Retail payments are 'non-time-critical payments of relatively low value. These payments are typically made outside of the financial markets and are both initiated by and made to individuals and non-financial institutions'. (Source: ECB Glossary).
In other words, retail payments entail everyday transactions between consumers, businesses and public authorities (e.g. payments made by consumers to retailers or to utilitities/telecommunication companies/tax authorities, salary and tax payments made by businesses, etc.).
A payment instruments is 'a tool or a set of procedures enabling the transfer of funds from a payer to a payee. The payer and the payee can be one and the same person'. (Source: ECB Glossary). The most common payment instruments in Cyprus are cards, credit transfers, direct debits and cheques.
The Eurosystem and the European Central Bank (ECB) have a catalyst role in retail payments for facilitating EU market integration, whereby they analyse changes, identify trends, develop policies, collaborate with stakeholders and foster innovation.
The Central Bank of Cyprus (CBC), in its capacity as catalyst for market-led change, closely monitors innovation and fosters structural changes to the Cypriot payment services market.