Key Takeaways:
- 💸 Instant payment scheme launched in Switzerland on August 20, 2024
- ⏱ Funds transferred in seconds, providing immediate execution and final settlement
- 🏦 Over 60 financial institutions participating, covering over 95% of Swiss retail transactions
- 🔄 All financial institutions in retail payments will be reachable by end-2026
- 🌐 Necessary technical conditions created for instant payments in the Swiss payment system
The Future of Instant Payments in Switzerland
Switzerland has taken a significant step towards a more efficient and modern payment system with the introduction of instant payments on August 20, 2024. This new instant payment scheme allows funds to be transferred in seconds, providing immediate execution and final settlement for individuals, businesses, and commercial banks.
With over 60 financial institutions participating in the scheme, instant payments now cover more than 95% of Swiss retail transactions. By the end of 2026, all financial institutions active in customer payment transactions will have the capability to process instant payments, making it easier and faster for individuals and businesses to transfer money.
The introduction of instant payments not only shortens settlement chains and reduces risks but also ensures the immediate availability of transferred amounts. Despite the implementation of instant payments, traditional bank transfers will still be possible in Switzerland. However, it is anticipated that instant payments will become the norm in the medium term.
The new generation of the Swiss payment system has created the necessary technical conditions for instant payments, paving the way for a cashless future in Switzerland. Overall, the launch of instant payments is a crucial development that will benefit the Swiss financial landscape and enhance the overall payment experience for both consumers and businesses.