The value of cashless transactions in Cyprus reached €129 billion in the second half of 2023, with a total of 152 million transactions, reflecting an increase of 12 per cent and 15 per cent, respectively, on an annual basis.
This growth rate outpaced the eurozone average, which saw a 7 per cent increase in transactions despite a 7 per cent decline in value.
According to the payment statistics report, published for the first time on Friday by the Central Bank of Cyprus (CBC), the value of credit transfers increased by 13 per cent to €106 billion, while the value of direct debits saw a modest 4 per cent rise to €2 billion in the second half of 2023 compared to the same period in 2022.
Moreover, the value of card payments recorded a 14 per cent increase, reaching €7 billion, while the value of electronic money payments remained relatively stable at €3 billion during the same period. The value of cheques, meanwhile, remained unchanged at €11 billion.
The CBC also reported that credit transfers accounted for 83 per cent of total transaction value, making them the most popular payment method in Cyprus.
Cheques were the second most common method by value, representing 8 per cent, highlighting their significant presence in the domestic market.
In terms of transaction volume in Cyprus, credit transfers increased by 13 per cent to 23 million in the second half of 2023, while direct debits decreased by 4 per cent to 8 million compared to the same period in 2022.
The volume of card payments and electronic money payments increased by 18 per cent, reaching 111 million and 5 million, respectively, compared to the second half of 2022.
Meanwhile, the volume of cheques decreased by 12 per cent to 3 million, and remittances showed a 19 per cent upward trend, reaching 2 million during the same period.
The report also showed that high-value payments in Cyprus are primarily made through credit transfers, accounting for 83 per cent of total transactions in the second half of 2023.
Cheques held the second position with an 8 per cent share, underscoring their ongoing relevance in the domestic market during the same period.
In contrast, across the eurozone, credit transfers constituted 93 per cent of total transaction value in the second half of 2023, with direct debits being the second most popular payment method, holding a 5 per cent share.
It is worth noting that cheques accounted for less than 1 per cent of total transaction value in the eurozone during the same period.
According to the Central Bank of Cyprus, there is a clear preference in Cyprus for higher-value payments to be made online with cards rather than in person, in other words, by visiting a bank.
In addition, the average value of online payments made with Cypriot cards (€122) was among the highest in the eurozone.
The highest amounts spent using Cypriot payment cards were for payments received by payment institutions and for purchases in grocery stores and supermarkets, each accounting for 10 per cent and 9 per cent of the total value of card payments, respectively.
Furthermore, betting services ranked as the eighth most valuable category for payments made with Cypriot cards.
The CBC also pointed out that Cyprus effectively supports contactless technology, with over 74 per cent of ATMs in Cyprus accepting contactless payment-enabled cards, compared to 29 per cent in the eurozone.
Additionally, the total number of payment cards increased by 8 per cent in the second half of 2023, reaching 1.9 million, compared to the second half of 2022, with an average of 2 payment cards per Cypriot citizen.
Elsewhere in the report, the CBC noted that the total number of ATMs in Cyprus remained relatively stable, with 398 ATMs at the end of the second half of 2023, up slightly from 392 at the end of the second half of 2022.
Finally, the CBC said that ATMs continue to be a valuable self-service tool for the public in Cyprus, recording withdrawals of €2.4 billion during the second half of 2023, a modest increase of 3 per cent compared to the corresponding period in 2022.
