Cypriots are increasingly turning to digital transactions, as Cypriot payment cards are the most popular means of payment (75%) in total transaction volume, making their use the second most frequent in the eurozone, according to a Statistical Report published by the Central Bank, for the first half of 2025.
"Cypriots are turning to digital transactions, while at the same time the use of cheques and cash remains significant, despite the notable decrease observed in the volume of checks and cash withdrawals in recent years," the CBC reports.
As he notes, Cypriot payment cards are the most popular means of payment (75%) in total transaction volume in Cyprus, even having the second most frequent use of payment cards in the entire euro zone, after Portugal.
Credit transfers (84%) are the most popular payment method in Cyprus in terms of total transaction value, while checks come second in value (6%).
As the CBC explains, the frequent use of payment cards is attributed to the fact that card payments are "very convenient, fast and easy".
He adds, in fact, that the decree that came into force in September 2021 by the Ministry of Finance obliging businesses operating in retail and the services sector to accept payment cards appears to have played a significant role in the increased use of payment cards in Cyprus.
At the end of the first half of 2025, the total number of payment cards increased by 7% to 2 million compared to the end of the first half of 2024, with an average of two payment cards corresponding to each Cypriot citizen. Debit cards are the most popular payment cards in Cyprus.
Data for the first half of 2025 shows that the public is 84% more likely to have a debit card than a credit card or postpaid card.
Therefore, according to the ECB's Consumer Attitudes towards Payments Report, "Cyprus experienced the largest decreases in cash use at points of sale (POS) between 2022 and 2024, in transaction volume, compared to all euro area countries."
The report also records that in Cyprus 98% of the volume of credit transfers was carried out electronically rather than in paper form, while the corresponding figure in the euro area was 94%. It is noted, however, that the average use of direct credit transfers in Cyprus (17%) remained below the average use in the euro area (21%).
However, the adoption of instant credit transfers is expected to increase after the September 2025 deadline, as all payment service providers in the EU that offer credit transfers in euros are required to also offer instant credit transfers.
According to the CBC, there appears to be a clear and consistent preference for higher value card payments via the internet rather than at a physical POS (i.e. in-store).
It is noteworthy that the average value of online payments with Cypriot cards (€125) was one of the highest in the euro area, while the average value of card payments at physical POS amounted to approximately €37.
Furthermore, it is reported that Cyprus effectively supports contactless technology, since over 72% of ATMs in Cyprus accept cards with contactless payment function, while the corresponding percentage in the euro zone is equivalent to 34%.
Nevertheless, it is recorded that cash withdrawals continue to be a valuable self-service tool for Cypriots, mainly through ATMs, but also through the cashback tool at POS.
Regarding the services and goods that Cypriots pay for by card, as recorded in the report, the largest amount concerns payments received for payment institutions, which corresponds to 14% (€912 million) of the total value of card payments.
Payments to the government follow, with a share of almost 12% (€768 million) of the total value of card payments. Card payments in grocery stores and supermarkets hold third place with 11% (€690 million).
Card payments received for payment institutions and payments to the government are mainly made online, at 100% and 89% respectively, while card payments in grocery stores and supermarkets are made almost entirely (99%) in person.
(Source: InBusinessNews)
