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Cyprus Leads The Euro Area As Cashless Payments Hit New High

Cyprus is strengthening its position as one of Europe’s most advanced cashless economies, with card payments accounting for the highest share of non-cash transactions in the euro area during the second half of 2025, according to a report by the Central Bank of Cyprus (CBC).

Digital Payments Gain Further Ground

The volume of non-cash payments in Cyprus rose 8% year on year to 174 million transactions in the second half of 2025, while their total value increased 9% to €148 billion. Across the euro area, transaction volumes also grew 7% to 83 billion, although total value remained broadly unchanged at €118 trillion.

“Cypriots continue to shift towards digital payment methods, with non-cash payment transactions increasing in both volume and value during the second half of 2025,” the central bank said.

Based on data from Cyprus-based credit institutions, payment institutions and electronic money institutions, the report highlights the continued shift in consumer and business payment habits.

Cards Dominate Transaction Volumes

Card payments remained the dominant payment method, accounting for 75% of all non-cash transactions in Cyprus, compared with 16% for credit transfers. This gave Cyprus the highest share of card payments relative to total non-cash transactions in the euro area during the second half of 2025.

According to the CBC, the trend reflects the convenience and speed of card payments, widespread contactless adoption, continued growth in e-commerce and broader merchant acceptance of electronic payments. Across the euro area, cards accounted for 57% of non-cash transaction volumes, while credit transfers represented 21%.

Online Spending Is Reshaping Payment Behaviour

Online card payments carried significantly higher average values than purchases made at physical points of sale, while the average online transaction in Cyprus ranked among the highest in the euro area, reflecting the growing role of e-commerce.

Although cards dominated transaction volumes, credit transfers accounted for 84% of the total value of non-cash payments. Their average value reached €4,500, underlining their continued use for larger business transactions.

Cheques Persist In Select Sectors

Cheque use continued to decline but still accounted for 6% of the total value of non-cash payments in Cyprus, with an average transaction value of €4,000.

“Despite their continued decline, cheques remained the second most important payment instrument in value terms,” the CBC said.

Their use remains concentrated in business-to-business and property transactions, while across the euro area cheques accounted for less than 1% of total non-cash payment value, with an average value of about €1,200.

Instant Payments Accelerate After Regulatory Push

The introduction of the EU Instant Payments Regulation has accelerated the adoption of instant payments. Over the past three years, the share of SEPA Instant Credit Transfers (SCT Inst) rose from less than 1% to almost 32% of all SEPA credit transfers by volume, while their share by value increased to around 9%.

“Growth was more pronounced in Cyprus, enabling it to not only close the gap with, but also surpass the euro area average following the implementation of the Instant Payments Regulation,” the CBC said.

The average instant payment amounted to €1,500, compared with €5,500 for a traditional SEPA credit transfer, suggesting the service is still used primarily for lower-value transactions. Further growth is expected as new initiatives, including SEPA Request-to-Pay, are rolled out.

Infrastructure And Cash Use Continue To Evolve

Cyprus remains one of Europe’s leaders in contactless payment infrastructure, with more than 73% of domestic ATMs supporting contactless transactions, compared with a euro area average of 38%.

Cash withdrawals from ATMs continued to decline, although the average amount withdrawn reached a record high. Over-the-counter withdrawals also fell as consumers increasingly shifted to automated and lower-cost banking channels.

The Next Phase: Digital Euro, Wero And The Fight Against Fraud

Looking ahead, the payments landscape is expected to evolve further through new technologies, including the proposed digital euro, which the Eurosystem aims to introduce by 2029, subject to legislation expected in 2026.

The report also highlights the European Payments Initiative (EPI) and its Wero digital wallet as part of efforts to create a pan-European payment solution and reduce Europe’s reliance on payment providers based outside the region.

At the same time, the shift to digital payments presents new challenges. Older people and residents of remote areas may face difficulties accessing digital services, while the growing use of electronic payments has been accompanied by rising payment fraud.

Improving digital literacy and consumer awareness will therefore remain a priority, with the Cyprus Financial Literacy and Education Committee (CyFLEC) expected to expand its financial education initiatives.

“Ensuring that innovation is accompanied by security, financial inclusion and consumer trust will remain essential for the sustainable development of the payments ecosystem,” the CBC said.

Cyprus Sets A Regional Benchmark

Overall, the report shows Cyprus performing strongly against the euro area across key payment indicators, including card usage, contactless infrastructure and instant payment adoption, while retaining distinctive features such as the continued use of cheques in business and real estate transactions.

Cyprus Remains Heavily Reliant On Roads As EU Report Highlights Congestion And Emissions

Cyprus’ transport system remains heavily dependent on roads, even as the country continues to outperform the European average on road safety, according to a new European Commission report on transport and tourism trends across the European Union.

Titled Transport and Tourism in the European Union – Current Trends and Issues, the report assesses the bloc’s transport performance through the lenses of sustainability, resilience, connectivity, safety, security and the social dimension of mobility. It also includes country factsheets comparing member states against EU averages across a broad range of indicators.

Roads Dominate Passenger And Freight Movement

Passenger cars accounted for 83.5% of inland passenger transport in Cyprus in 2023, slightly above the EU average of 82.0%. Buses and coaches made up the remaining 16.5%, more than double the EU average of 8.2%.

Road dependence is even more pronounced in freight transport. According to the report, road transport accounted for 100% of inland freight movement in Cyprus in 2023, making Cyprus and Malta the only EU member states entirely reliant on roads for domestic cargo transport.

As Cyprus has no railway network, the report’s rail market competition indicators do not apply to the country.

Emissions And Congestion Remain Structural Challenges

Transport also remains a major contributor to Cyprus’ greenhouse gas emissions. In 2023, emissions from the sector, including international maritime and aviation fuels, totalled 3.9 million tonnes of carbon dioxide equivalent, representing 37.9% of the country’s total emissions.

Across the EU, transport accounted for 31% of total greenhouse gas emissions, equivalent to 1,039.3 million tonnes of carbon dioxide equivalent.

Congestion remains another pressure point. The average peak-hour delay per driver in Cyprus reached 40.2 hours in 2023, well above the EU average of 28.6 hours. For businesses, those delays translate into lost productivity, slower logistics and higher operating costs.

Road Safety Stands Out Positively

Despite its heavy reliance on road transport, Cyprus recorded a strong road safety performance. The report ranked the country eighth among the EU’s 27 member states for the lowest number of road deaths per million inhabitants, with 36 fatalities per million people in 2023.

Cyprus also ranked 14th for the lowest number of road deaths per distance travelled, recording 46 fatalities per 10 billion passenger kilometres.

The figures highlight a notable contrast between the country’s reliance on road transport and its comparatively low fatality rates.

Electric Mobility Infrastructure Continues To Expand

Cyprus comfortably exceeded the minimum charging power target required under the Alternative Fuels Infrastructure Regulation. The country’s target stood at 608 kilowatts, while available charging capacity had reached 15,472 kilowatts.

The findings suggest there is scope for further growth in electric vehicle adoption. At the same time, the report indicates that expanding charging infrastructure alone will not address the island’s wider transport challenges. Congestion, dependence on road transport and emissions remain structural issues requiring sustained policy action.

Airports And Ports Continue To Anchor Connectivity

Larnaca Airport remained Cyprus’ busiest airport in 2024, handling 8.876 million passengers. Overall, the country’s airports served 12.514 million passengers, equal to 0.8% of total passenger traffic across the EU.

Larnaca also handled 30.6 thousand tonnes of air freight, accounting for virtually all of Cyprus’ total air cargo volume of 30.7 thousand tonnes.

Maritime traffic was similarly concentrated. Limassol Port was Cyprus’ busiest passenger port in 2024, handling 9,000 passengers and accounting for all recorded passenger port traffic on the island.

For freight, Zygi Port handled 4.212 million tonnes of cargo, representing 47% of Cyprus’ total maritime freight volume of 8.945 million tonnes.

Transport Remains A Core European Growth Engine

Beyond the Cyprus-specific findings, the report highlights transport’s strategic importance to the European economy. The EU transport sector includes around 1.4 million public and private companies and employs approximately 10.4 million people.

Transport and storage services, including postal and courier activities, accounted for more than 5% of total EU employment and around 5% of gross value added in 2023.

According to the report, the volume of goods transported across the EU increased by 43% between 1995 and 2023, while passenger transport rose by 32% over the same period. Passenger transport was hit particularly hard by the Covid-19 pandemic, falling 27% between 2019 and 2020, while freight volumes proved far more resilient.

Trade, Geopolitics And Tourism Reshape Policy Priorities

The report highlights maritime transport’s dominant role in external trade. In 2025, 74.8% of imports and exports by volume moved by sea, accounting for 45.7% of total trade value. Road transport represented 9.5% of trade volume and 22.3% of value, while air transport carried just 1.1% of volume but accounted for 22.9% of total trade value, reflecting the high-value nature of goods shipped by air.

The report also examines the impact of Russia’s invasion of Ukraine. EU Solidarity Lanes, launched in May 2022 after Russia blocked Ukrainian seaports, have enabled Ukraine to export around 214 million tonnes of goods, including nearly 91 million tonnes of grain, oilseeds and related products, while facilitating imports of around 100 million tonnes. The total value of trade handled through the initiative is estimated at about €270 billion.

According to the Commission, road transport agreements with Ukraine and Moldova have strengthened the initiative, while EU sanctions targeting air, maritime, road and rail transport have reduced Russia’s access to goods with military applications and weakened its economic base.

The report also devotes significant attention to tourism, describing it as one of the EU’s most important economic sectors and a key driver of growth, employment and regional development. The bloc recorded more than 3 billion overnight stays in tourist accommodation in 2025, the highest level on record.

The Commission is also preparing an EU Strategy for Sustainable Tourism aimed at promoting a more competitive, sustainable and inclusive sector while strengthening resilience to future crises and supporting local communities.

More broadly, the report argues that climate change, technological progress, demographic shifts and geopolitical disruption will continue to reshape transport. It concludes that the challenge for policymakers will be to keep the sector accessible, efficient and connected while making it more sustainable, innovative and resilient.

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