Cyprus Leads the Euro Area in Card Payments as Cashless Transactions Continue to Rise
Cyprus is becoming one of Europe’s most cashless societies. According to the latest report from the Central Bank of Cyprus (CBC), the country recorded the highest share of card payments among all euro area countries during the second half of 2025.
Key Highlights
Non-cash payment transactions reached 174 million, up 8% year-on-year.
The total value of these transactions increased 9% to €148 billion.
Across the euro area, non-cash payments also grew by 7%, reaching 83 billion transactions.
The CBC noted that Cypriots continue to embrace digital payment methods thanks to their convenience, speed, and growing acceptance across the country.
Card Payments Dominate
Card payments accounted for 75% of all non-cash transactions in Cyprus, making it the highest proportion in the euro area.
By comparison:
Card payments represented 57% of all non-cash transactions across the euro area.
Credit transfers accounted for 16% of transaction volume in Cyprus.
The growth has been driven by:
Widespread adoption of contactless payments.
Continued expansion of e-commerce.
Increasing acceptance of electronic payments by merchants.
Online Shopping Continues to Grow
The report also highlighted the rapid growth of online shopping.
Cyprus recorded one of the highest average values for online card transactions in the euro area, reflecting consumers’ increasing confidence in digital commerce.
Credit Transfers Handle the Largest Values
Although cards dominate by transaction volume, bank credit transfers account for 84% of the total value of non-cash payments.
The average credit transfer was approximately €4,500, demonstrating their continued importance for large business and commercial transactions.
Cheques Still Play a Role
Unlike many European countries, cheques remain relevant in Cyprus.
Cheques represented 6% of the total value of non-cash payments.
The average cheque value was around €4,000.
They are still commonly used for business-to-business payments and real estate transactions.
Across the euro area, cheques account for less than 1% of total payment value.
Instant Payments Growing Rapidly
Following the implementation of the EU Instant Payments Regulation, Cyprus has seen strong growth in instant bank transfers.
SEPA Instant Credit Transfers (SCT Inst):
Increased from less than 1% to nearly 32% of all SEPA credit transfers by volume.
Reached around 9% of total SEPA transfer value.
According to the CBC, Cyprus has now surpassed the euro area average in the adoption of instant payments.
Strong Contactless Infrastructure
Cyprus continues to rank among Europe’s leaders in contactless payment infrastructure.
More than 73% of domestic ATMs support contactless transactions.
The euro area average stands at just 38%.
Cash withdrawals from ATMs continue to decline, indicating that consumers increasingly prefer digital payment options.
Looking Ahead
The CBC expects digital payments to continue expanding through:
The planned Digital Euro, expected to launch by 2029, subject to EU legislation.
The European Payments Initiative (EPI) and its Wero digital wallet, designed to create a unified European payment system and reduce dependence on non-European payment providers.
Challenges Remain
Despite the rapid shift toward digital payments, the report notes several challenges:
Older people and residents in remote areas may have limited access to digital payment services.
Payment fraud continues to rise alongside electronic transactions.
Improving digital financial literacy and consumer awareness will remain a key priority.
Conclusion
The report confirms that Cyprus is one of Europe’s fastest-growing digital payment markets. With the highest share of card payments in the euro area, advanced contactless infrastructure, and rapid adoption of instant payments, Cyprus continues to strengthen its position as a modern, digitally connected economy.