Switzerland’s Love Affair with Cash Continues Despite Rise of Payment Apps
Switzerland’s Preference for Physical Money
Despite the increasing popularity of mobile payment apps, Switzerland remains deeply attached to banknotes and coins, as revealed by a recent survey conducted by the central bank. This sentiment defies the predictions of a cashless society, with cash still reigning as the most favored payment method among customer-facing businesses like shops and restaurants.
Acceptance of Cash vs. Payment Apps
According to the study, around 92% of Swiss businesses that interact directly with customers prefer cash over payment apps like Google Pay. In fact, only 59% of these establishments accept payment via apps, showcasing the strong hold physical money has in the country.
Shift Towards Mobile Apps
While cash remains dominant, there is a gradual shift towards mobile payment apps in Switzerland. The acceptance rate of these apps has increased from 40% in 2021, surpassing credit and debit cards in popularity. This shift indicates a growing trend towards digital transactions.
Payment Methods for Remote Transactions
For Swiss companies engaging in remote transactions, bank transfers are the preferred mode of payment, followed by invoices and then cash. This preference highlights the adaptability of businesses to cater to varying customer needs and preferences.
Political Implications and Concerns
The availability and acceptance of physical money have become a political issue in Switzerland, with concerns raised about the potential marginalization of certain demographics due to limited access to payment apps or cards. The decline in the number of banks and cash machines further complicates the issue, prompting discussions and referendums on the topic.
Switzerland’s unique stance on cash and digital payments reflects a nuanced approach to financial transactions, balancing tradition with technological advancements. As the world moves towards a cashless future, Switzerland’s love for physical money serves as a reminder of the importance of diverse payment options and inclusive financial systems.
