The supervisor of the domestic payment network, Shaparak, says acquiring banks paid 87 rials per every 100,000 rials of transactions the eighth month of the calendar year to Nov 22.
This was seven rials lower than in the month before, when banks paid 95 rials for every 100,000 rials worth of transactions but five rials higher than the same month last year.
A review of the average value of transactions acquired by banks shows banks with higher number of small transactions obviously have higher costs.
Bank Sepah, the largest government-owned bank, paid 136 rials for every 100,000 rials of transactions during the month to November 22. Noor Credit Institution was next with 117 rials, followed by Parsian Bank and Qarzol- Hasanah Mehr Iran Bank, also a government lender, with 117 and 115 rials, respectively.
Karafarin Bank was the best performer among commercial banks paying 45 rials for 100,000 rials in transactions. Middle East Bank followed with 49 rials and Tejarat Bank and Sina Bank with 59 rials and 60 rials, respectively.
Shaparak said lenders need to be cost-effective and efficient in marketing POS devices if they want to cut costs. Almost one-third of the transactions made via POS terminals were each barely worth 50,001 to 250,000 rials. An estimated 52.4% of the total POS transactions were above 250,000 rials.
Shaparak data show that 81.65% of the transactions via POS terminals were worth 1 million rials or less. It said an estimated 3.73 billion retail transactions were processed by the electronic payment network in the eighth month of the calendar year to Nov 22.
These were worth 7,708.3 trillion rials ($21.83 billion) – up 0.59% in volume and 9.13% in value on the month before.
Market Share
Shaparak said four major banks still process almost 55% of payment transactions.
In said Bank Mellat had 17.85% of the electronic payment market in the month to Nov 22. Bank Sepah and Bank Melli, both state-owned, ranked next with 16.58% and 13.49%, respectively. Banks Saderat was next with 7.94% share.
Acquiring banks are financial institutions that offer merchant accounts to businesses. The special accounts are necessary for businesses to receive debit/credit card payments directly. Acquiring banks may also be referred to as merchant banks or acquirers.
Bank Keshavarzi, Tejarat Bank and Saman Bank were the other big names on the list.
Mellat also led in terms of the total value of acquired transactions with 17.92% share. Bank Melli and Bank Saderat came in with 13.19% and 11.56%, respectively.
As per Central Bank of Iran regulations, acquirer banks must pay transaction fees plus maintenance charges of payment instruments. Cardholders pay no fee for electronic transactions.
