International payment system Mastercard is changing the rules of the game worldwide. David Zgudadze, Vice President and Regional Director of Mastercard for Georgia and Armenia, spoke with news agency ARKA about the company’s plans to further develop biometrics and digital security in Armenia and the bonuses that will become available to Armenian Mastercard holders in the coming years.
- What new infrastructure, partnership, and technology projects are being planned by Mastercard in Armenia in the upcoming 1-2 years?
- We are primarily focused on developing new products together with Armenian Card. Over the next few years, we will be introducing new technologies related to biometrics that reduce risks in transactions and purchases not only in physical spaces but also in e-commerce.
Over the next five years, we aim to completely remove card data from the system. This way, when making purchases, users won’t have to worry about their person data being used for fraudulent purposes. These are our main plans for Armenia.
We already have an employee on site. Going forward, we intend to increase our local resources in order to implement more projects in Armenia and provide more significant support to the financial sector.
— You previously said that Mastercard is changing the “rules of the game.” What does that entail?
— We understand that each country has its own dynamics, and it’s better to cooperate than to compete. That way, we can focus on creating additional value, rather than thinking that everything depends solely on us and that there are no alternatives.
— Are there any statistics on the number of Mastercard cardholders in Armenia? What market share do they hold among all payment systems?
— Currently, we hold 25% of the Armenian market.
— Are there any plans for new patrnerships with Armenian banks, or for the introduction of new loyalty programs and bonuses?
— Yes, of course. We want to support tourism as much as possible, as we see great potential in it. We’ve launched a pilot project in Georgia and want to implement a similar project in Armenia. The idea is to provide tourists visiting Armenia with benefits when paying with a Mastercard. The same is planned for Armenian Mastercard holders, so they can receive discounts when traveling internationally. The first step is to cover purchases made in Georgia using Armenian MasterCards. We’ve created a page where people can view discounts at hotels, restaurants, and so on.
We’re primarily focused on this right now, but in a broader sense, we understand that as a global company, we can allow customers to enjoy not only local but also global benefits. Local initiatives are usually associated with a specific bank that understands its customer base better, whereas we can create value internationally.
— Does Mastercard plan to introduce new innovations and technologies in Armenia?
— Yes, of course. There are two main factors. First, the legislative framework: if a country’s regulations allow for the implementation of new technologies, we first assess their legality. Second, the openness of the market: is it prepared for the implementation of this technology? If both conditions are met, we quickly launch the innovation—as we did, for example, with Apple Pay and Google Pay. As soon as it became clear that the technology could be implemented without restrictions, we did so immediately.
— What are the specifics of the Armenian market for MasterCard?
— The Armenian market, in my opinion, is very competitive. There are many financial institutions actively developing here, and competition will only intensify. This is, in fact, a positive development. Competition encourages companies to create more value for customers and implement new technological solutions. In this context, we can also bring something new to the market—something that will be useful, valuable, and accessible to Armenian cardholders.
