The FINANCIAL -- People’s Bank, one of the leading Georgian banks, with the highest number of branches, clients and plastic cards, signed a memorandum of cooperation with Georgian National Airlines, targeted at the creation of a joint co-brand for frequent air-travellers.
“People’s Bank and Georgian National Airlines are offering their clients an innovative co-brand - a plastic card entailing various services and advantages. While a product of this type is a novelty for Georgia, it is very popular in all developed countries of the world. We are proud to be the first to introduce the card, which will well-serve travellers’ needs, making travel much more comfortable,” declared Giorgi Goguadze, General Director of People’s Bank.
Avia Card is an international VISA Classic card. Term of the card is 2 years. Minimum balance on the card is not required. Avia Card gives access to payment services of approximately 7 million shopping and service centres throughout the world. The commission fee on international and local transaction is 0%. An overdraft of USD 250-3000 is available with a 24% annual interest rate. While abroad, card holders’ communal taxes will be paid automatically through direct debit.
“Our cooperation with People’s Bank has been very efficient since we combined our services and created a co brand which is a novelty for Georgia. This new product will enable more people to travel with national airways. The card allows an overdraft and offers a 5% discount on all our air tickets. An extra 5% discount will be provided if a family or student chooses to travels with us,” said Giorgi Kodua, the President of Georgian National Airlines.
“We chose People’s Bank because this bank holds a substantial share of the Georgian banking market. People’s Bank is not only oriented on the business sector, but also builds close connection with clients from all social backgrounds. This is very important for us, since we target a variety of different segments. More than 300.000 people hold a deposit account in People’s bank. Avia Cards will be issued to all these people.”
Avia cards will be offered at the offices of People’s Bank, as well as the offices of National Airlines and its partner tourist companies.
“People’s Bank has emitted approximately 850.000 plastic cards. We are controlling more than 60% of the Georgian plastic cards market. Georgian National Airlines also has a significant number of clients increasing day by day. Our mutual cooperation will significantly contribute to the development of our companies, enabling our clients to organize their travel simply and comfortably,” said Goguadze.
“People’s Bank is the largest emitter of plastic cards in Georgia. We take an individual approach with plastic cards and try to make them particularly attractive not only in terms of the design but also in terms of the service quality,” said Maia Kheladze, Head of the Plastic Card Department at People’s Bank.
“Although we are already offering a great variety of plastic cards we are planning to make them even more versatile and multipurpose. We think we have already established a more developed plastic cards department compared with all other Georgian banks and now we are trying keep up with all the latest tendencies on the world card market.”
According to Kheladze People’s Bank has emitted about 600.000 VISA plastic cards, including electron, classic, gold, platinum, and business cards. “We offer all possible types of cards to satisfy the needs of our clients. We have corporate and individual, credit and debit cards. Naturally salary cards are the most demanded.”
Making Standard VISA Electron at People’s Bank costs 5GEL/USD/EUR. The term of the card is 2 years. Annual Service Commission is free of charge. Minimum Balance is not required. The commission fee of international transactions is 0, 25%. Local transactions are free of charge. The commission fee for cash withdrawal is 0.50% at the branch office of People’s Bank and 2% at other banks. The commission fee for cash withdrawals from People’s Bank ATMs is 0.2%, and from other ATMs - 2%. Daily Limit of the Deal is 5 000 GEL, 2 500 USD/EUR.
“Social cards are free for pensioners, refugees, socially unprotected people, and individuals involved in the government support program. Social cards are being reemitted into visa electron which will allow card holders to expand the use of their cards. These people are not pampered with modern products, but Peoples’ Bank provides them with access to up to date services.”
Card holders get a 10% discount on medicines at PSP Chemist’s Shop when paying with a People’s Bank plastic card.
“We are offering our clients the unique chance to become designers of their cards. All they need to do is present a digital photo they would like to have on their plastic card, taken with at least 2 megapixel cameras. The Photo Card with the clients own design will be ready in three days.”
Commission fee of the photo card is GEL 45, USD/EUR 20. Minimal Balance is GEL 60, USD/EUR 30. The annual commission fee and opening card account are free of charge.
People's Bank installed POS terminals in prisons and provided prisoners with Visa Cards. Relatives and friends of the prisoners can transfer money to their accounts. The cards will be used in specialized stores of the prisons.
People’s Bank has created the Pupil’s Card for children above the age of 10. Pupil’s Card is a touch-less Visa card with a photo of the holder. The card has a special design and is linked to the parent’s card account. Pupils will be able to use the card on school territory alone and withdraw funds within the limits set by their parents in advance.
“The cards offer many advantages. Pupils will be able to enter schools only by taking the card near to a special control device; Handing over the card to another person and unsanctioned use is controlled (the photo on the card will show up on the school’s security screen, which rules out the possibility of a stranger entering the school’s territory); Parents will have the opportunity to learn at what time their children entered and left school, by SMS. Pupils’ card holders will be allowed to buy food only in school canteens; Card holders will be allowed to buy dietetic food alone if parents wish so; Parents will have the opportunity to set daily, weekly and monthly cash withdrawal limits and learn about the amount spent by your children by SMS. Pupil’s Card secures the use of the amount of money on the card account for the purposes it is designed for; It limits the purchase of cigarettes, drinks and other dangerous products; Prevents the circulation of cash among school students and cases of lending money, gambling and extortion. A memorandum of cooperation has already been signed with 200 schools to implement this project.”
People’s Bank also serves with its Teacher’s Card which similar to the Social Card provides a 10% discount on medicine, the Youth Card, with a 5-40 % discount available at 100 shopping and service centres in Tbilisi, Sportsmen’s Cards, State Employee Cards, Patrol Policeman’s Cards, and Railway worker’s Cards are also available.
According to National Bank of Georgia, development of the Georgian plastic card market is very dynamic. The total number of plastic cards emitted by Georgian commercial banks amounted to 1.8 million by October 1, which exceeds indices presented in the beginning of the year by two times. 95% of the plastic cards are debit cards.
VISA Card is the most popular, making up 72% of all plastic cards on the market. EURO CARD/MASTER CARD follows with 16%, while all other cards make 12%.
Volume of the commercial operations completed through plastic cards is increasing by 10% per month. 70% of these operations are completed through ATMs and 29% via post terminals. Only 1% goes to the internet. 85% of these operations were made via plastic cards emitted by commercial banks residing in the territory of Georgia. 5% - via the same cards but abroad. Approximately 9% of these operations were completed in the territory of Georgia by non-residents. The remaining 1% - via the internet.