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Swiss Banks Dive Into Instant Payments, Capturing 95% of Retail Transactions

Pat Crawley Pat Crawley Send an email
0 20 15 minutes read
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Wednesday, 21/08/2024 | 08:24 GMT by Tareq Sikder

  • The SNB expects full adoption of instant payments by all banks by 2026.
  • Around 60 Swiss banks now process instant payments, enabling transfers within 10 seconds.

Switzerland

FM

Switzerland has taken a substantial step toward becoming a cashless society with the launch of its instant payment scheme. The Swiss National Bank (SNB) and financial infrastructure operator SIX made the announcement on Wednesday. This new system allows funds to be transferred within seconds rather than waiting days for transactions to clear.

Launching Instant Payments

Instant payments work as credit transfers, with funds available in the recipient’s account within 10 seconds of the payment order being made.

According to the SNB, around 60 financial institutions can now process and receive instant payments. This development covers over 95% of Swiss retail payment transactions. The scheme was launched on Tuesday.

The central bank expects more banks to adopt similar services in the coming months. The SNB indicated that all financial institutions in Switzerland are expected to offer instant payments by the end of 2026.

Instant payments were launched in the Swiss market on 20 August 2024. Instant payments allow private individuals and companies to perform account-to-account transactions with immediate execution and final settlement in seconds.https://t.co/RdiupYG3Sm pic.twitter.com/UZkMUvr3o3

— Swiss National Bank (@SNB_BNS) August 21, 2024

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

Earlier, SIX, the Swiss National Bank (SNB), and six commercial banks launched a pilot project exploring the use of tokenized central bank money, known as wholesale central bank digital currency (wCBDC), as reported by Finance Magnates.

The initiative, referred to as Helvetia Phase III, represents the first application of wCBDC for settling digital securities transactions in Swiss Francs. The pilot will take place on SIX Digital Exchange, a regulated financial market infrastructure for digital assets built on Distributed Ledger Technology.

Instant Payments Reduce Risks

Though traditional payment methods remain available, the SNB believes instant payments will become the standard in the medium term. The central bank and SIX initiated the project in November 2023, aiming to keep pace with Europe and the United States, where instant payments have been available since 2017 and 2022, respectively.

Instant payments between banks reduce settlement risks. The debit and credit occur instantaneously, providing both parties with up-to-date account balances.

Switzerland has taken a substantial step toward becoming a cashless society with the launch of its instant payment scheme. The Swiss National Bank (SNB) and financial infrastructure operator SIX made the announcement on Wednesday. This new system allows funds to be transferred within seconds rather than waiting days for transactions to clear.

Launching Instant Payments

Instant payments work as credit transfers, with funds available in the recipient’s account within 10 seconds of the payment order being made.

According to the SNB, around 60 financial institutions can now process and receive instant payments. This development covers over 95% of Swiss retail payment transactions. The scheme was launched on Tuesday.

The central bank expects more banks to adopt similar services in the coming months. The SNB indicated that all financial institutions in Switzerland are expected to offer instant payments by the end of 2026.

Instant payments were launched in the Swiss market on 20 August 2024. Instant payments allow private individuals and companies to perform account-to-account transactions with immediate execution and final settlement in seconds.https://t.co/RdiupYG3Sm pic.twitter.com/UZkMUvr3o3

— Swiss National Bank (@SNB_BNS) August 21, 2024

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

Earlier, SIX, the Swiss National Bank (SNB), and six commercial banks launched a pilot project exploring the use of tokenized central bank money, known as wholesale central bank digital currency (wCBDC), as reported by Finance Magnates.

The initiative, referred to as Helvetia Phase III, represents the first application of wCBDC for settling digital securities transactions in Swiss Francs. The pilot will take place on SIX Digital Exchange, a regulated financial market infrastructure for digital assets built on Distributed Ledger Technology.

Instant Payments Reduce Risks

Though traditional payment methods remain available, the SNB believes instant payments will become the standard in the medium term. The central bank and SIX initiated the project in November 2023, aiming to keep pace with Europe and the United States, where instant payments have been available since 2017 and 2022, respectively.

Instant payments between banks reduce settlement risks. The debit and credit occur instantaneously, providing both parties with up-to-date account balances.

Tareq Sikder

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A Forex technical analyst and writer who has been engaged in financial writing for 12 years.

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