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.

EU To Apply Temporary €3 Duty On Low-Value Imports From Non-EU Countries

The European Union has begun applying a temporary customs duty of €3 per item on small parcels valued at up to €150 imported from third countries, in a move designed to curb unfair competition and tighten safety checks on e-commerce products.

A Temporary Measure Ahead Of A Wider Customs Overhaul

The levy, which took effect on 1 July, will remain in place until 2028, when the EU expects to complete a broader reform of its customs system. The policy primarily affects purchases from major Asian marketplaces such as Shein, Temu and AliExpress, although it may also apply to orders from other non-EU markets, including the United States and the United Kingdom, depending on the supplier.

How The Duty Is Calculated

The €3 charge is applied per product type within each parcel. In practical terms, that means a single order containing different categories of goods is taxed separately for each category.

For example, a parcel containing a shirt and a pair of shoes would face a total duty of €6. If the package contains multiple units of the same item, however, the charge remains €3 for that product type.

In another case, a parcel with four different products could incur €12 in duties alone. Larger baskets with multiple item categories could therefore see the final bill rise significantly before value-added tax is added.

Why Brussels Is Acting Now

The measure is aimed at the rapid growth in small cross-border e-commerce shipments arriving from outside the EU. In recent years, these flows have surged into the billions of parcels annually, with the majority originating in China.

According to the European Union, the previous regime of zero customs duties on parcels worth up to €150 created unfair conditions for European businesses, while also limiting the ability of authorities to carry out effective safety and compliance checks.

Officials also warn that many parcels entered the market with inaccurate value declarations or without sufficient scrutiny, increasing the risk of non-compliant or potentially dangerous products reaching consumers.

What It Means For Consumers And Platforms

Consumers should expect higher total costs on online purchases, particularly for low-value orders. A €20 basket, for instance, could easily climb above €25 or €30 depending on how many different products it includes.

In some cases, additional handling fees may be introduced later as part of the EU’s wider customs reform. For now, the main question is how platforms will respond: they may either absorb the cost or pass it on to shoppers.

Many large e-commerce providers already operate through the IOSS system, which streamlines the collection of VAT and duties at checkout.

The Next Phase Of Reform

The temporary duty is only one piece of a larger overhaul. The EU is also working to abolish the €150 threshold and replace it with a unified digital customs framework by 2028.

Under the new model, e-commerce platforms would be treated as “deemed importers,” taking on greater legal responsibility for the safety and compliance of the products they sell into the European market.

Aims: Fairer Competition And Stronger Protection

European authorities say the reform is intended both to protect consumers and to create a more level playing field for European companies.

Just as important, it is expected to make customs controls more efficient by reducing the volume of individual low-value parcels and improving the authorities’ ability to identify non-compliant goods at the border.

Aretilaw firm
Uol
The Future Forbes Realty Global Properties
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter