**Title: Cyprus Government Embraces Digital Payments with 85% of Receipts via Bank Transfers**
In a significant move towards digitalization, the government of Cyprus reported that bank transfers accounted for 85% of its total receipts during the first half of 2026. This trend highlights the state’s ongoing transition to modern payment methods, as noted by accountant-general Andreas Antoniades in a statement to the Cyprus News Agency (CNA).
The data reveals that alongside bank transfers, online payments contributed an additional 10% to government receipts, while electronic payments made in person represented 1%. Traditional payment methods, which have been gradually declining, now only account for 4% of total government receipts.
Antoniades emphasized the widespread adoption of electronic payment channels, stating that their use has become “universal in the state.” He pointed out that the increasing preference for digital methods to settle government debts is indicative of a broader shift towards a fully digital transformation of state transactions.
This movement towards digital payments is set to accelerate with the recent signing of a contract with VivaBank Single-member Banking Company for processing electronic government transactions. The contract, valued at €4.1 million, was awarded following a tender by the Treasury of the Republic and is expected to be implemented by 2027. The contract covers a three-year period, with an option for the government to renew for an additional year. The contract includes provisions for evaluation, preparation, and technical interconnection.
Until the new system is operational, the government will continue to process card transactions under its existing contract with JCC Payment Systems Limited, which was recently renewed. Antoniades mentioned that approximately €1.5 billion in government receipts is processed annually through JCC.
As part of its digital transition, the government has been phasing out traditional payment methods. Since January 1, 2026, personal cheques have no longer been accepted from individuals or businesses, and while banker’s drafts are still temporarily available, there are plans to discontinue their acceptance in the near future. Currently, cash remains the only traditional payment method accepted for transactions up to €10,000.
Antoniades described the shift towards a fully digital payment environment as a crucial aspect of the state’s broader digital transformation strategy. He outlined several benefits of this transition, including enhanced speed, accessibility, and transparency in serving citizens and businesses. Furthermore, the move is expected to reduce administrative costs and alleviate the operational burden on public administration.
The continuous upgrading of digital infrastructure and the introduction of new payment solutions are anticipated to make public administration more efficient and accessible. Antoniades asserted that these efforts are laying the groundwork for “a more efficient, modern, and citizen-friendly State,” while ensuring the effective use of public resources.
As Cyprus continues to embrace digital payments, the government is poised to enhance its financial operations and improve the overall experience for citizens and businesses alike. The transition marks a significant step in modernizing the state's financial interactions, reflecting a global trend towards digitalization in public administration.