Breaking news

Cypriots Embrace A Cashless Future

As the global economy evolves, Cyprus is witnessing a significant transformation in its payment landscape. Recent data from the Central Bank of Cyprus reveals a marked increase in the use of non-cash payment methods, with Cypriots increasingly favouring cards over cash. In the second half of 2023, the volume of non-cash transactions surged by 15% compared to the previous year, outpacing the growth rate seen across the broader Eurozone.

This shift underscores a broader trend towards digitalisation in financial transactions, reflecting not only consumer convenience but also the growing trust in electronic payment systems. Card payments, in particular, have become the dominant mode of transaction in Cyprus, accounting for 73% of all non-cash transactions, a figure significantly higher than the Eurozone average of 56%. This indicates a cultural shift towards embracing technology-driven financial solutions.

The implications of this shift are profound. For businesses, the rise in card payments opens up new avenues for efficiency and customer engagement. With the increasing use of contactless payments and the proliferation of payment cards—now averaging two per citizen—businesses must adapt to this digital-first approach or risk falling behind.

Moreover, the decline in cheque usage, which fell by 12% in volume, highlights the fading relevance of traditional payment methods. This transition is not just a change in consumer behaviour but a signal of the broader move towards a cashless society.

For financial institutions, this trend represents both an opportunity and a challenge. While the increase in electronic payments can drive down operational costs and increase transaction efficiency, it also necessitates robust cybersecurity measures to protect against potential fraud and cyber threats.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

Uol
Aretilaw firm
The Future Forbes Realty Global Properties
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter