Mobile Payments Overtake Debit Cards and Cash as Top Payment Method in Switzerland, According to ZHAW and University of St.Gallen Report

Mobile Payments Overtake Debit Cards and Cash as Top Payment Method in Switzerland, According to ZHAW and University of St.Gallen Report

(IN BRIEF) The latest Swiss Payment Monitor report reveals that mobile payments have become the most popular payment method in Switzerland, surpassing debit cards and cash for the first time. Mobile devices now account for 26.8% of all transactions, driven by the growing use of platforms like Twint and e-wallets such as Apple Pay and Google Pay. Despite this shift, debit cards remain the top choice for in-store payments, though mobile payments are quickly gaining ground. The report also highlights that while Bitcoin is widely recognized, only a small percentage of the population fully understands it, and it is primarily viewed as an investment rather than a payment method.

(PRESS RELEASE) ST. GALLEN, 22-Aug-2024 — /EuropaWire/ — The latest findings from the Swiss Payment Monitor, conducted by the ZHAW School of Management and Law and the University of St.Gallen, reveal a significant shift in consumer payment preferences in Switzerland. For the first time, mobile payments have emerged as the leading method of payment, both in terms of transaction volume and the number of transactions.

In a study surveying 1,700 individuals across Switzerland between April and May 2024, mobile devices such as smartphones, tablets, and smartwatches accounted for 26.8% of all payment transactions. This marks a 3.5 percentage point increase from the previous survey, surpassing traditional debit cards (26.2%) and cash (25.7%).

Despite this shift, debit cards remain the most popular payment method for in-store transactions, used in 30.1% of cases. However, mobile payments are rapidly gaining ground, now accounting for 20.1% of in-store payments—a 3.8 percentage point increase. Mobile payment platforms like Twint, as well as e-wallets such as Apple Pay, Samsung Pay, and Google Pay, are driving this trend.

Credit cards are also benefiting from the rise in mobile payments, with 23.6% of local payments now made using credit cards—a 2.0 percentage point increase. This growth is largely attributed to the integration of credit cards with mobile payment platforms.

The study also highlights the role of Bitcoin in Switzerland’s financial landscape. While Bitcoin is widely recognized, with 96% of the population familiar with it, only 11% have a comprehensive understanding of it. Around 14% of respondents own Bitcoin, primarily viewing it as an investment rather than a payment method.

The Swiss Payment Monitor, first published in 2018, offers valuable insights into the evolving payment habits of the Swiss population. Published biannually, the study draws on representative survey data and public information from the Swiss National Bank.

For more information on the Swiss Payment Monitor and the latest trends in payment behavior, visit the ZHAW School of Management and Law and the University of St.Gallen’s websites.

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SOURCE: University of St. Gallen