Credit Transfers Lead the Way in Cyprus
A recent report by the Central Bank of Cyprus (CBC) underscores the enduring appeal of credit transfers in the local economy. Accounting for 83 percent of the total transaction value, credit transfers remain the primary non-cash payment method, with an average transaction value of €4,402.
Cheques and Cards: Evolving Roles in the Payment Ecosystem
Despite the rapid advancement of digital payment solutions, cheques continue to hold significant relevance in Cyprus, contributing 7 percent of total transaction value with an impressive average payment of €3,615—three times higher than the euro area average of €1,140. Conversely, payment cards, used in 74 percent of transactions, are favored for lower-value purchases, exemplified by an average card transaction of €39. This duality highlights a distinctive payment behavior pattern in Cyprus, blending both traditional and modern payment methods.
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Robust Digital and Contactless Infrastructure
The CBC report further reveals a pronounced preference for high-value online card payments, with the average online payment amount reaching €127—placing Cyprus among the top performers within the euro area. A robust contactless infrastructure bolsters this trend, as evidenced by over 75 percent of ATMs in Cyprus supporting contactless card technology, compared to only 33 percent in the broader euro area.
Growth in Payment Institutions and Future Prospects
Additionally, the number of licensed payment and electronic money institutions rose slightly from 36 in 2023 to 38 in 2024, reinforcing Cyprus’ position as one of the most institutionally advanced markets per capita in the euro area. This stability and growth present a promising outlook, as businesses and consumers continue to adapt to a hybrid payment landscape that leverages both digital innovation and established financial instruments.
