Cyprus is actively preparing to eliminate checks and cash for transactions with government entities. According to the Ministry of Finance and the General Treasury, all revenues to the state budget will be collected exclusively online. The reform aims to fully automate financial operations, enhance transparency, and accelerate payments between citizens, businesses, and the state.
This initiative is outlined in the Cyprus General Treasury Strategic Plan for 2026–2028, presented within the 2026 state budget recently submitted to Parliament. The plan emphasizes that the share of electronic payments will be a key indicator of the efficiency of the digital transformation of the financial sector.
The End of Checks and Cash
Government agencies in Cyprus are preparing to stop accepting checks for all types of debts by the end of 2025. In offices where technically feasible, cash payments will also be gradually phased out. Instead, instant electronic transfers via the Central Bank of Cyprus system will be introduced.
Since the beginning of 2025, all banks are required to support instant payments, and from October this year, it became mandatory to send instant payments for all government-related transactions. This will reduce transaction processing times from several days to a few seconds.
New API and Digital Services
A key tool in the digitalization effort will be a new electronic payment API, to be launched following the signing of a new government contract for online payment processing services. This will integrate all government systems with banks and payment providers, ensuring instant fund transfers and automatic payer identification.
The new system will reduce the workload on government accounting departments and provide full transparency of fund movements.
Electronic Invoicing and Reporting
Alongside digital payments, Cyprus is accelerating the transition to electronic invoicing for government procurement and contracts. In accordance with EU Directive 55/2014, integrated into Cypriot law, the country has been required to accept electronic invoices since April 2019.
The General Treasury of Cyprus, as the central body for managing public finances and contracts, is responsible for receiving and processing all electronic invoices from companies working with the state. In the coming years, the government plans to increase the share of electronic invoices and ensure that all contracts with public institutions are executed digitally.
Faster Payments and Business Benefits
A key incentive for companies will be accelerated electronic invoice payments, to be made within 20 days of receipt or approval. This will create favorable conditions for contractors and suppliers, reduce administrative delays, and increase business confidence in government systems.
Additionally, electronic invoicing will reduce the risk of lost documents, eliminate the need for paper archives, and cut printing costs. It will also contribute to the “green” economy, as digital document flow significantly reduces paper usage.
A Step Toward a “Smart” Government
Cyprus is steadily moving toward fully digital public administration, where most transactions and services are provided online. These innovations are part of a large-scale program for digital transformation of the public sector, implemented under the Cyprus Digital 2030 national plan.
By 2026, Cyprus is expected to become one of the first EU countries to completely phase out checks and cash for government interactions. This will simplify processes for citizens and businesses, making the financial system more transparent, modern, and secure.