Cypriots choosing cards over cash

More and more Cypriots are turning to 'plastic money,' as a result of which the volume of non-cash transactions is constantly on the rise, and also at a much faster pace than in the rest of the Eurozone.

This conclusion is drawn from the data elaborated on and published in a relevant report by the Central Bank of Cyprus.

According to the report, in Cyprus the total volume of transactions (excluding cash) increased by 15% to 152 million transactions in the second half of 2023, compared to the second half of 2022, while the total value increased by 12% to €129 billion for the same period.

In fact, based on the report, both the total volume and the value of transactions increased at a faster rate in Cyprus than in the euro area.

Indicatively, it is reported that in the euro area the total volume in the second half of 2023 increased by 7% to €71 billion compared to the second half of 2022, while the total value decreased by 7% to €111 trillion for the same period.

Transaction volume by means of payment

Further analysis of the data also shows that payment cards were used almost five times more often than credit transfers, which ranked second in terms of transaction volume.

In particular, for the second half of 2023, the relevant shares amounted to 73% for payment cards and 15% for credit transfers.

Accordingly, in the euro area, card payments represented 56% of the total transaction volume and credit transfers 21% for the second half of 2023.

Additionally, credit transfers, card payments and e-money payments grew at a faster rate in Cyprus than the corresponding euro area increases in transaction volume.

More specifically, in Cyprus, the volume of credit transfers during the second half of 2023 increased by 13% to €23 million, while the volume of direct debits decreased by 4% to €8 million compared to the second half of 2022.

Also, the volume of card payments and e-money payments increased by 18% to €111m and €5m, respectively, compared to the second half of 2022.

At the same time, the volume of cheques decreased by 12% to €3 million, while remittances showed an upward trend of 19% reaching €2 million for the corresponding period.

Value of transactions per payment method

According to the report of the Central Bank, in Cyprus, payments of greater value are made mainly through credit transfers, representing 83% of total transactions for the second half of 2023, while cheques took second place with a share of 8%. thus confirming their significant presence in the domestic market for the same period.

In the euro area, however, credit transfers made up 93% of the total transaction value for the second half of 2023, while the second most popular means of payment was direct debits with a 5% share.

It is worth noting that the share of cheques in the euro area was negligible (less than 1%) for the same period.

Also based on the same data, the value of transactions, credit transfers and card payments grew at a faster rate in Cyprus than in the euro area, while direct debits and electronic money payments grew at a slower rate in Cyprus than in the euro area.

Furthermore, the value of cheques decreased at a faster rate in the euro area than in Cyprus, while it is noteworthy that the average value of check payments in Cyprus (€3,351) was 3 times higher than that of the euro area ( €1,112).

In addition, in Cyprus the value of credit transfers increased by 13% to €106 billion, while the value of direct debits saw a marginal increase of 4% reaching €2 billion in the second half of 2023 compared to the second half of 2022.

The value of card payments also recorded an increase of around 14% to €7 billion, while the value of e-money payments remained relatively stable at €3 billion over the same period and the value of cheques remained stable at €11 billion

The most popular goods and services

Regarding the most popular goods and services acquired with card payments, according to the report, the largest amount spent is on payments received for payment institutions, which corresponds to 10% (€704m) of the total value of card payments.

This is followed by payments in grocery stores and supermarkets with a share of 9% (€665m) of the total value of card payments, government services (€642m), stock circles (€551m) and eating places and restaurants (€376 million).

Also, payments of €320 million related to utility bills (electricity, water, etc.), €316 million to bank transfers and money orders, €192 million to gambling, €172 million to gas station transactions and € 125 million in-store transactions in family stores.

Cards are increasing, ATMs are stable

Based on the report of the Central Bank, in the second half of 2023, the total

number of payment cards increased by 8% reaching 1.9 million compared to the second half of 2022, with an average of 2 payment cards corresponding to each Cypriot citizen.

In the euro area, the total number of payment cards increased by 7% to 703.1 million compared to the second half of 2022, with an average of 2 payment cards for every euro area citizen.

At the same time, debit cards are the most popular payment cards in Cyprus, with data showing that the public is 84% ​​more likely to have a debit card than a credit or postpaid card.

Regarding the number of ATMs, this remained relatively stable from the end of the second half of 2022 (ATMs: 392) to the end of the second half of 2023 (ATMs: 398).

It is noteworthy, however, that more than 74% of ATMs accept cards with a contactless payment function.

Similarly, the total number of ATMs in the euro area remained relatively stable from the end of the second half of 2022 (ATMs: 266,817) to the end of the second half of 2023 (ATMs: 265,624).

According to the same data, ATMs still remain a valuable self-service tool for the public in Cyprus recording withdrawals of €2.4 billion in the second half of 2023, marking a limited increase of 3% compared to the corresponding period of 2022.

(Source: InBusinessNews)