Electronic payments processed by Iran’s domestic payment network Shaparak grew 14.8% in the first half of the current fiscal year (started March), compared to the same period last year.
According to the Central Bank of Iran data seen on its website, the network processed an estimated 21.8 billion transactions during the period. The number of transactions was 19.1 billion in the first half of the previous fiscal year.
The highest number payments were logged in the sixth month of the current fiscal year (ended Sep 22) at 3.8 billion.
Electronic payments posted the highest annual growth in the fifth month to August 22 with 17.52%, followed by the second month (ended May 22) with 17.4%, and the first month 13.45%.
Transactions showed annual growth of 26% during the six months -- from 31,881 trillion rials ($96.6 billion) last year to 40,192 trillion rials ($121.7 billion) this year.
The highest collective monthly value of transactions was seen in the third month to June 22 at 7,251 trillion rials ($21.97 billion).
In terms of the value, e-payments posted the highest annual growth in the second month to May 22 at 39.07%, followed by the first month at 32.45% and the third month 31.1%.
POS Devices
CBI data showed the number of payment gateways. There were almost 7.175 million active payment gateways across the country by the end of H1. It was 7.79 million in late March when Iranian year begins, and 7.46 million by the end of the first half of the last fiscal year.
POS terminals are the most widely e-payment tools in Iran. However, the last report published by Shaparak shows that not all devices are used. Almost 10.4% of the POS devices processed less than 60 transactions in two months.
Unlike other countries, retailers in Iran do not pay the cost of purchasing and maintaining POS terminal devices. Banks receiving and making payments pay the bulk of the fees because when a payment is made with a bank card, the bank receiving the payment has to pay a fee to the bank whose card has been used.
This is over and above the amount banks pay as rent and support fees for each POS device to PSPs. Besides, a portion of the fee, 500 rials per transaction, goes to companies in charge of maintaining the payment network.
The decision (not to charge retailers) was made years ago, when the CBI started promoting debit cards, and it has been a long pending e-payment controversy.
According to available data, acquiring banks paid 98 rials per every 100,000 rials of transactions, during the said month.
Apart from its negative impact on bank costs, not charging retailers is seen as a key influencing factor behind the unnecessary increase in the number of unused POS devices.
Shaparak said under the current practice, retailers, PSPs and banks are unconcerned about the nonuse of the devices, merely trying to increase the number of devices linked to their bank accounts.
