Swiss launch instant payments to catch up with Europe

STORY: Switzerland is finally catching up with other European countries when it comes to electronic payments.

Swiss companies and consumers are now able to make ultra-fast electronic payments that allow credit transfers within 10 seconds, instead of waiting days for a transaction to clear.

Electronic payments have been around in Europe since 2017 and in the U.S. since last year.

AI is a key feature that powers the development of such payments.

But the Swiss have been quite attached to their physical money.

According to a Swiss National Bank survey earlier this year, cash remains the most accepted method of payment by companies with physical points of sale.

That's despite the rise of mobile payment apps.

The SNB reported that around 60 financial institutions are now able to receive and process instant payments.

That covers more than 95% of Swiss retail transactions.

They also predicted that all financial institutions in Switzerland will be on board by the end of 2026.

The SNB report stated, "This market launch represents a further important milestone and reflects the collective stakeholder commitment to the future of cashless payments in Switzerland.’’

According to the European Central Bank, the use of instant payments in Europe has risen from 5.2% of all credit transfers in October 2019… to 17.8% in February this year.