Cypriots are increasingly turning to digital payments, as payment cards now account for 75% of total transaction volume, making their use the second highest in the eurozone, according to a European Central Bank (ECB) report for the first half of 2025.
Card payments dominate transactions
The European Central Bank (ECB) noted that although cheques and cash remain significant, their use has fallen sharply in recent years. Payment cards are the most popular method, while credit transfers represent 84% of total transaction value, with cheques second at 6%.
Reasons for rising card usage
The report attributes frequent card use to convenience, speed, and ease. The September 2021 decree by the Ministry of Finance, requiring retail and service businesses to accept card payments, has also boosted usage.
Card growth and preferences
By the end of the first half of 2025, the total number of payment cards rose 7% to two million, averaging two cards per Cypriot. Debit cards remain the most popular, with 84% of the public more likely to hold a debit card than a credit or deferred-charge card.
Shift from cash to electronic payments
According to the ECB’s consumer payment report, Cyprus recorded the largest reduction in cash use at points of sale between 2022 and 2024 compared to all eurozone countries. Additionally, 98% of credit transfers were conducted electronically in Cyprus versus 94% across the eurozone.
Future adoption of instant credit transfers
The report expects instant credit transfers to increase after the September 2025 deadline, when all EU euro payment providers must offer instant transfers.
Online vs in-store payments
Cypriots prefer higher-value payments online rather than in-store, with average online card payments at €125 – among the highest in the eurozone – compared to approximately €37 per in-store card transaction.
Contactless technology adoption
Cyprus also leads in contactless technology, with over 72% of ATMs supporting contactless cards, compared to 34% in the eurozone. Cash withdrawals remain widely used via ATMs and cashback at points of sale.
Where Cypriots use cards
The largest card payments go to payment institutions, representing 14% (€912 million) of total card payment value, followed by government payments at 12% (€768 million) and supermarkets at 11% (€690 million). Payments to institutions and the government are mostly online (100% and 89% respectively), while supermarket payments are nearly entirely in person (99%).
Source: CNA
Also read: How can thousands of households remain trapped in poverty despite the numbers?
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