It is a very striking development in Switzerland. Since Tuesday, August 20, 2024, 95% of retail payment transactions can be made via instant payments. About sixty financial institutions participate in this system which today covers most of the pays. By the end of 2026 at the latest, all banks and active financial institutions on the market will have to offer this option.
The Swiss National Bank (BNS) reaffirmed its ambitions last year:
Instant payments allow individuals and businesses to carry out accounts on account with immediate execution and final settlement in a few seconds, 24 hours a day. This deployment constitutes an important milestone and testifies to the collective commitment in favor of the future of payments without cash in Switzerland.
Concretely, a transaction set instantly, 24 hours a day, allows for example a merchant to immediately launch the sending of a product purchased online. This technology also improves payment safety, with a significant reduction in the risk of fraud.
What is it for?
There remains a question of size, in addition to security what is the concrete interest of this functionality for consumers? Cited at the time by our colleagues from RTSArthur Jurus, strategist leader in private banking Oddo BHF Switzerland, saw it as a guarantee of simplification for customers:
Users will be able to make payments without the need for physical cards, which will significantly simplify transactions, making them faster and with lower costs.
Despite these advances, the Swiss remain attached to cash payment. A large majority wish that cash continues to be available as a means of payment, and almost 90% of companies still accept the cash in their physical transactions.
In addition, discussions are underway in Parliament to consider constitutional protection of the cash supply. A citizen initiative has been initiated to ensure that customers can continue to pay in cash.
Finally, note that the BNS plans to strengthen the technical system of instant payments with permanent ease of liquidity 24/7, expected for the end of 2027, in order to guarantee their fluid operation at any time. It is not in Switzerland where this debate agitates the inhabitants. We were talking to you recently about China where cash payment gradually disappears.
What to remember:
- Switzerland has just taken a giant step towards instant payments
- This feature is accessible for 95 % of transactions in the country, and it will soon be 100 %
- Despite these innovations, the inhabitants remain however attached to the possibility of paying in cash
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