Cyprus's payment culture is changing rapidly. Residents of the island are increasingly abandoning cash in favor of bank cards and digital solutions. According to the Central Bank of Cyprus, the number of cashless transactions grew by 9% in the first half of 2024 compared to the same period in 2023, reaching 150 million transactions.
Cyprus's growth rate is ahead of the eurozone's, where the volume of transactions grew by 7% and the total amount by only 2% over the same period.
The most popular card payment categories are:
In the first half of 2024, the most popular card payment categories were:
- Transfers and payments through payment institutions: around €750 million.
- Payments to the state: €718 million.
- Purchases in supermarkets and grocery stores: €653 million.
- Investments in stocks and securities: €529 million.
- Spending in cafes and restaurants totaled €370 million.
- Bank transfers: €353 million.
- Utility payments: €208 million.
- Betting and gambling: €196 million
- Fuel: €164 million
- Clothing purchases: €113 million.
This structure indicates the high degree to which cards are integrated into the daily lives of Cypriots, from paying bills to investing.
Where are cards used, physical stores or online?
Despite the development of digital technologies, most transactions are still carried out in physical stores. In the first half of 2024, 71% of all card payments by volume were made through in-store terminals, while 29% were made online. However, online payments lead in terms of value, at 56% versus 44%.
For comparison, offline transactions account for 82% of the volume and 72% of the value in the eurozone, indicating that online channels are used more actively in Cyprus.
ATMs are not obsolete: cash remains in circulation
Despite the digital trend, ATMs continue to play an important role. In the first half of 2024, Cypriots withdrew €2.4 billion from ATMs, which is 3% more than in 2023. More than 75% of ATMs in Cyprus support contactless payments, whereas in the eurozone, this figure is only about 30%.
Cyprus leads the way in the number of fintech companies per capita
Against the backdrop of growth in cashless transactions, the number of payment institutions is also growing. In 2024, Cyprus had 38 licensed operators, including electronic money institutions. This is one of the highest figures in the Eurozone considering the population size. Cyprus's well-developed fintech infrastructure makes it an attractive center for innovative payment solutions.
Cyprus is steadily moving towards a cashless future, surpassing the eurozone average. The active use of cards, growth in online payments, and sustainable fintech sector development confirm the country's adaptation to modern needs and its strengthening position as a technologically advanced regional economy.