Nicosia, Cyprus. Digital transactions in Cyprus are continuing to grow rapidly as consumers and businesses increasingly shift to card payments, mobile banking, electronic wallets and fintech applications. The trend reflects broader economic digitalisation and mounting pressure on Europe’s financial system from new payment technologies, artificial intelligence, blockchain and the planned digital euro.
Euro area payments continue to rise
According to the European Central Bank, the number of non-cash payments in the euro area reached 77.7 billion in the first half of 2025, up 7.7 per cent from the same period a year earlier.
Card payments remained the most widely used electronic payment method, accounting for 57 per cent of all non-cash transactions in the euro area. Contactless payments also increased, with 29.6 billion contactless card payments recorded during the same period, a rise of 12.8 per cent year-on-year.
Cyprus outpaces the euro area average
Figures based on ECB data show that card payments accounted for 74.5 per cent of cashless transactions in Cyprus in the first half of 2025, placing the country among the eurozone’s strongest users of electronic payments.
The growing use of digital transactions is also reflected in the local fintech market. Dozens of fintech companies and startups have been established in recent years, while traditional banks are investing in mobile banking, digital onboarding, instant payments and online customer services.
Market growth and oversight
According to the US International Trade Administration, Cyprus’ digital payments market is expected to grow from $2.76 billion in 2025 to $6.70 billion by 2030, driven mainly by mobile point-of-sale payments.
Fintech, short for financial technology, refers to the use of digital innovation in financial services. This includes digital wallets, mobile payment apps, online lending platforms, automated investment tools, credit scoring systems, artificial intelligence, big data and blockchain-based services.
The ECB has repeatedly described fintech as a key part of the modernisation of Europe’s financial system. It has also said that innovation must be accompanied by strong supervision, consumer protection, data security and effective controls against fraud and money laundering.
In Cyprus, the Central Bank of Cyprus plays a central role in monitoring developments in financial technology. Its Innovation Hub is designed to support startups, licensed institutions and fintech providers seeking to launch innovative products or services in the Cypriot market and beyond.
