78 PLASTIC CARDS FALLS AT SHARE OF EVERY 1,000 RESIDENTS OF ARMENIA

ARKA
13/09/2007 18:09

YEREVAN, September 13. /ARKA/. 78 plastic cards falls at share
of every 1,000 residents of Armenia as of the end of June 2007,
i.e. conditionally every 13th resident of the country had a plastic
card.

According to the analysis of ARKA Agency based on the data of the
Central Bank of Armenia and National Statistical Service, the previous
year only 55 plastic card fell at share of every 1,000 residents or
every 18th resident was a plastic card holder.

If this dynamics of increase in the number of cards is projected and
extension of services and dynamics of the population is considered,
then 90 cards is to fall at share of every 1,000 residents or every
11th resident of Armenia will have a plastic card by the end of 2007.

Based on the same dynamics, by the end of 2008 every 9th citizen can
become a card holder and about 115 cards will fall at share of every
1,000 citizens.

Having in mind extension of the range of services and ongoing
introduction of salary projects and new card instruments (particularly
for money transfers), as well as the increasing trend toward the
growth of card business under toughening competition conditions,
the further growth of this indicator can be forecasted.

According to CBA, as of July 1 2007 250,766 plastic cards were in
circulation in Armenia, including 113,445 local "ArCA" cards (45.24%
of the overall number), 104,102 (or 41.51%) Visa International
cards, 16,003 (or 6.38%) Master Cards and 17,216 (or 6.87%) other
international cards.

As compared with the beginning of 2007, the number of plastic cards
increased 7.73% or by 18,004 cards in Armenia. The number of cards
increased by an average of 18-20,000 cards every quarter.

Consequently, the number of plastic cards may exceed 370,000 by the
end of 2007.

Yet, plastic cards are not that widely used in Armenia as in other
countries. Particularly, in a number of foreign countries with
transition economy an average of 40 plastic cards falls at share
of every 100 residents, the indicator exceeds 100 in many developed
western countries.

In Russia the number of banking cards exceeded 92mln by the end of
June. If this number is compared with the number of population in
the Russian federation, then every second resident of Russia is a
"conditional" card holder and 648.3 cards falls at share of every
1,000 population. It is too early to speak of such an indicator in
Armenia if no essential spurt is recorded in the sphere. Under the
current circumstances, the number of cards per every 1,000 population
may exceed only 300 by the end of 2015. ($1= AMD340.10).