Switzerland has taken a significant step towards a cashless society with the launch of its new instant payment system, announced by the Swiss National Bank (SNB) and financial infrastructure operator SIX. The system, which went live this week, allows for ultra-fast fund transfers, making payments available in the recipient’s account within just 10 seconds. This is a marked improvement from traditional payment methods, which often take days to process.
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The SNB revealed that around 60 financial institutions are now equipped to handle instant payments, covering over 95% of Swiss retail payment transactions. This represents a major shift in the country’s financial landscape and aligns Switzerland with other European nations, where instant payments have been in use since 2017, and the United States, which adopted similar systems last year.
Widespread Adoption by 2026
The Swiss central bank has set an ambitious target for the country’s financial institutions. By the end of 2026, all banks and financial institutions engaged in retail payment transactions are expected to offer instant payment services. Several banks have already introduced these services, and more are anticipated to follow in the coming months.
This rollout marks a pivotal moment for Switzerland, showcasing the collective effort of stakeholders to advance the future of cashless payments. Instant payments provide substantial advantages, including shorter settlement chains and immediate availability of funds. The SNB believes these features will lead to the widespread adoption of instant payments in the medium term, laying the groundwork for further innovation in the payments sector.
Balancing Instant Payments and Cash Preferences
Despite the shift towards instant payments, cash remains a deeply ingrained part of Swiss society. According to the SNB’s Payment Methods Survey conducted in February, over 90% of businesses with physical points of sale still accept cash. Moreover, while mobile payment app usage has grown significantly, from 40% in 2021 to 59% in 2024, there remains a strong preference for cash among the Swiss population.
The SNB acknowledges this sentiment, emphasizing that while instant payments will likely become the norm in the future, traditional payment methods, including cash, will continue to be available. This dual approach ensures that the transition to a cashless society will be gradual, respecting the preferences of the Swiss people.
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The implementation of instant payments is not just about convenience; it also has the potential to drive economic growth. The immediate settlement of transactions reduces settlement risk, ensuring that both parties have accurate, up-to-date account balances. This efficiency allows companies to reinvest received funds more quickly, potentially accelerating business growth and economic development.