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Cyprus Leads The Euro Area As Cashless Payments Hit New High

by THEFUTURE.TEAM

Cyprus is strengthening its position as one of Europe’s most advanced cashless economies, with card payments accounting for the highest share of non-cash transactions in the euro area during the second half of 2025, according to a report by the Central Bank of Cyprus (CBC).

Digital Payments Gain Further Ground

The volume of non-cash payments in Cyprus rose 8% year on year to 174 million transactions in the second half of 2025, while their total value increased 9% to €148 billion. Across the euro area, transaction volumes also grew 7% to 83 billion, although total value remained broadly unchanged at €118 trillion.

“Cypriots continue to shift towards digital payment methods, with non-cash payment transactions increasing in both volume and value during the second half of 2025,” the central bank said.

Based on data from Cyprus-based credit institutions, payment institutions and electronic money institutions, the report highlights the continued shift in consumer and business payment habits.

Cards Dominate Transaction Volumes

Card payments remained the dominant payment method, accounting for 75% of all non-cash transactions in Cyprus, compared with 16% for credit transfers. This gave Cyprus the highest share of card payments relative to total non-cash transactions in the euro area during the second half of 2025.

According to the CBC, the trend reflects the convenience and speed of card payments, widespread contactless adoption, continued growth in e-commerce and broader merchant acceptance of electronic payments. Across the euro area, cards accounted for 57% of non-cash transaction volumes, while credit transfers represented 21%.

Online Spending Is Reshaping Payment Behaviour

Online card payments carried significantly higher average values than purchases made at physical points of sale, while the average online transaction in Cyprus ranked among the highest in the euro area, reflecting the growing role of e-commerce.

Although cards dominated transaction volumes, credit transfers accounted for 84% of the total value of non-cash payments. Their average value reached €4,500, underlining their continued use for larger business transactions.

Cheques Persist In Select Sectors

Cheque use continued to decline but still accounted for 6% of the total value of non-cash payments in Cyprus, with an average transaction value of €4,000.

“Despite their continued decline, cheques remained the second most important payment instrument in value terms,” the CBC said.

Their use remains concentrated in business-to-business and property transactions, while across the euro area cheques accounted for less than 1% of total non-cash payment value, with an average value of about €1,200.

Instant Payments Accelerate After Regulatory Push

The introduction of the EU Instant Payments Regulation has accelerated the adoption of instant payments. Over the past three years, the share of SEPA Instant Credit Transfers (SCT Inst) rose from less than 1% to almost 32% of all SEPA credit transfers by volume, while their share by value increased to around 9%.

“Growth was more pronounced in Cyprus, enabling it to not only close the gap with, but also surpass the euro area average following the implementation of the Instant Payments Regulation,” the CBC said.

The average instant payment amounted to €1,500, compared with €5,500 for a traditional SEPA credit transfer, suggesting the service is still used primarily for lower-value transactions. Further growth is expected as new initiatives, including SEPA Request-to-Pay, are rolled out.

Infrastructure And Cash Use Continue To Evolve

Cyprus remains one of Europe’s leaders in contactless payment infrastructure, with more than 73% of domestic ATMs supporting contactless transactions, compared with a euro area average of 38%.

Cash withdrawals from ATMs continued to decline, although the average amount withdrawn reached a record high. Over-the-counter withdrawals also fell as consumers increasingly shifted to automated and lower-cost banking channels.

The Next Phase: Digital Euro, Wero And The Fight Against Fraud

Looking ahead, the payments landscape is expected to evolve further through new technologies, including the proposed digital euro, which the Eurosystem aims to introduce by 2029, subject to legislation expected in 2026.

The report also highlights the European Payments Initiative (EPI) and its Wero digital wallet as part of efforts to create a pan-European payment solution and reduce Europe’s reliance on payment providers based outside the region.

At the same time, the shift to digital payments presents new challenges. Older people and residents of remote areas may face difficulties accessing digital services, while the growing use of electronic payments has been accompanied by rising payment fraud.

Improving digital literacy and consumer awareness will therefore remain a priority, with the Cyprus Financial Literacy and Education Committee (CyFLEC) expected to expand its financial education initiatives.

“Ensuring that innovation is accompanied by security, financial inclusion and consumer trust will remain essential for the sustainable development of the payments ecosystem,” the CBC said.

Cyprus Sets A Regional Benchmark

Overall, the report shows Cyprus performing strongly against the euro area across key payment indicators, including card usage, contactless infrastructure and instant payment adoption, while retaining distinctive features such as the continued use of cheques in business and real estate transactions.

Meta’s Muse Charm Is More Than A Gimmick — It’s A Bet On Fashionable AI

by THEFUTURE.TEAM

Meta’s newly announced Muse Charm is already prompting a familiar question: is this a clever attempt to make AI feel more approachable to mainstream consumers, or simply the latest entry in a growing graveyard of flashy hardware that failed to catch on?

Early reactions have been mixed. But one thing is clear: the form factor is timely. In a market increasingly shaped by aesthetics, personalization, and nostalgia, the Charm arrives with the right visual language for the moment.

A Device Designed For A Generation That Likes To Carry Its Personality

For Gen Z consumers, especially, the idea of technology as an accessory is hardly far-fetched. In the post-Labubu era, dangling objects have become cultural currency — from keychains and mini plush toys to beauty products reimagined as bag charms. The appeal is not purely decorative. These items function as signals of identity.

That is precisely why the Charm may resonate. Like the beauty-bag charm trend seen across products such as lip glosses, hand sanitizers, and fragrances, the Muse Charm blends utility with self-expression. It is not just a device. It is a style object.

Hailey Bieber’s Rhode lip case helped push that idea into the mainstream by turning a lip product into something closer to a fashion accessory. The brand’s commercial success underscored how powerful that overlap can be: beauty and utility are no longer separate categories, but increasingly part of the same consumer logic.

The same goes for Labubu, the fuzzy collectible that evolved from niche toy to global phenomenon. While demand for the character may have cooled, the broader bag-charm category has not. Analysts now expect the global market for these accessories to surpass $1 billion by 2030.

The Charm Fits A Wider Retro-Tech Revival

Meta’s Muse Charm also taps into a broader retro-tech movement that has been gaining momentum. Digital cameras, flip phones, iPods, CDs, cassette tapes, wired earbuds, and even landline phones are all finding new life among younger consumers who are increasingly skeptical of always-on, algorithmically optimized technology.

That skepticism has created room for objects that feel tangible, controllable, and personal. For many young people, especially women driving a great deal of this trend, physical tech offers something the digital world often does not: a sense of ownership.

That is part of the appeal behind the growing popularity of so-called cyberdecks, DIY portable computers that are often decorated with jewels, flowers, stickers, pearls, and other embellishments. The point is not just function. It is intimacy.

The Apple Watch Trend Shows The Market Already Exists

There is another, more immediate reference point for Muse Charm: the growing TikTok-driven trend of turning older Apple Watches into keychains, pendants, and bag accessories. Across Amazon, Walmart, eBay, and Etsy, thousands of such products already exist, ranging from practical straps to decorative cases.

In many cases, these items are being worn less as gadgets and more as fashion objects. That distinction matters. It suggests the market is already primed for devices that blur the line between technology and accessory — especially when the technology is small enough to personalize and visible enough to signal taste.

In that sense, Meta is not inventing a new behavior so much as trying to package an existing one.

Meta’s Biggest Challenge Is Not Design. It Is Trust.

Still, good timing does not guarantee success. The biggest obstacle facing Muse Charm may not be product-market fit, but Meta itself.

The company has spent years eroding consumer trust through repeated privacy controversies, regulatory penalties, and public scrutiny over harms to minors. That history is difficult to separate from any new device that asks users to invite Meta even deeper into their daily lives.

And that is the central tension. If Muse Charm is positioned as a free or low-cost AI companion, the real currency may not be the hardware itself but the data it generates. Meta has said it plans to monetize Muse through a small transaction fee, but the broader business model is unmistakable: highly personalized advertising powered by highly personal behavior.

For consumers, the calculation may come down to a familiar tradeoff. The device may be playful, fashionable, and culturally on point. But whether users are willing to trust Meta with another layer of their lives is a far harder question.

That may ultimately determine whether Muse Charm becomes a breakout product — or just another well-designed gadget that could not overcome the baggage of the company behind it.

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