Cyprus is undergoing a structural shift towards digital payments, reshaping consumer behaviour, banking infrastructure and everyday transactions. Cash is gradually losing ground as payment cards, electronic transfers and online commerce become increasingly important.

According to the Central Bank of Cyprus’ October 2026 Statistical Bulletin, payment habits changed significantly between 2022 and 2025, alongside a contraction in physical banking infrastructure and growing reliance on digital financial services.

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ATMs Are Disappearing As Cash Demand Fades

One of the clearest signs of this transition is the decline in automated teller machines. As electronic payments become more common, banks are reducing operating costs by closing cash withdrawal points and scaling back traditional branch-based services.

According to Table 7.1, Cyprus had 396 active ATMs at the end of 2025, down from 416 in June 2022, a decline of 4.8%. The reduction reflects a gradual contraction in the country’s cash infrastructure, although ATMs remain important for consumers who still rely on physical money.

Card Payments Continue To Expand

While the ATM network has shrunk, the number of payment cards has increased. Table 7.2 shows that 2,220,202 active cards were in circulation in December 2025, compared with 1,659,011 in June 2022 and 1,859,006 in December 2023.

The total rose by 561,191 cards between June 2022 and December 2025, an increase of 33.8%. This growth highlights the expanding role of cards in everyday spending and suggests that many consumers hold more than one card for different accounts or payment needs.

Cards Dominate Transactions, But E-Banking Handles The Largest Values

Data from Charts 7.1 and 7.2 reveals a clear difference between payment frequency and total value. Cards accounted for 75% of transaction volume in the second half of 2025, making them the leading method for everyday purchases. Credit transfers through e-banking, however, represented 84% of total transaction value, while cards accounted for just 6%.

The figures reflect different spending patterns. Cards are commonly used for groceries, fuel and other routine purchases, while electronic bank transfers handle larger payments, including rent and utility bills. Traditional cheques have become marginal, accounting for only 1% of transaction volume.

Cross-Border Payments Connect Cyprus To Global Markets

The geographic breakdown in Chart 7.3 highlights the international reach of Cyprus’ payment system. Credit transfers and direct debits remain largely domestic, while card payments and e-money transactions show greater cross-border activity.

International platforms account for a growing share of transactions, particularly those involving online shopping, subscription services and airline travel. Digital payments are making cross-border purchases increasingly routine, connecting Cypriot consumers with businesses and service providers abroad.

Online Commerce Captures The Higher-Value Spending

By the end of 2025, point-of-sale transactions in physical stores accounted for 70% of transaction volume, while online commerce represented 60% of total transaction value.

The difference reflects how consumers spend. Physical shops remain the destination for frequent, lower-value purchases, while online transactions often involve airline tickets, hotel bookings and higher-priced equipment. As a result, physical retail leads in transaction frequency, but e-commerce captures a larger share of spending by value.

Digital Payments Reshape Cyprus’ Financial Landscape

The figures point to a broader transformation in Cyprus’ payment ecosystem: ATM numbers are declining, payment cards are becoming more widespread, electronic transfers dominate transaction value, and online commerce accounts for a substantial share of spending.

Cash remains part of the economy, but digital methods increasingly shape how consumers make everyday purchases, settle larger bills and pay international providers. Cyprus reflects a wider shift across advanced economies, where cards and electronic channels are becoming central to consumer finance.