STORY: Switzerland is finally catching up with the rest of Europe when it comes to electronic payments.
Swiss businesses and consumers can now enjoy ultra-fast electronic payments, with funds transferred within 10 seconds, instead of waiting days for transactions to be completed.
Electronic payments have been available in Europe since 2017 and in the United States since last year.
AI is a key capability driving such payments development.
But the Swiss are quite attached to physical money.
A survey conducted by the Swiss National Bank earlier this year found that cash remains the most accepted payment method at brick-and-mortar businesses.
This situation continues despite the widespread use of mobile payment apps.
The SNB reported that around 60 financial institutions are now able to receive and process instant payments.
This covers over 95% of Swiss retail transactions.
It also predicted that all Swiss financial institutions would join by the end of 2026.
“This market launch marks another important milestone and reflects the commitment of all stakeholders to the future of cashless payments in Switzerland,” the SNB report said.
According to the European Central Bank, the use of instant payments in Europe increased from 5.2% of all direct debit transactions in October 2019 to 17.8% in February this year.
