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Cyprus Leads The Eurozone In Card Payments As Digital Transactions Surge

Cyprus recorded the highest share of card payments in the euro area during the second half of 2025, with cards accounting for 75% of all cashless transactions, according to the latest payment statistics from the Central Bank of Cyprus. Credit transfers ranked second at 16%, highlighting the country’s continued shift toward digital payments.

Cards Dominate Everyday Spending

The report, published on Wednesday, found that card use in Cyprus continues to outpace the euro-area average. Cards accounted for 57% of cashless transactions across the bloc, compared with 21% for credit transfers.

The central bank attributed the growth to the spread of contactless payments, expanding e-commerce and wider merchant acceptance.

Online Payments Carry Higher Values

The average in-store card payment in Cyprus was about €38, while the average online transaction reached €129. Across the euro area, the averages were €33 and €60, respectively.

Although physical purchases remained more common, Cyprus ranked among the euro area’s higher-value online card payment markets.

Credit Transfers Lead By Value

Credit transfers accounted for 84% of the total value of cashless payments, reflecting their use for higher-value transactions.

Cheques remained the second-largest payment instrument by value, mainly because of their continued use in business transactions and property deals.

The report also found that instant credit transfers have expanded rapidly in Cyprus, with adoption now exceeding the euro-area average following the implementation of the EU regulation.

Cross-Border Card Use Remains Strong

Domestic transactions represented around 70% of both the number and value of payments. Cards, however, recorded the highest level of cross-border activity, with international transactions accounting for 45% of card payments by volume and 56% by value.

Spending Patterns

Payments to payment institutions accounted for the largest share of card spending at €1.087 billion, followed by government services (€832 million) and grocery purchases (€745 million).

Spending on broker and securities dealer services more than doubled over the past three years, reflecting increased investment-related card use and the strong presence of Forex and CFD firms in Cyprus.

Contactless Payments And ATMs

More than 73% of ATMs in Cyprus support contactless transactions, well above the euro-area average of 38%.

Although the number of ATMs has fallen by around 13% over the past five years, cash withdrawals remained steady at about €2.6 billion in the second half of 2025. The average withdrawal reached a record high as consumers made fewer but larger withdrawals, while counter withdrawals continued to decline.

Meta’s Muse Charm Is More Than A Gimmick — It’s A Bet On Fashionable AI

Meta’s newly announced Muse Charm is already prompting a familiar question: is this a clever attempt to make AI feel more approachable to mainstream consumers, or simply the latest entry in a growing graveyard of flashy hardware that failed to catch on?

Early reactions have been mixed. But one thing is clear: the form factor is timely. In a market increasingly shaped by aesthetics, personalization, and nostalgia, the Charm arrives with the right visual language for the moment.

A Device Designed For A Generation That Likes To Carry Its Personality

For Gen Z consumers, especially, the idea of technology as an accessory is hardly far-fetched. In the post-Labubu era, dangling objects have become cultural currency — from keychains and mini plush toys to beauty products reimagined as bag charms. The appeal is not purely decorative. These items function as signals of identity.

That is precisely why the Charm may resonate. Like the beauty-bag charm trend seen across products such as lip glosses, hand sanitizers, and fragrances, the Muse Charm blends utility with self-expression. It is not just a device. It is a style object.

Hailey Bieber’s Rhode lip case helped push that idea into the mainstream by turning a lip product into something closer to a fashion accessory. The brand’s commercial success underscored how powerful that overlap can be: beauty and utility are no longer separate categories, but increasingly part of the same consumer logic.

The same goes for Labubu, the fuzzy collectible that evolved from niche toy to global phenomenon. While demand for the character may have cooled, the broader bag-charm category has not. Analysts now expect the global market for these accessories to surpass $1 billion by 2030.

The Charm Fits A Wider Retro-Tech Revival

Meta’s Muse Charm also taps into a broader retro-tech movement that has been gaining momentum. Digital cameras, flip phones, iPods, CDs, cassette tapes, wired earbuds, and even landline phones are all finding new life among younger consumers who are increasingly skeptical of always-on, algorithmically optimized technology.

That skepticism has created room for objects that feel tangible, controllable, and personal. For many young people, especially women driving a great deal of this trend, physical tech offers something the digital world often does not: a sense of ownership.

That is part of the appeal behind the growing popularity of so-called cyberdecks, DIY portable computers that are often decorated with jewels, flowers, stickers, pearls, and other embellishments. The point is not just function. It is intimacy.

The Apple Watch Trend Shows The Market Already Exists

There is another, more immediate reference point for Muse Charm: the growing TikTok-driven trend of turning older Apple Watches into keychains, pendants, and bag accessories. Across Amazon, Walmart, eBay, and Etsy, thousands of such products already exist, ranging from practical straps to decorative cases.

In many cases, these items are being worn less as gadgets and more as fashion objects. That distinction matters. It suggests the market is already primed for devices that blur the line between technology and accessory — especially when the technology is small enough to personalize and visible enough to signal taste.

In that sense, Meta is not inventing a new behavior so much as trying to package an existing one.

Meta’s Biggest Challenge Is Not Design. It Is Trust.

Still, good timing does not guarantee success. The biggest obstacle facing Muse Charm may not be product-market fit, but Meta itself.

The company has spent years eroding consumer trust through repeated privacy controversies, regulatory penalties, and public scrutiny over harms to minors. That history is difficult to separate from any new device that asks users to invite Meta even deeper into their daily lives.

And that is the central tension. If Muse Charm is positioned as a free or low-cost AI companion, the real currency may not be the hardware itself but the data it generates. Meta has said it plans to monetize Muse through a small transaction fee, but the broader business model is unmistakable: highly personalized advertising powered by highly personal behavior.

For consumers, the calculation may come down to a familiar tradeoff. The device may be playful, fashionable, and culturally on point. But whether users are willing to trust Meta with another layer of their lives is a far harder question.

That may ultimately determine whether Muse Charm becomes a breakout product — or just another well-designed gadget that could not overcome the baggage of the company behind it.

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