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Cyprus Moves Ahead Of The Euro Area In Digital Payments Adoption

by THEFUTURE.TEAM

July 24, 2026

Cyprus is accelerating its shift towards digital payments, outpacing the broader euro area in card usage and instant payments as consumers and businesses increasingly move away from cash.

Non-Cash Payments Continue To Expand Across The Euro Area

Non-cash payments across the euro area continued to grow in the second half of 2025, rising 6.9% year on year to 83.5 billion transactions, according to the European Central Bank (ECB). Their total value reached €117.8 trillion, up 0.8% from the same period in 2024.

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Cards remained the dominant payment method, accounting for 57% of all non-cash transactions. Credit transfers represented 21%, followed by direct debits at 14% and electronic money payments at 6%. Cheques, money remittances and other payment services accounted for the remainder.

Cyprus Posts Stronger Growth Than The Bloc Average

Cyprus’ payments market expanded at a faster pace than the broader euro area, according to separate data from the Central Bank of Cyprus (CBC). The island recorded 174 million non-cash transactions in the second half of 2025, up 8% year on year, while their total value increased 9% to €148 billion.

“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 CBC said.

Describing the payments market as “the engine of the economy”, the central bank said it is shaped by a broad range of payment instruments used by consumers and businesses. The analysis draws on data from all Cyprus-resident payment service providers, including credit institutions, payment institutions and electronic money institutions.

Cards Dominate Daily Spending

Across the euro area, card payments rose to 47.8 billion transactions, up 7.9% year on year, with a total value of €1.8 trillion, an increase of 6.9%. The average card payment remained close to €39.

Online purchases accounted for 19% of card transactions by number and 30% by value. Payments made at physical points of sale represented the remaining 81% of transactions and 70% of value.

Contactless payments also continued to gain momentum. Their number increased 11.9% to 32.9 billion, while their value rose 12.8% to €0.9 trillion. Contactless transactions accounted for 85% of in-person card payments by volume and 70% by value.

In Cyprus, cards accounted for roughly 75% of all non-cash transactions, the highest share in the euro area. The CBC attributed this to the convenience and speed of card payments, the rapid adoption of contactless technology, continued growth in e-commerce and broader merchant acceptance of electronic payments.

Online card payments in Cyprus also stood out for their relatively high average transaction values. According to the CBC, these were significantly higher than payments made at physical points of sale and ranked among the highest in the euro area, highlighting the growing importance of e-commerce in household spending.

Credit Transfers Carry The Bulk Of Value

While cards accounted for the largest share of transactions, credit transfers remained the dominant payment method by value. Across the euro area, they reached 17.8 billion transactions, up 7.1% year on year, with a total value of €108.9 trillion, an increase of 0.6%.

Their higher average value meant credit transfers accounted for 92% of the total value of all non-cash payments. Electronically initiated transfers outnumbered paper-based transfers by around 19 to one, while by value the ratio stood at 15 to one.

In Cyprus, credit transfers represented 16% of total payment volumes but 84% of the total value of non-cash payments, with an average transaction size of €4,500. This reflects their continued use for higher-value business transactions.

The CBC said credit transfers and direct debits grew faster in Cyprus than across the euro area, pointing to wider adoption by households and businesses. Growth in card payments and electronic money payments broadly matched the regional trend.

Instant Payments Gain Momentum

Electronic money payments also continued to expand across the euro area. The ECB recorded 5.1 billion transactions, up 10.7% year on year, with their combined value rising 11.7% to €0.3 trillion. Almost all electronic money payments were executed through electronic money accounts rather than stored-value cards.

The CBC also highlighted the rapid adoption of SEPA Instant Credit Transfers. In Cyprus, instant payments increased from less than 1% of all SEPA credit transfers three years ago to almost 32% by volume, while accounting for around 9% of the total value of SEPA credit transfers.

“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.

Cheque Use Declines But Remains Relevant In Business Transactions

Cheque usage continued to decline across the euro area, but remained more significant in Cyprus. Cheques accounted for 6% of the total value of non-cash payments on the island, with an average transaction value of €4,000. By comparison, they represented less than 1% of total payment value across the euro area, with an average value of €1,200.

According to the CBC, cheques continue to be used for business-to-business and property-related transactions, reflecting long-standing commercial practices.

Infrastructure Expands Alongside Usage

Payment infrastructure also continued to expand across the euro area. By the end of 2025, there were 872.7 million payment cards in circulation, equivalent to 2.5 cards per resident. The number of point-of-sale terminals increased 24.6% to 25.7 million, with 93% capable of accepting contactless payments.

The number of ATMs declined 1.3% to around 248,900, although 38% supported contactless transactions. In Cyprus, more than 73% of domestic ATMs enabled contactless withdrawals, placing the country well above the euro area average.

Across the euro area, 36 retail payment systems processed 60.1 billion transactions worth €27.9 trillion during the second half of 2025. Instant credit transfers accounted for 25% of all credit transfer transactions by volume but only 8% by value. The three largest retail payment systems — MCMS, STEP2-T and France’s CORE — handled 67% of transaction volumes and 63% of total value.

Meanwhile, large-value payment systems settled 75.1 million payments worth €213.8 trillion, with T2 and EURO1 remaining the two principal systems.

The Next Phase Will Test Security And Inclusion

Looking ahead, the CBC said the payments sector will continue to evolve through technological innovation, including the proposed digital euro, which the Eurosystem aims to introduce by 2029, subject to legislation expected in 2026. The European Payments Initiative and its Wero digital wallet are also expected to play an important role in strengthening Europe’s payment infrastructure.

The transition to digital payments, however, also presents new challenges. The CBC warned that older people and residents of remote areas may face barriers to accessing digital services, while payment fraud remains a growing concern.

“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.

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Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

by THEFUTURE.TEAM

November 9, 2026

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

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Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.