Armenian government approves measures and procedures for cashback on  non-cash transactions using ArCa NPS cards

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%.