Switzerland takes steps towards a cashless society

Switzerland has launched an instant payment system, which allows money to be transferred in seconds. This system ensures that payments reach the recipient’s account within 10 seconds, a significant step forward compared to traditional payment methods that can take several days to process.

The Swiss National Bank and financial infrastructure operator SIX announced that around 60 financial institutions can now receive and process instant payments. This covers more than 95% of Swiss retail payments.

More banks will announce similar services in the coming months. By the end of 2026, all financial institutions in Switzerland are expected to be online. The central bank expects instant payments to become the norm in the medium term, although traditional payments are still possible.

Benefits of Instant Payments

Instant payments between banks reduce settlement risk because debit and credit transactions are immediate and final, and both parties always have a current account balance. This makes planning and budgeting easier. Speeding up payments can also boost economic development because businesses can reinvest the money they receive more quickly.

In November 2023, the Swiss National Bank and SIX launched the project to bring Switzerland into line with Europe and the United States, which have had instant payments since 2017 and last year respectively.

Key points

• Switzerland has launched its own instant payment system.
• This scheme allows money to be transferred within seconds.
• More than 60 financial institutions can now receive and process instant payments.
• All financial institutions in Switzerland are expected to participate by the end of 2026.

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