Nicosia: Although cash remains the most popular payment method in Cyprus, a recent survey by the Central Bank of Cyprus (CBC) highlights a significant use of credit and debit cards, with 63% of respondents using them weekly in shops. According to Cyprus News Agency, the CBC's first quantitative survey on the awareness and knowledge of the digital euro also reveals a substantial lack of understanding among Cypriots regarding this new digital currency.
The survey indicates that 23% of respondents engage in payments or transfers via the internet or mobile apps weekly, while 40% of card users make payments via mobile phones on a weekly basis. The use of cheques is notably limited. The survey further identifies that individuals who predominantly use cash are often older men with limited access to digital means, lower educational levels, and lower incomes, including pensioners and the unemployed. In contrast, those favoring digital payments, including online or mobile banking and mobile card payments, are mainly women under 45, with tertiary education, from higher or middle socio-economic backgrounds, and residing in urban areas.
Additionally, the data reveals that while 61% of respondents are unaware of the digital euro, only 1% are fully informed. Those with some knowledge are typically under 65, employed, and possess tertiary education. Information about the digital euro primarily comes from social media (49%) and television (30%), with younger people and those from middle or lower-income groups favoring social media, while older, less educated, and unemployed individuals rely more on television. Higher-income groups and business professionals prefer print or online newspapers.
The survey also finds that 35% of participants are willing to integrate the digital euro into their daily transactions, predominantly younger, educated, and higher-income individuals. Conversely, 28% find it unlikely they will adopt it. Among potential users, 40% would employ it for online purchases, 41% for in-store purchases, and 33% for person-to-person payments. However, 56% doubt the digital euro offers substantial differences from existing payment methods, with the main concerns being transaction monitoring, the potential abolition of cash, and security issues.
Despite these concerns, 54% of business professionals express willingness to accept digital euro payments, while others remain cautious, citing cost and demand as factors influencing their decision. The European Central Bank is currently working on the digital euro's legal and technical frameworks, aiming for its issuance in 2029. The survey was conducted via telephone interviews with 506 Cypriots aged 18 and over from April 21 to 27, using a structured questionnaire by the CBC's Directorate-General for Payments Supervision.