Payment and settlement system
A payment system is a set of instruments, networks, rules, procedures and institutions that facilitate the transfer of money between individuals, businesses, and government. The securities settlement system enables securities to be transferred and settled by book entries according to a set of predetermined multilateral rules. Collectively, these are referred to as payment and settlement systems.
Payment and settlement systems are crucial for the financial sector and economic stability, as they facilitate transactions by enabling the exchange of goods and services through a convenient and secure way for parties to settle their financial obligations, enable international money remittance, facilitate tax, social, and other public payments, conduct settlements for transactions within the financial market, promote financial inclusion, and drive innovation.
In Armenia, payment service providers offer a wide range of services that cater to diverse customer needs and preferences. Customers enjoy the flexibility to conduct transactions through a multitude of channels, including traditional bank branches and payment cards, as well as modern avenues like mobile and internet banking, e-money, and QR technologies. To facilitate this wide range of services, banks and payment institutions utilize distinct mechanisms, procedures, and collaborative efforts.
This section provides information on:
- Specific payment and settlement systems operating in Armenia
- Main payment service providers of Armenia
- Primary payment instruments/methods and common channels used in Armenia.
Additionally, the core functions of the Central Bank of Armenia are outlined. According to the Law "On the Central Bank of the Republic of Armenia", the establishment and development of efficient payment and settlement systems are essential objectives of the Central Bank. This strategic focus emphasizes the bank’s commitment to developing a robust infrastructure that delivers diverse, flexible services aligned with global standards. To achieve these goals, the Central Bank performs several critical functions:
- Operation of Payment and Settlement Systems and Provision of Payment Services
- Development of Payment and Settlement Systems
- Regulation of the Payment and Settlement systems and Payment Service Providers,
- Supervision of Payment Service Providers
- Oversight of Payment and Settlement Systems
By executing these functions, the Central Bank is dedicated to ensuring the smooth operation of payment and settlement systems, thus reinforcing the stability and resilience of Armenia's financial landscape.