"In 2026, I expect the payments sector to continue moving toward consolidation, clearer regulation, and a much stronger focus on operational resilience. The industry is maturing. Merchants are prioritising stability, visibility, and risk management over experimental models, and providers will be expected to deliver consistency at scale," Christia Evagorou Papamichael, the Deputy Group CEO of payabl. suggests.
Speaking within the framework of the IN Business Forecasting 2026 series of interviews, Evagorou Papamichael turns the spotlight on how she expects the payments sector to evolve in the new year.
She also shares her expert opinion on the prospects of wider economy of Cyprus, talks about the mergers and acquisitions trend and also reveals some of what to expect in terms of payabl.'s growth and expansion strategy in 2026.
How do you expect the Cyprus economy to perform in the new year and what are its prospects? Which risks do you consider the most significant and how can they be addressed?
The Cyprus economy has remained relatively stable, even through a challenging external environment. Going into 2026, I expect steady, moderate growth supported by services, digitalisation, and continued investment in regulated industries. The fundamentals are sound, but the outlook will depend heavily on how global conditions evolve.
For me, the most significant risks are external: persistent geopolitical uncertainty in the wider region, inflationary pressure that keeps costs elevated, and the potential slowdown in major European markets. These factors affect a small, open economy quickly.
Addressing these risks requires a focus on resilience, improving digital capabilities, strengthening regulatory clarity, and encouraging investment in skills and innovation. Cyprus has the foundations to remain competitive, but long-term stability comes from consistency: predictable regulation, operational reliability, and an environment where businesses can plan with confidence.
How do you expect your company’s sector to move in 2026? What major trends or shifts do you anticipate and what do you see as the key challenges?
In 2026, I expect the payments sector to continue moving toward consolidation, clearer regulation, and a much stronger focus on operational resilience. The industry is maturing. Merchants are prioritising stability, visibility, and risk management over experimental models, and providers will be expected to deliver consistency at scale.
A few trends stand out. First, cross-border complexity will increase as Europe aligns new regulatory frameworks and introduces new instant-payment expectations. Second, merchants will demand unified views of their financial operations, moving away from fragmented tools and toward platforms that bring acquiring, payouts, and risk management together. And third, fraud and compliance pressure will rise, requiring better data, faster response times, and more robust controls.
The key challenge for the sector is maintaining reliability while complexity grows. Increasing regulation, higher consumer expectations, and more sophisticated fraud patterns mean providers need robust infrastructure, transparent reporting, and disciplined operational processes. The companies that will lead are those that can scale without sacrificing stability, ensuring that, even as volumes grow and rules change, merchants remain in control of their money flow.
A strong trend taking root in the Cyprus business landscape is mergers and acquisitions. Do you expect this trend to intensify in your own sector?
M&A activity is increasing across many sectors in Cyprus, and we see a similar pattern globally in payments. The sector is maturing, and consolidation is a natural outcome when companies need scale, stronger infrastructure, and clearer regulatory footing.
In our industry, I expect this trend to continue, not necessarily through very large acquisitions, but through targeted moves that strengthen product depth, licensing capabilities, and regional reach. Payment providers that want to compete effectively will look for partners that complement their strengths, whether in technology, compliance, or specialised vertical expertise.
At the same time, consolidation brings higher expectations. The companies that succeed will be those that integrate well, maintain stability during transitions, and offer merchants a unified, reliable experience. Growth for growth’s sake is no longer the priority. What matters is whether consolidation results in better control, transparency, and operational resilience for merchants.
For us, the focus remains on building robust infrastructure and supporting merchants at scale, with or without market consolidation.
What should we expect in terms of your organisation’s growth and expansion strategy in 2026? What actions do you plan to take in this direction?
Over the past five years, payabl. has grown from a team of 30 to more than 300, driven by the expansion of our product stack and the needs of the merchants we support. In 2026, our growth strategy continues along the same trajectory: strengthening our operational capabilities, expanding our footprint across Europe, and scaling the unified platform that brings acquiring, POS, business accounts, and payouts together.
In Cyprus, our new office provides the infrastructure to support that growth, but our expansion is broader. We are investing in teams, technology, and processes that allow us to serve merchants across multiple regions with consistency and reliability. This includes deepening our online acquiring offering, accelerating the rollout of our POS solution, and continuing to develop payabl.one as a single control layer for financial operations.
The focus for 2026 is disciplined, sustainable expansion: building systems that stay stable at scale, enhancing visibility and control for merchants, and strengthening the operational backbone that supports growth across all markets we serve.
The new year marks the implementation of the tax reform, coming 22 years after the previous one. How do you expect it will affect the Cyprus economy, businesses, and the attraction of foreign investment?
A comprehensive tax reform after more than two decades is an important step for any economy. The impact on Cyprus will depend on how clearly the measures are communicated and how consistently they are applied. In principle, a modernised, transparent tax framework can support stability, improve predictability for businesses, and strengthen the country’s long-term competitiveness.
For local companies, the key factor will be clarity. Businesses need to understand how the new rules affect planning, compliance requirements, and operational costs. The more streamlined and predictable the framework is, the easier it becomes for companies to make long-term decisions.
For foreign investors, consistency and transparency matter more than specific rates. What investors look for is a clear regulatory environment, reasonable administrative friction, and the confidence that rules will not shift unexpectedly. If the reform delivers simplification and reinforces trust in the system, it can strengthen Cyprus’ position as an attractive jurisdiction for high-value industries.
Overall, the reform is an opportunity to enhance the country’s credibility and reduce uncertainty, provided implementation is smooth, communication is clear, and businesses have the guidance they need during the transition.
