Specific payment and settlement systems operating in Armenia
Beyond the broad definition of payment and settlement systems as a fundamental component of the financial system, there are specific payment and settlement systems that have been authorized to operate in Armenia. Below are the main payment and settlement systems operating in Armenia.
Electronic Payment System of the Central Bank of Armenia
The electronic payment system stands as a cornerstone within the interbank payment infrastructure of the Republic of Armenia. Its inception dates back to 1997, marking a pivotal moment in the country's financial landscape. The Central Bank of Armenia (CBA) assumes the dual role of operator and settlement bank while also taking responsibility for oversight, regulation, policy development, and ensuring the optimal functionality of the system. Operating in real-time gross settlement (RTGS) mode, the electronic payment system facilitates the swift and definitive settlement of interbank fund transfers, processing transactions continuously on a transaction-by-transaction basis. Remarkably, this system exclusively handles credit transfers, including interbank transfers under bank’s own obligation. Furthermore, there exists no limit on transaction amounts within this system, allowing for the seamless execution of both wholesale and retail payments. This flexibility underscores its adaptability and its capacity to cater to a wide spectrum of financial needs within the Armenian economy.
Electronic payment system also facilitates settlements for transactions conducted through ancillary systems, including the ArCa card payment system, ArcaPay fast payment system, and Armenia securities exchange.
The main participants of the Electronic Payment System are primarily Armenian commercial banks, along with operators of ancillary systems like the ArCa card payment system, Ministry of Finance, international banks.
ArCa Unified Card Payment System
The ArCa card payment system serves as the vital infrastructure in Armenia, facilitating the majority of card transactions in the country. "ArCa" system was established in 2001 through the collaboration of Armenian commercial banks and the Central Bank of Armenia. The system's operator is "Armenia Card" CJSC. The system operates on a deferred net settlement basis, where transactions are reconciled and settled collectively at the conclusion of a predefined settlement cycle. Final settlement is facilitated through the Electronic Payment System using correspondent accounts held with the Central Bank of Armenia by participating banks. The participants of the system are Armenian banks actively engaged in card payment operations.
Within the system, national ‘’ArCa’’ cards are issued. Moreover, the system operates a processing and clearing center, which handles the processing of local transactions not only with ArCa cards but also with international cards such as VISA, MasterCard, American Express, Diners Club, and others.
For further information about the ArCa system, please visit the following link.
Government Securities Accounting and Settlement System of the Central Bank of Armenia
The Central Bank of Armenia is the central securities depository and securities settlement system operator for the government securities issued in Armenia. The system is multi-tier: banks, other investment service providers and the Central Depository of Armenia are sub-custodians in the system. Securities holders may hold their securities either directly on a securities account with a sub-custodian bank or other investment service provider or on a securities account opened in the system of the Central Depository of Armenia (for more details see below).
Unified Securities Accounting and Settlement System of the Central Depository of Armenia
The Central Depository of Armenia is the central securities depository and securities settlement system operator for the corporate securities. It also serves as a sub-custodian for the government securities. The system is multi-tier: banks and other investment service providers are sub-custodians in the system. Securities holders may hold their securities either directly on a securities account with the Central Depository of Armenia or on a securities account opened at a sub-custodian bank or other investment service provider. For more details please visit the following link.