Swiss companies and consumers are now able to make instant electronic payments, catching up with other European financial centers where ultra-fast transfers are becoming increasingly popular.
Instant payments allow credit transfers to be completed within 10 seconds of making a payment, instead of waiting days for the transaction to finalize. They have been in use in Europe since 2017, and in the US since last year.
In Europe, the use of instant payments has grown from 5.2% of all credit transfers in October 2019 to 17.8% in February this year, according to data from the European Central Bank.
Around 60 financial institutions are capable of receiving and processing instant payments, covering more than 95% of Swiss retail payment transactions, according to the Swiss National Bank (SNB), which launched its scheme with financial systems provider SIX.
In the coming months, other banks are expected to announce similar services, SNB said, with all financial institutions in Switzerland expected to be included by the end of 2026.
Despite the rise of mobile payment apps, the Swiss remain attached to physical cash, which remains the most widely accepted payment method by companies with physical retail locations.
“This market launch represents another important milestone and reflects the collective commitment of stakeholders towards a cashless payment future in Switzerland,” SNB stated.
Photo: Swiss National Bank/snb.ch