Switzerland launches instant payments scheme by Reuters

ZURICH (Reuters) – Switzerland moved closer to becoming a cashless society after it launched its instant payment scheme, which allows funds to be transferred in seconds, the Swiss National Bank and financial infrastructure operator SIX said on Wednesday.

Instant payments are credit transfers that make funds available in the recipient’s account within 10 seconds of making the payment order, rather than waiting days for the cash to clear.

Around 60 financial institutions are now able to receive and process instant payments, covering more than 95% of Swiss retail payment transactions, the SNB said after the scheme was launched on Tuesday.

In the coming months, other banks will announce similar services, the SNB said, with all financial institutions in Switzerland expected to be on board by the end of 2026.

“This market launch represents an important new milestone and reflects the collective commitment of stakeholders to the future of cashless payments in Switzerland,” the SNB said.

While traditional payments are still possible, the central bank expects instant payments to be established in the medium term, the central bank added.

The SNB and SIX started the project in November 2023 to catch up with Europe and the United States, which have had instant payments since 2017 and last year respectively.

Instant interbank payments reduce settlement risk as debit and credit are instant and final, while both parties have an up-to-date account balance at all times, making planning and budgeting easier.

Speeding up payments could also boost economic development as companies can more quickly reinvest the money they receive.