The electronic money institutions (EMIs) sector is experiencing rapid growth, driven by the increasing demand for digital transactions, according to Moneygate founder and CEO Nicolas Treppides.
“As we step into 2025, the outlook for EMIs remains highly promising, though emerging challenges are shaping a dynamic and demanding landscape,” he explained.
Treppides also commented on the Cypriot economy, noting that it is projected to grow at a rate of approximately 2.8 per cent in 2025. He said that this “further strengthens the sector’s momentum”.
Moreover, he mentioned that green investments and digital transformation, supported by the Recovery and Resilience Plan, create favourable conditions for investments in cutting-edge technologies, such as digital payments.
“EMIs play a crucial role in attracting Foreign Direct Investments (FDIs) and facilitating the establishment of multinational companies in Cyprus—organisations that prioritise transaction speed, security, and reliability,” he said.
“In this way, EMIs contribute to the enhancement of this ecosystem and the creation of new job opportunities,” he added.
Treppides also said that “EMIs are increasingly embracing technological innovations and leveraging Artificial Intelligence (AI) to enhance user experience and enable real-time data analysis”.
He said that this has resulted in them becoming “key players in the financial sector”.
However, he said that “despite the upward trajectory, the industry faces significant challenges”.
Among these challenges are compliance with new regulations—such as the Digital Operational Resilience Act (DORA) and the changing supervisory framework of the Central Bank of Cyprus (CBC).
He said that while this “is a welcome development” it requires investments in infrastructure and operational processes.
“At the same time, the growing threat of cyberattacks makes strengthening cybersecurity a top priority,” Treppides added.
He explained that this has prompted his own company to invest in new technologies and security infrastructure.
Moreover, Treppides pointed out that the substantial investments required, along with the need to achieve economies of scale, primarily due to increasing regulatory complexity, “have led to a wave of mergers and acquisitions (M&A) in the sector globally”.
“Larger players seek access to new technologies, markets, and customer bases, while smaller firms pursue strategic partnerships to secure their viability,” he said.
“With the number of EMIs rising in Cyprus, this trend may well materialise locally in the coming years, especially as the number of institutions licensed by the Central Bank of Cyprus continues to grow,” he added.
