Instant Payment System

Switzerland on the way to a cashless society

Swiss private individuals and companies can now transfer money to each other within seconds.(Bild: Elena Uve - stock.adobe.com)

Switzerland has taken another step towards a cashless society. The Swiss National Bank (SNB) and the stock exchange and financial infrastructure operator SIX have launched a new system for instant transfers between private individuals and companies.

"With immediate effect, around 60 financial institutions can receive and process instant payments," explained the SNB on Wednesday. "This covers more than 95 percent of Swiss customer payments." All financial institutions that are active in customer payment transactions are to be connected to the system by the end of 2026 at the latest.

Instant payment systems allow private individuals and companies to make transactions directly from account to account, which can be executed and processed at any time and within seconds. Funds are thus available immediately and, thanks to shorter processing routes, the susceptibility to errors is reduced. For companies and banks, instant transfers create additional scope for process automation and linking with other services.

Conventional transfers will remain possible, but the SNB and SIX expect instant payments to become established in Switzerland in the medium term. The central bank and SIX launched the project in November 2023. Instant payment systems are already in use in Europe and the USA.