Cyprus, the tech island: reflections on the Reflect Festival

June 4, 2024

15 4 minutes read

Cyprus has emerged as a thriving tech hub over the past decade, attracting numerous technology companies due to its favourable infrastructure and regulatory environment.

Cyprus has emerged as a thriving tech hub over the past decade

This Mediterranean island, renowned for its rich history and scenic beauty, is now establishing itself as a centre for innovation and business.

For many companies, the decision to set up a base in Cyprus is driven by several strategic factors. The island’s proximity to major airports, such as Larnaca, provides convenient access for international travel. Moreover, Cyprus offers a favourable regulatory environment, which is particularly appealing to fintech companies.

At last week’s Reflect Festival in Limassol, Cyprus, I caught up with Stylianos Lambrou, co-founder of the festival and co-founder of Techisland Techisland is a not-for-profit organisation with an ambitious mission to make the tech industry the most impactful driver of GDP growth and job market expansion in Cyprus by 2030.

Stylianos detailed how important technology is in the country already, with 30,000 people out of a population of 1 million now working in the sector. Its contribution to GDP now stands at around 15%. The Reflect Festival is a way of promoting Cyprus as a tech island. By bringing together 8,000 people, the festival showcases what the island has to offer for existing companies and start-ups alike.

Stylianos told me, “Cyprus is an amazing location as it sits between three continents: Africa, the Middle East, and Europe. It’s a great place to live as well as work.” Sitting in the sun, having escaped the dreary London summer weather, he didn’t need to say any more. But it also has tax incentives for both businesses and individuals. And the country sees fintech as a significant growth opportunity.

A standout Cypriot fintech success story is Payabl, a fintech company that has been thriving for several years. I spoke with Ugne Buraciene, Payabl’s Group CEO. Originally from Lithuania, Ugne has found a home in Cyprus. She shared that the ease of regulatory compliance and logistical advantages drove Payabl’s decision to establish its business operations in the country. This strategic move has proven to be successful, as Payabl, which remains a profitable private company, continues to expand its presence across Europe.

Payabl is a payments company that offers its customers a wide range of payment solutions, including card acquiring, banking services, local payment methods, and POS terminals. As part of its strategic expansion, Payabl has obtained an EMI licence in the UK (despite the challenges posed by Brexit, the UK market remains a significant area of focus) and is working on obtaining one in the Netherlands.

Payabl CEO Ugne Buraciene on stage at the Reflect Festival in Cyprus

Payabl’s strategy involves separating certain lines of business between different jurisdictions. For example, while Cyprus handles a broad range of services, specific functions like payment processing and banking are being developed under various regulatory frameworks in the UK and the Netherlands. This strategic division allows for more specialised and compliant operations tailored to each market’s requirements.

Payabl’s growth has been further bolstered by its strategic partnerships with major players like Visa, Mastercard, and various regional payment solutions. These partnerships enable Payabl to offer comprehensive and integrated payment services, ensuring its clients receive reliable and well-supported solutions tailored to their needs. At Reflect, the company announced a new partnership with Zimpler, an instant payment company. This will enable Payabl’s customers to offer an additional instant payment option to their customers.

Payabl’s marketing communications strategy is strategically aligned with its business goals. Participation in significant tech and fintech conferences, such as Money20/20 and Reflect, where they were the headline sponsor for the Money Stage, is a crucial part of this strategy. These events provide valuable platforms for Payabl to showcase its products and services to a global audience.

While Europe remains a key market, Payabl is also setting its sights on Latin America for future expansion. The region’s vibrant and evolving fintech scene presents a wealth of growth opportunities.

Countries like Brazil exemplify the region’s potential with their forward-looking approach to financial technology and a strong desire for change driven by younger populations. Payabl’s expansion into Latin America reflects its strategic vision to tap into these emerging markets, leveraging its expertise to address local needs and challenges.

As Payabl continues to expand and evolve, it remains committed to leveraging Cyprus’s strategic advantages.

Once more, I am reminded that those countries that see tech, and fintech in particular, as an opportunity and build the regulatory infrastructure and incentives to support it can benefit massively from the future opportunities on offer. Lithuania, Dubai, and Cyprus are places I have recently visited – they can all see it. Each has its own distinct flavour. Companies such as Payabl are seeing the opportunity and seizing it. Fintech really is making the world go round!

About the author

Dave Wallace is a user experience and marketing professional who has spent the last 30 years helping financial services companies design, launch and evolve digital customer experiences.