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Cyprus Leads The Eurozone In Card Payments As Digital Transactions Surge

Cyprus recorded the highest share of card payments in the euro area during the second half of 2025, with cards accounting for 75% of all cashless transactions, according to the latest payment statistics from the Central Bank of Cyprus. Credit transfers ranked second at 16%, highlighting the country’s continued shift toward digital payments.

Cards Dominate Everyday Spending

The report, published on Wednesday, found that card use in Cyprus continues to outpace the euro-area average. Cards accounted for 57% of cashless transactions across the bloc, compared with 21% for credit transfers.

The central bank attributed the growth to the spread of contactless payments, expanding e-commerce and wider merchant acceptance.

Online Payments Carry Higher Values

The average in-store card payment in Cyprus was about €38, while the average online transaction reached €129. Across the euro area, the averages were €33 and €60, respectively.

Although physical purchases remained more common, Cyprus ranked among the euro area’s higher-value online card payment markets.

Credit Transfers Lead By Value

Credit transfers accounted for 84% of the total value of cashless payments, reflecting their use for higher-value transactions.

Cheques remained the second-largest payment instrument by value, mainly because of their continued use in business transactions and property deals.

The report also found that instant credit transfers have expanded rapidly in Cyprus, with adoption now exceeding the euro-area average following the implementation of the EU regulation.

Cross-Border Card Use Remains Strong

Domestic transactions represented around 70% of both the number and value of payments. Cards, however, recorded the highest level of cross-border activity, with international transactions accounting for 45% of card payments by volume and 56% by value.

Spending Patterns

Payments to payment institutions accounted for the largest share of card spending at €1.087 billion, followed by government services (€832 million) and grocery purchases (€745 million).

Spending on broker and securities dealer services more than doubled over the past three years, reflecting increased investment-related card use and the strong presence of Forex and CFD firms in Cyprus.

Contactless Payments And ATMs

More than 73% of ATMs in Cyprus support contactless transactions, well above the euro-area average of 38%.

Although the number of ATMs has fallen by around 13% over the past five years, cash withdrawals remained steady at about €2.6 billion in the second half of 2025. The average withdrawal reached a record high as consumers made fewer but larger withdrawals, while counter withdrawals continued to decline.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

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