The results of the 2023 Swiss PaymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More Monitor conducted by the ZHAW School of Management and Law and the Center for Financial Services Innovation at the University of St. Gallen show that cashMoney in physical form such as banknotes and coins. More still plays a vital role in the payment behavior of the Swiss population, even after the Covid-19 pandemic.

• 29% of daily payments are made in cash – more than with a debit card (27%) or a credit card (18%).
• A further 18% of payments are made using a mobile device such as a mobile phone, tablet, or smartwatch. This includes payments directly via a bank account, for example, with TWINT, but also payments with a credit or debit card stored in an app, such as Apple Pay or Samsung Pay.

At the end of 2022, around 1,450 people representing the whole of Switzerland were interviewed for the study.

In Value Terms, Credit Cards Dominate

• In Switzerland, more moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More is spent with credit cards, accounting for 27% of sales. It even reaches 34 % of sales if mobile payments by credit card are counted.
• Payments with TWINT, usually processed directly via the bank account, still account for around half of the mobile payments.
• However, payments via Apple Pay, Samsung Pay, or Google Pay have increased in relative terms. The latter have increased significantly in terms of number and value in 2022.
• 28% of sales are settled via a debit card, while cash follows in third place with a 17% share of sales.
• “Cash is mainly used for small amounts of up to 20 francs, which is why it is used frequently, but plays a less important role in terms of value,” explains Tobias Trütsch, payment economist at the University of St. Gallen.

Large Amounts of Cash at Home

Cash use differs significantly according to demographic characteristics.

• People with a lower level of education and lower income use cash more often as a means of payment.
• While the under-30s use cash for 28% of payments, the proportion drops to 24% for those aged 30 to 44, only to rise to 38% for those over 60.
• Around every sixth person in Switzerland now does without cash altogether. This behavior is less common with increasing age, higher income, and in German-speaking Switzerland.
• According to the current survey, the average amount of cash that a person carries in their wallet or keeps at home has increased noticeably for the first time in three years. “One possible explanation for this behavior lies in the energy crisis feared for this winter, for which some of the population may want to arm themselves with higher cash reserves,” suspects ZHAW payment expert Marcel Stadelmann.

Neobanks Are Increasingly the Primary Bank Connection

More than every third person surveyed has used new online solutions from a neobank at least once.

• “The typical neobank user is male, younger than 45 years old, well educated and has a household income of more than 9,000 francs,” says Marcel Stadelmann. In addition, the proportion of neobank users in French-speaking Switzerland is 43% higher than in the rest of Switzerland.
• Revolut is used most frequently (15%), followed by the Swiss providers Neon (14%) and Credit Suisse CSX (11%). One and a half years after its launch, Yuh already has a usage share of 10%.
• 36% of users of neobanks use their offer as their primary means of payment or as their main bank account, which is seven percentage points higher than half a year ago.

Mobile Boom Benefits Credit Cards as Billing Product

As part of the regular examination of the payment behavior of the Swiss population, there are only minor changes compared to the last survey in November 2021.

• The debit card remains the most commonly used means of payment, followed by cash, which is still used for every third payment in face-to-face business.
• Mobile payment continues to grow in popularity.
• In the distance business, every second payment is processed using a mobile device, which also benefits the credit card as a billing product: every third payment from a distance is billed using a credit card.

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Documents

• Report Swiss Payment Monitor 2023-1_final_ENG