Cyprus has emerged as a leader in cashless payments, with card usage exceeding the eurozone average across all age demographics, according to a European Central Bank study released yesterday.
The study reveals that 59 per cent of Cypriot consumers preferred cards and other cashless payments for in-store purchases in 2024, compared to the eurozone average of 55 per cent.
Only 22 per cent favoured cash payments, whilst 23 per cent expressed no clear preference.
The preference for digital payments remained strong across all age groups in Cyprus. Among young adults aged 18-24, 58 per cent preferred cashless methods, with only 12 per cent opting for cash.
The trend continued in the 25-39 age bracket, where 57 per cent chose cards over cash, which was preferred by 17 per cent.
The study showed consistent card payment preferences in older age groups, with 59 per cent of those aged 40-54 and 58 per cent of those aged 55-64 favouring cashless transactions.
Notably, even in the over-65 category, 61 per cent preferred card payments, with only 25 per cent choosing cash.
In terms of transaction value, cards and mobile banking applications accounted for 56 per cent of payments in Cyprus during 2024, significantly higher than the eurozone’s 34 per cent.
Cash transactions represented 28 per cent of the value, compared to 24 per cent in the eurozone.
The ECB research also addressed concerns about cash access, particularly in rural areas.
Most Cypriots (56 per cent) found access to cash withdrawals “very easy”, compared to the eurozone average of 46 per cent. Only 2 per cent reported significant difficulties accessing cash.
Consumers cited convenience and the elimination of carrying physical money as primary advantages of card payments. For cash users, privacy and better spending awareness were key benefits.
The ECB emphasised its commitment to maintaining diverse payment options, noting that whilst digital payments are increasing, nearly two-thirds of consumers still want cash as a payment option.
The study also revealed that approximately one in ten respondents required assistance with digital payments, highlighting the need for inclusive payment solutions across all age groups and demographics.
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