially, for beneficiaries of the program, a number of goods and services will become 2% cheaper, he added.
The program is currently in pilot mode and will be implemented from January to December 2026. General cashback on ArCa cards will be calculated and paid from February 2026 to January 2027 inclusive (by the 25th of the month following the expired reporting period).
"Cashback will be paid on non-cash purchases exceeding 1,000 drams (slightly over $2.50 - ed.), with a maximum of 6,000 drams (over $15 - ed.) per transaction and 60,000 drams (approximately $150 - ed.) per month," the Finance Minister stated.
The Minister emphasized that cashback will not be awarded on utility and communication payments, payments to the municipal and state budgets, transactions made at high-risk payment points, transactions in favor of financial institutions, any gift cards, or purchases using cashback already received.
The refund amount is determined proportionally: 1% from Armenian Card CJSC, a partner participating in the event, and 1% from the state budget. Income tax arising from Armenian Card CJSC's allocations is also paid from the state budget.
However, given that the funding provided by Armenian Card CJSC for the program is limited to 3.5 billion drams, if the expenses incurred in providing refunds during the program exceed this amount, the program will be fully financed from the state budget.
According to Issue N32 of the analytical review "Armenian Banks in the Card Business," prepared by ArmInfo Investment Company, there were 4.7 million cards in the Armenian plastic card market as of October 1, 2025, a 15% increase over the past year. Local ArCa cards accounted for only 16.3%, or 770,302,000 units, and their number has been declining by 5% annually for the second year running. This decline is partly due to the process that began two years ago, when two banks (IDBank, effective September 2023, and Unibank, effective January 2024) discontinued issuing local cards. Unibank, after holding the lead in the number of national cards for many years, abruptly abandoned them in favor of international systems. Other banks also saw little growth in local cards, despite their low prices and fees, and a stable market niche among the elderly and those receiving pensions and benefits.
In this situation, Armenian Card, in order to take local ArCa cards to a new level of technological functionality, has begun implementing high-tech solutions one after another. These include: Starting in 2024, the ability to accept ArCa card payments online via the EMV 3DS 2.0 domain of the Armenian Card EPS, ensuring the security of online ArCa card payments for all Armenian banks, regardless of the platform where they are processed; Starting in November 2024, the ArCa Pay system for instant express payments; and starting in October 2025, the ArcaQR system for everyday payments using a QR code directly from a bank account. The Central Bank, in turn, has introduced a requirement to ensure interoperability for payments or transfers using QR codes (a single QR code image installed by banks and payment organizations at points of sale and/or services) since October 2025.
It's worth noting that Armenia's National Payment System (NPS), Armenian Card (ArCa), has been providing technological support to banks for over 25 years, including card processing, payment solutions, and interbank services. ArCa also operates the ArcaPay instant transfer system and the recently launched unified national QR solution, ArcaQR. Armenian Card shareholders include the Central Bank of Armenia (55%) and 15 of the 17 banks operating in Armenia (excluding Iran's Mellat Bank and VTB Bank Armenia), which equally distribute the remaining 45%.
