Nicosia: Bank transfers have become the predominant method for government transactions, accounting for 85% of total state receipts during the first half of 2026, according to Accountant General of the Republic, Andreas Antoniades, who spoke to CNA. Antoniades highlighted the growing dominance of electronic payment channels in government dealings, emphasizing a steady shift from cash to digital methods for settling debts to the state.
According to Cyprus News Agency, electronic payments are not only on the rise but have nearly replaced traditional payment methods. Online card payments now make up 10% and in-person card payments 1% of the total government receipts, leaving only 4% to traditional methods. This transition underscores the government's commitment to a full digital transformation of its financial transactions.
Antoniades further revealed details about a key contract with VivaBank Single-Member Banking S.A., signed on August 12, 2026, for providing electronic transaction processing services for the public sector. The contract, valued at 4.1 million pounds, is set to be fully operational by 2027. The agreement includes an initial three-year term with the possibility of two one-year extensions, covering assessment, preparation, and technical integration.
Currently, card payments to the government are managed by JCC Payment Systems Limited, which handles approximately 1.5 billion pounds annually in government receipts. The transition away from personal cheques began on January 1, 2026, while cash payments are still accepted for amounts up to 10,000 pounds. However, plans are in place to phase out banker's drafts, aligning with the broader digitalization goals.
Antoniades emphasized that creating a fully digital payment environment is central to the state's digital transformation strategy. By employing modern technologies and secure electronic channels, the government aims to enhance service speed, accessibility, and transparency, while also cutting administrative costs and public administration workload.
Finally, Antoniades noted that ongoing upgrades to the state's digital infrastructure and the adoption of innovative payment solutions are essential steps towards building a more efficient, modern, and citizen-friendly governmental framework, ensuring optimal use of public resources.