Switzerland has joined the ranks of European countries offering instant payments, a significant leap for a nation traditionally attached to physical cash.
Launched by the Swiss National Bank (SNB) in partnership with SIX, this system enables credit transfers within 10 seconds, covering 95% of Swiss retail payment transactions.
While instant payments have grown in Europe since 2017, Switzerland’s entry into the field is part of a broader push to transition toward a cashless society by 2026.
Instant payments offer numerous advantages. They reduce settlement risks and enable real-time account balance updates for both individuals and businesses.
This facilitates faster reinvestments and improved cash flow management for companies, potentially boosting economic activity.
Moreover, SNB believes that the integration of instant payments will lay the foundation for further innovation in the payments sector, such as additional digital financial services.
Cash-Dependent Country
Despite this progress, Switzerland remains one of Europe’s most cash-dependent countries.
The SNB’s latest survey revealed that cash is still widely accepted, with over 90% of businesses handling face-to-face transactions accepting cash.
Additionally, while mobile payment app acceptance has risen, cash continues to dominate. In 2020, 43% of all retail transactions in Switzerland were still conducted in cash, reflecting a deep-seated cultural attachment to physical money.
However, the adoption of instant payments is a clear signal of the nation’s intent to modernise its payments infrastructure.
The SNB anticipates widespread adoption of this system across all Swiss financial institutions by 2026, allowing for seamless account-to-account transfers at any time of the day or night.
This real-time functionality is expected to enhance convenience for consumers while offering significant benefits to businesses, such as better cash flow visibility and planning.
As more financial institutions and banks come on board with instant payments in the coming months, the transition is expected to gain momentum.
The SNB views this as a crucial step towards establishing a cashless payment environment in the country, providing a secure, efficient, and modern alternative to traditional payment methods.
This balance between innovation and tradition will be key as Switzerland evolves into a leader in modern payment solutions.
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