Switzerland has officially launched an instant payments system, enabling most companies and individuals in the country to settle payments in seconds.

This significant development, which took effect on 20 August 2024, is expected to bring substantial benefits to both businesses and consumers in the Central European country.

The Swiss National Bank (SNB) and SIX Interbank Clearing Ltd said that the new system now covers approximately 95 per cent of retail payment transactions. Currently, around 60 financial institutions in Switzerland are equipped to process these instant payments, ensuring that funds are transferred within a maximum of ten seconds. This service is available 24 hours a day, seven days a week, including public holidays.

The remaining financial institutions involved in retail payments are expected to be integrated into the system by the end of 2026.

Instant payments allow both private individuals and companies to conduct account-to-account transactions with immediate execution and final settlement. The service offers a significant advantage over traditional transfers, which may take hours or even days to complete. With instant payments, recipients have immediate access to transferred funds, reducing settlement risks and enhancing the overall efficiency of financial transactions.

The SNB and SIX highlighted that this development will likely become a cornerstone of Switzerland’s financial landscape in the medium term, paving the way for further innovations in cashless payments. Companies and commercial banks are expected to benefit from increased opportunities for process automation and integration with other services, thanks to the shorter settlement chains and reduced risks associated with instant payments.

This launch follows the successful implementation of a new generation central Swiss payment system in November 2023, which provided the necessary technical framework for instant payments. Traditional transfer methods will continue to be available, but the introduction of instant payments marks a significant step forward in modernising Switzerland’s payment infrastructure, aligning it more closely with similar systems already in place in the euro area.

---