Armenia is currently going through an important transition period – from cash to non-cash payments. Such changes, as Tigran Parseghyan, the marketing director of EasyPay, noted in an interview with NEWS.am Tech, are, of course, very important for the development of the country, but they also bring with them certain problems and potential shocks, for the mitigation of which effective and competent risk management will be of decisive importance.

What to expect in the next 5 years?

During an interview at the Silicon Mountains Shirak tech summit, Parseghyan noted that he believes the digital payments landscape in Armenia will change significantly in the next five years.

The specialist’s key forecasts include the following changes:

• Improved data protection: Increased attention will be paid to developing more robust systems to protect personal data. This is important to build trust and encourage wider adoption of digital payment methods.
• Inclusive Participation: The digital payments ecosystem will become more inclusive, attracting people from all walks of life. Improving financial literacy will play a key role in this process, helping to bridge the gap between different demographics.
• Global player participation: As the digital payments space develops in Armenia, the participation of global financial and fintech players will increase. Companies like Visa and Mastercard are already present in the country, but the environment needs to become even more attractive from a business perspective to maintain their interest.

According to Parseghyan, today the digital payments sector in Armenia is already highly competitive and has a level of development comparable to Europe. There are more than six licensed payment organizations and 18 banks operating in the country, which indicates that the market is oversaturated. Despite this, private sector investments continue to drive development, which indicates sustainable growth and innovation in this sector.

As for the challenges in the space, the regulatory framework remains a challenge for stakeholders in the digital payments ecosystem. Any changes in the rules may create difficulties for the players in the space, but on the other hand, these changes, according to Parseghyan, are necessary for progress.

“The key is to ensure that all parties are heard in the regulatory development process. Such an inclusive approach can help allay concerns and create a regulatory environment that is conducive to economic growth,” the expert noted.

Regional infrastructure

Silicon Mountains Shirak was dedicated to the topic of IT development in the regions of Armenia, and Tigran Parseghyan took part in a panel discussion on investments in the regions. Currently, EasyPay does not have regional branches, but payment acceptance terminals operate in many cities of Armenia. According to Parseghyan, the company currently has more than 4,000 terminals, about half of which are located in different regions of Armenia, and also has a simple online wallet that can be accessed from anywhere in the country. All this, according to him, can contribute to increasing financial literacy in the regions of the country and the introduction of digital transactions even without additional investments.

However, the inequality in infrastructure between Yerevan and the regions, according to the specialist, remains a serious problem. Only 20% of the company’s users live in the regions, the rest are in the capital, and this, according to Parseghyan, highlights the need to improve the infrastructure to support digital payments. Initiatives to improve regional infrastructure can contribute to wider adoption of new technologies and their inclusiveness.

A look into the future

The future of digital payments in Armenia depends on creating an environment that all players – local and global – find attractive to operate in. This means continuous development, addressing regulatory challenges, and improving financial literacy. By doing so, Armenia can ensure a robust, inclusive, and innovative digital payments ecosystem that benefits everyone, Parseghyan noted.

According to him, Armenia is on the threshold of a digital payments revolution. By correctly addressing the challenges of the transition period and wisely using technological advances, the country can create a sustainable, inclusive and promising financial environment that is beneficial for business, the country and users.

Silicon Mountains Shirak forum was held on July 4 in Gyumri. The event was organized by UEICT with the support of the Ministry of High-Tech Industry of Armenia. The Platinum Partner of the forum is Unicomp, the Fintech Partner is EasyPay, the Tech Partner is Ucom, the Silver Partners are Synopsys and Ovio. Regional and Youth Representation Partner is the Gyumri Technology Center implemented by the Enterprise Incubator Foundation, and the media partner is NEWS.am Tech. 

Source: https://tech.news.am/