Cypriots are increasingly opting for digital transactions, with payment cards now accounting for three quarters of total transaction volume. According to a report published on Monday by the Central Bank of Cyprus, card usage in Cyprus ranks second highest in the eurozone, reflecting a steady shift away from cash and cheques.
Card payments dominate transaction volume
The Central Bank notes that payment cards represent the most popular payment method in Cyprus by transaction volume, accounting for 75 percent of all transactions. This places Cyprus second in the eurozone for card usage frequency, behind Portugal.
By contrast, credit transfers account for the largest share of total transaction value at 84 percent, while cheques rank second by value at 6 percent.
Role of regulation in increased card use
According to the Central Bank, the frequent use of payment cards is linked to their convenience, speed and ease of use. It also highlights the impact of a decree introduced by the Ministry of Finance in September 2021, which obliges businesses operating in retail and services to accept card payments. The Central Bank states that this measure appears to have played a significant role in boosting card usage in Cyprus.
Growth in payment cards and consumer preferences
By the end of the first half of 2025, the total number of payment cards increased by 7 percent compared to the same period in 2024, reaching two million cards. This corresponds to an average of two payment cards per Cypriot citizen.
Debit cards remain the most popular form of payment card, with data showing that consumers are 84 percent more likely to hold a debit card than a credit or deferred debit card.
Decline in cash usage at points of sale
According to the European Central Bank report on consumer payment behaviour, Cyprus recorded the largest decline in cash usage at points of sale between 2022 and 2024, measured by transaction volume, compared with all other eurozone countries.
The report also notes that 98 percent of credit transfer volumes in Cyprus were carried out electronically rather than in paper form, compared with a eurozone average of 94 percent. However, the average use of instant credit transfers in Cyprus stood at 17 percent, below the eurozone average of 21 percent.
Expected increase in instant credit transfers
The adoption of instant credit transfers is expected to rise after the September 2025 deadline, when all EU payment service providers offering euro credit transfers will be required to also offer instant credit transfers.
Online card payments and transaction values
The Central Bank observes a clear and stable preference for higher value card payments conducted online rather than at physical points of sale. The average value of online card payments made with Cypriot cards reached €125, one of the highest figures in the eurozone.
By comparison, the average value of card payments at physical POS terminals stood at approximately €37.
Contactless infrastructure and cash access
Cyprus is also reported to support contactless technology effectively, with more than 72 percent of ATMs accepting contactless cards. The corresponding eurozone average stands at 34 percent.
Despite this shift, cash withdrawals continue to serve as an important self service tool for Cypriots, primarily through ATMs and also via cashback services at POS terminals.
Sectors receiving the highest card payments
According to the report, the largest share of card payment value relates to payments received by payment institutions, accounting for 14 percent or €912 million of the total value.
Payments to government follow with nearly 12 percent or €768 million, while payments at grocery stores and supermarkets rank third at 11 percent or €690 million.
Payments to payment institutions and government are carried out primarily online, at 100 percent and 89 percent respectively. Card payments at grocery stores and supermarkets are almost entirely conducted with physical presence, at 99 percent.
Source: CNA