People in Cyprus continue to embrace digital payment methods. According to a new report by the Central Bank, the number of cashless transactions in the country increased by 8% in the second half of 2025 compared to the same period a year earlier, reaching 174 million transactions. The total value of these transactions also rose by 9%, reaching €148 million.
According to the regulator, Cyprus ranked first among eurozone countries in the share of card payments within the total volume of cashless transactions. Bank cards accounted for 75% of all cashless payments on the island, while bank transfers represented 16% of transactions. Across the eurozone, card payments account for an average of 57% of all cashless purchases, while bank transfers make up 21%. Experts attribute the growing popularity of card payments to the convenience of contactless transactions, the expansion of e-commerce, and the increasing number of businesses accepting electronic payments.
Online Shopping and Instant Transfers Become the New Normal
The Central Bank notes that e-commerce continues to grow rapidly. The average value of online card payments in Cyprus is significantly higher than payments made in physical stores and remains among the highest in the eurozone. This indicates that people on the island are increasingly making high-value purchases online.
At the same time, SEPA Instant Credit Transfers (SCT Inst) are becoming increasingly popular. Over the past three years, their share has grown from less than 1% to nearly 32% of all SEPA transfers.
By transaction value, instant transfers have increased from less than 1% to approximately 9% of all SEPA transfers. The average instant transfer amounts to around €1,500, while a standard SEPA bank transfer averages €5,500. This suggests that instant transfers are primarily used for everyday payments, whereas traditional bank transfers remain the preferred option for larger transactions.
Bank Transfers Remain the Leader by Transaction Value
Although bank cards dominate in the number of transactions, the majority of funds are still transferred through bank transfers. They account for 84% of the total value of all cashless payments in Cyprus. The average bank transfer is worth around €4,500, making this payment method the preferred choice for businesses and high-value financial transactions.
Despite the gradual decline in the use of cheques, they are still actively used in certain sectors of the economy. Cheques account for 6% of the total value of cashless payments, with the average cheque valued at approximately €4,000. They are most commonly used for business-to-business transactions and real estate deals.
Digital Payments Continue to Expand, but New Challenges Remain
Cyprus is among Europe's leaders not only in bank card usage but also in the development of contactless payment infrastructure. More than 73% of the country's ATMs support contactless transactions, compared with the eurozone average of 38%.
At the same time, people are withdrawing cash less frequently, although the average withdrawal amount continues to increase. More and more banking customers are choosing mobile apps, online banking, and other digital services.
The Central Bank expects digital payments to become even more widespread in the coming years, supported by new European initiatives, including the planned introduction of the digital euro, which the Eurosystem aims to launch by 2029, provided that the necessary legislation is adopted in 2026.
At the same time, the regulator highlights the need to improve digital literacy and strengthen protection against fraud. This is particularly important for elderly people and residents of remote areas, who may find it more difficult to adapt to new financial technologies. According to the Central Bank, the continued development of digital payments should go hand in hand with strong security measures, accessible financial services for all groups of the population, and greater public trust in digital payment systems.