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Cyprus ATM Network Contracts As Contactless Access Continues To Grow

Cyprus’ cash-access infrastructure remained broadly stable in 2025, even as the number of automated teller machines continued its gradual decline, according to a new report from the Central Bank of Cyprus. The number of ATMs fell from 398 at the end of the second half of 2024 to 396 a year later.

While banks added new machines in remote and mountainous areas to improve access for local communities, those installations were offset by removals elsewhere as lenders continued adjusting their branch and self-service networks.

Contactless ATMs Expand

By the end of the second half of 2025, around 73% of ATMs in Cyprus supported contactless transactions, well above the euro area average of 38%.

ATM numbers also declined across the euro area, falling from 252,249 to 248,888 over the same period. Over the past five years, both Cyprus and the euro area have reduced their ATM networks by around 13%, reflecting lower cash usage and banks’ efforts to streamline operations.

Cash Withdrawals Become Less Frequent

The report also highlights a continued shift in payment habits. According to the ECB’s SPACE study, Cyprus recorded the largest decline in the share of cash payments at the point of sale among euro area countries between 2022 and 2024. At the same time, cashback services have become a more common way for consumers to access cash.

ATMs remained the primary withdrawal channel, with around €2.6 billion withdrawn during the second half of 2025. Although the total value was broadly unchanged from a year earlier, fewer transactions pushed the average withdrawal up from €307 in the second half of 2022 to €390 by the second half of 2025.

Bank Counter Withdrawals Continue To Decline

Cash withdrawals at bank counters have almost halved over the past three years, reinforcing the shift toward self-service and alternative cash-access channels.

Retail’s AI Push Faces A Cybersecurity And Regulatory Reality Check

Artificial intelligence is becoming a strategic priority for retailers, with 80% of retail leaders planning to increase investment in the technology, according to EY’s latest CEO Outlook Survey. However, growing concerns over cybersecurity, customer privacy and regulation could complicate adoption across an industry already facing inflation, geopolitical uncertainty and changing consumer expectations.

Confidence In AI Comes With Risks

The survey found that 80% of retail leaders are confident in their ability to expand the responsible use of AI and customer data. Retailers are increasingly applying the technology to demand forecasting, inventory management, customer service and personalised marketing, seeking to improve efficiency and respond more quickly to market changes.

Yet adoption brings new vulnerabilities. EY found that 24% of retail leaders identified cybersecurity and data privacy as a leading business risk for the year ahead. Retailers manage sensitive customer information, payment systems and complex supply chains, making effective security and governance essential as AI becomes more deeply embedded in their operations.

The World Economic Forum’s Global Cybersecurity Outlook 2026 highlights the wider challenge: 87% of organisations reported rising cyber risks linked to AI vulnerabilities, while 94% expected malicious AI to have a significant impact on cybersecurity in 2026.

Regulation Will Shape AI Adoption

Regulatory frameworks are also influencing how quickly retailers can expand their use of AI. The European Union’s AI Act, China’s state-led governance model and measures introduced by individual US states are shaping the rules around the technology.

For retailers, compliance is becoming a strategic consideration, particularly for customer-facing applications that use personal data to personalise offers, automate interactions or analyse consumer behaviour. Regulatory missteps could carry significant costs in a sector where customer trust is critical.

EY Outlines Four Possible Futures

EY recommends that retailers plan for multiple outcomes rather than assume the current investment boom will continue uninterrupted. Its analysis draws on a four-scenario framework developed by Jim Dator of the University of Hawaii.

One scenario envisages constrained AI adoption as economic pressures, regulation, cyberattacks, legacy systems and poor data quality limit progress. Retailers in this environment may prioritise lower-risk back-office applications, such as finance, procurement, inventory and logistics, while customer-facing tools face resistance.

A second scenario anticipates continued growth, with sustained investment and widespread adoption. A third envisages deeper economic and social transformation as technology reshapes business operations. The fourth considers systemic breakdown, in which a small number of technology platforms control access to AI models and charge premium prices, potentially making advanced capabilities less accessible even to large retailers.

Governance Will Determine Competitive Advantage

EY’s findings suggest that investment alone will not determine which retailers benefit most from AI. Companies will also need robust cybersecurity, effective governance and strategies that can adapt to different economic, technological and regulatory conditions.

For a sector operating on tight margins, the challenge is to turn AI investment into lasting business value while managing the risks that come with greater dependence on the technology.

The Future Forbes Realty Global Properties
Aretilaw firm
eCredo
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