The rise of EMIs and their future evolution

The Electronic Money Institutions (EMIs) sector is experiencing rapid growth, driven by the ever-increasing demand for digital transactions and continuous technological advancements.

As we step into 2025, the outlook for EMIs remains highly promising, though emerging challenges are shaping a dynamic and demanding landscape.

The expansion of the Cypriot economy, projected to grow at a rate of approximately 2.8% in 2025, further strengthens the sector’s momentum. Green growth and digital transformation, supported by the Recovery and Resilience Plan, create favorable conditions for investments in cutting-edge technologies, such as digital payments. At the same time, EMIs play a crucial role in attracting Foreign Direct Investments (FDIs) and facilitating the establishment of multinational companies in Cyprus—organizations that prioritize transaction speed, security, and reliability. In this way, EMIs contribute to the enhancement of this ecosystem and the creation of new job opportunities.

It is widely acknowledged that EMIs are increasingly embracing technological innovations and leveraging Artificial Intelligence (AI) to enhance user experience and enable real-time data analysis. Unsurprisingly, in recent years, they have emerged as key players in the financial sector.

However, despite the upward trajectory, the industry faces significant challenges. Compliance with new regulations—such as the Digital Operational Resilience Act (DORA) and the evolving supervisory framework of the Central Bank of Cyprus, which is a welcome development—require investments in infrastructure and operational processes. At the same time, the growing threat of cyberattacks makes strengthening cybersecurity a top priority. At Moneygate, we continuously invest in cutting-edge technologies and security infrastructure, ensuring full compliance with international standards and safeguarding our customers.

Moreover, the substantial investments required, combined with the need to achieve economies of scale due to increasing regulatory complexity, have led to a wave of mergers and acquisitions (M&A) in the sector globally. Larger players seek access to new technologies, markets, and customer bases, while smaller firms pursue strategic partnerships to secure their viability. With the number of EMIs rising in Cyprus, this trend may well materialize locally in the coming years, especially as the number of institutions licensed by the Central Bank of Cyprus continues to grow.

With the right strategies and investments, EMIs—such as Moneygate—can remain at the forefront of the digital revolution, shaping the future of financial services in Cyprus and beyond, while simultaneously contributing to economic growth and enhancing the country’s attractiveness for foreign investment.

*Nicolas Treppides, Founder & CEO of Moneygate