Filenews 12 December 2021 - by Eleftheria Paizanos
Consumers in Cyprus use cash less and less now, as the last two years have put credit cards in their lives. On the one hand, the coronavirus pandemic - and the initial fear of using banknotes - and on the other hand, the implementation of the law by which, since 20 September, almost all businesses are obliged to use a special terminal machine and to accept credit cards as a means of payment, have catapulted card transactions.
The data obtained by "F" from JCC show that from 2019 until November this year there was a very large increase (up to more than doubling, in some areas) in the use of electronic means of payment, even in economic activities that in the past only received cash from consumers, such as kiosks and other retail outlets.
Between 2019 and 2020, JCC recorded a bigger increase, due to concern from the pandemic, while a smaller increase, but significant, occurs between 2020 and 2021, to some extent due to the fear of a fine of €,000 for businesses that break the law and do not accept credit card payments.
In detail, from September to November 2021, the use of credit cards increased by 12.7% compared to 2020. But compared to 2019, the increase reached 55.2%.
In November this year, credit card purchases increased by 13.2%, compared to last year's corresponding month, while compared to 2019 the increase is of the order of 54.3%. From September, when the legislation to extend the mandatory provision of card-based payment facility came into force, until the end of November, credit card payments have risen by 5.6%.
We recall that on June 18, the Ministry of Finance issued a decree by which businesses in 85 economic activities were obliged to accept as means of payment both cash and credit cards. As JCC data shows, many consumers even buy a coffee and pay by card. The largest increase was recorded in professional services, such as lawyers and accountants, who previously hindered card acceptance. Specifically, in the quarter September – November 2021, card transactions in professional services increased by 121% compared to 2019, while compared to 2020 these increased further, by 78%.
There is a big increase in transactions with electronic means of payment in kiosks and bakeries, as these increased by 102% compared to 2019 and by 22% compared to 22%.
Especially the data concerning the kiosks are of great importance, as there are complaints that for some products (milk, press, phone cards) some entrepreneurs either impose extra charges, or invite consumers to buy additional products in order to accept to be paid with cards.
It is recalled that with the new year there will be a legislative regulation, through which the gaps in the law will be filled and sanctions will be imposed on those who break the law.
Payments by card of creditors in catering and supermarkets also hit red, as they increased by 96% (September-November 2021) compared to 2019 and by 76% (catering) and 4.4% (supermarkets) compared to 2020.
As far as insurance services are concerned, in September to November 2021, credit card acceptance increased by 70% compared to 2019 and by 16% compared to last year. The use of credit cards in pharmacies increased by 66% compared to 2019 and by 20% compared to 2020.
According to JCC data, consumers choose to pay by credit cards for utility bills (water-electricity), as there is an increase of 53% compared to 2019 and by 27% compared to last year. Electronic means of payment are also used for the supply of fuel, the use of which increased by 48% compared to 2019 and by 40% compared to 2020.
