Concerns were escalated in Parliament regarding the accessibility of ATMs for elderly residents in mountainous and other remote areas, who are forced to travel between villages to withdraw cash.

This issue has urged banks to install additional ATMs in these remote regions, with a modest expansion of 10 new machines aimed at improving service accessibility for these vulnerable populations.

However, according to Cyprus Mail sources, the number of new ATMs in remote areas may rise above that number.

The same sources put the approximate annual cost of an ATM at €50,000, regardless of the volume of usage. This cost has been a factor for banks when planning or adjusting their ATM network.

As of June 2024, the overall number of ATMs in Cyprus experienced a slight decline, dropping to 397, down from the 416 ATMs recorded in June 2022.

According to data from the Central Bank of Cyprus (CBC), this 4.56 per cent reduction over two years has been accompanied by minor fluctuations.

392 ATMs were recorded in December 2022, this number rose to 401 by June 2023, and then slightly decreased to 398 by December 2023.

As the country adapts to changing banking needs, there has been a noteworthy increase in the adoption of payment cards.

The number of payment cards in circulation has surged by 20.6 per cent from 1,659,011 in June 2022 to 1,993,641 by the end of June 2024.

This rise is part of a broader shift towards digital payments, evidenced by the fact that 81 per cent of non-cash transactions were conducted via payment cards in the first quarter of 2024.

Moreover, Cyprus is making significant strides in contactless payment technology, with over 74 per cent of ATMs now capable of handling contactless transactions.

This rate obviously contrasts with the euro area average of 29 per cent and reflects the island’s rapid digital transformation within the financial sector.

The European Central Bank (ECB) has also emphasised the digital euro as a strategic initiative to reduce fragmentation in the eurozone’s retail payment systems.

The ECB’s recent report criticises the dominance of foreign companies, particularly in card transactions, which make up the bulk of retail payment volumes.

Such market fragmentation, the ECB argues, limits competition, restricts consumer choice, inflates costs, and impedes the eurozone’s ability to fully leverage digitalisation benefits for its citizens and businesses.

In addition to evolving payment methods and ATM dynamics, the CBC’s report provides insights into Cyprus’ broader financial landscape.

As of December 2024, the ratio of bank deposits to GDP had decreased to 167 per cent from 198 per cent a year earlier, while the loans to GDP ratio also fell to 76 per cent from 94 per cent.