Armenia sees 75% growth in e-commerce transactions

PanARMENIAN.Net - E-commerce turnover in Armenia grew by almost 75% in 2024, according to statistics published by the Central Bank.

Last year, the total turnover reached 972.5 billion drams, compared to 556.8 billion drams in 2023 (approximately 1.418 billion USD).

The ratio of domestic to international orders in 2024 was 77% to 23%. Local transactions were largely driven by online orders for food and taxis, according to Sputnik Armenia.

Despite the rise in international orders, Armenian buyers have faced higher customs duties since April 1, 2024, as the duty-free online shopping threshold was halved to align with Eurasian Economic Union (EAEU) standards.

Both individuals and small-to-medium businesses, including mobile device and clothing retailers, as well as resellers, contributed to local and international order volumes.

A significant increase was recorded in transactions made with domestic bank cards, including ArCa-Mir cards, with total turnover rising by 83% to 70.4 billion drams. However, these cards were rarely used for online purchases outside Armenia. ArCa’s market share remained low, growing from 9.8% to 10% in 2024.

Visa and Mastercard transactions also saw notable growth. Transactions made with Armenian bank-issued Visa cards reached 680.8 billion drams, marking a 70% increase, while Mastercard transactions grew by 88%, reaching 213.3 billion drams.

In contrast, online purchases made with Mir cards dropped sharply from 1.736 billion drams to just 85 million drams (excluding ArCa-Mir cards). Since April 1, 2024, most Armenian banks, except VTB Armenia, have stopped servicing Mir cards due to Western sanctions.

E-commerce volume calculations are based on transactions processed through virtual POS terminals for goods and services payments.