Digital Banking Transformation In Cyprus Amid ATM Challenges

by THEFUTURE.TEAM

November 6, 2025

The Central Bank of Cyprus (CBC) has observed only a modest bump in the number of Automatic Teller Machines (ATMs) on the island, even as legislation intensifies calls for improved cash accessibility in rural communities. Recent data indicate that the total count of ATMs has edged negligibly between June and December 2024, continuing a subtle downward trajectory over the past two years.

Transformation In Payment Methods

The CBC’s comprehensive analysis not only highlights a static ATM network but also underscores a sweeping transition in transaction behavior. Card payments have surged, with over two million payment cards in circulation by December 2024—a marked increase from two years prior. These digital tools now account for 72 to 73 percent of all non-cash transactions. In contrast, direct debits, cheques, and electronic money have seen diminished roles, reflecting a broader consumer pivot toward digital finance.

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Government Response And Consumer Adaptation

While policymakers express concerns regarding ATM accessibility, particularly for elderly residents who still depend on cash, banks have taken measured steps. After heightened political pressure reported by local lawmakers, institutions committed to installing up to ten additional ATMs in rural zones. Despite these efforts, the overall ATM expansion remains marginal.

Emerging Trends And The Prospect Of A Digital Euro

The evolving payment landscape in Cyprus is paralleled by shifting economic fundamentals. Non-cash transactions now primarily leverage card payments, with physical terminals dominating usage, even though online transactions lead in value. At a macroeconomic level, deposits remain robust—hovering at 194 percent of GDP—despite a modest decline in loan proportions.

Looking forward, the digital euro project advocated by the European Central Bank (ECB) promises to further unify retail payment systems across the euro area. Designed with inclusivity at its core, the digital euro aims to secure transactional reliability for all users, irrespective of income or digital proficiency.

This data-driven narrative not only illustrates the resilience of traditional banking infrastructures but also signals a decisive pivot toward digital innovation in Cyprus. As digital payment methods continue to eclipse conventional cash-based transactions, stakeholders from regulators to business leaders must adapt to an environment where technology and financial services converge seamlessly.

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Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

by THEFUTURE.TEAM

December 24, 2025

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

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Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.

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