**Cypriots Withdraw €2.6bn as Local ATM Network Continues to Shrink**
The landscape of automated teller machines (ATMs) in Cyprus is undergoing a notable transformation, as recent data from the Central Bank of Cyprus (CBC) reveals a slight decline in the total number of ATMs across the island. The total fell from 398 at the end of the second half of 2024 to 396 by the end of the second half of 2025.
This reduction comes despite efforts to enhance cash accessibility in remote and mountainous regions, where new ATMs were installed in 2025. However, these additions were more than offset by the removal of machines in more central locations, indicating a strategic shift in the deployment of ATMs.
As of the second half of 2025, approximately 73% of ATMs in Cyprus were equipped to support contactless transactions. This statistic highlights the advanced state of the ATM infrastructure in the country, positioning Cyprus significantly ahead of the euro area average, where only 38% of ATMs offered contactless payment options. The euro area also experienced a marginal decline in the total number of ATMs, dropping from 252,249 in the second half of 2024 to 248,888 a year later.
The trend of declining ATM numbers is not isolated to Cyprus; over the past five years, both Cyprus and the euro area have seen a reduction of about 13% in the number of ATMs. This decline is largely attributed to the gradual decrease in cash usage and banks' initiatives to streamline operational costs. A study conducted by the European Central Bank (ECB) indicated that Cyprus experienced the most significant reduction in cash payments at points of sale among euro area countries from 2022 to 2024, suggesting a shift in consumer payment behavior towards digital methods.
As cash transactions decline, alternative methods for obtaining cash are becoming increasingly common. Cashback services at points of sale have gained traction, providing consumers with additional options to access cash. While ATM withdrawals remain the primary method for cash access in Cyprus, the rise of cashback services is gradually establishing itself as a complementary channel.
In the second half of 2025, ATM cash withdrawals in Cyprus totaled approximately €2.6 billion. This figure remained relatively unchanged compared to the second half of 2024, although the number of individual withdrawals decreased. Consequently, the average withdrawal amount increased, reflecting a trend where consumers are opting for fewer but larger transactions. Over a longer timeframe, the average ATM withdrawal rose significantly by 27%, from €307 in the second half of 2022 to €390 in the second half of 2025. This shift suggests evolving patterns in cash access and usage among consumers.
Additionally, the decline in ATM usage is mirrored by a significant drop in over-the-counter cash withdrawals at bank branches. The number of cash withdrawals made directly at bank counters has nearly halved over the past three years. This trend may be attributed to a growing preference for ATMs and alternative cash channels, as well as a shift towards cost-effective banking services, in line with banks’ efforts to reduce reliance on physical branches.
The changes in the ATM landscape and consumer behavior in Cyprus reflect broader trends in the banking and financial services sector, as digital payment methods gain prominence and traditional cash transactions continue to decline. As the country adapts to these shifts, the future of cash access and banking services may see further evolution, driven by consumer preferences and technological advancements.
Overall, while the reduction in ATMs may present challenges in terms of accessibility, the advancements in contactless technology and the rise of alternative cash access methods indicate a significant transition in how Cypriots manage their finances.