CYPRUS: Consumers spend less, card payments drop 12% in Jan-Feb

With the household incomes dwindling and banks still not fully injecting money into the economy, consumers seem to be holding back on their spending habits, with credit card payments recording a cumulative 12% fall in the first two months of the year.

According to the JCC Payment Systems card clearing monopoly, credit card use dropped 6% in February year-on-year, to €164.6 mln, while the same year-on-year decrease was also recorded in January.
JCC, wholly owned by the local banks, said that card transactions rose at supermarkets, but were down in the government sector, DIY and household stores, and fuel purchases.
JCC said the decrease of transactions in government was related to the extension of the deadline for vehicle tax renewal. An increase in this category is expected in March, it said, as car owners rush to renew their road taxes and avoid a hefty €85 fine from the police.
Suggesting that Cypriot did not change their spending habits on their travels, JCC data showed that transactions with local cards abroad remained unchanged in February from the year-earlier level of €86.7 mln.