Banks are set to implement major changes to payment systems in 2025, introducing faster and cheaper transactions as part of a broader European Union initiative to enhance banking competition.
From January 2025, banks in Cyprus will be required to offer instant payments at the same cost as standard domestic transfers, following new EU regulations aimed at equalising cross-border and domestic transaction fees, banking officials said.
A new phone-based money transfer system, similar to Greece’s IRIS platform, is expected to launch in the second half of 2025, allowing customers to transfer money between different banks using only mobile phone numbers instead of IBAN codes. The service will be free and transactions will be completed within seconds.
Bank of Cyprus and Hellenic Bank are also planning to introduce measures from January 10 and January 31 respectively, including lower interest rates, new mortgage products for young couples, reduced fees for specific transactions, and expanded ATM networks in rural areas.
The changes follow political pressure to improve banking services and boost lending.
Both major banks will offer special provisions for customers over 65 and new account holders aged 18 and above, with particular focus on supporting vulnerable groups.
