According to a survey by the Swiss National Bank, cash payments have declined since 2017, in favor of debit and credit cards. The Covid-19 pandemic played a role in this transformation in usage, and accelerated the rise of cashless payments.
The decline of cash in favor of bankcards
The Swiss, who have long been reluctant to pay for their purchases in anything other than cash, are gradually turning to cashless payments, particularly credit and debit cards.
According to the results of a recent survey by the Swiss National Bank, while 70% of non-recurring payments were made in cash in 2017, their share has fallen significantly and will represent just 43% of non-recurring transactions in 2020.
At the same time, the share of debit card payments has risen from 22% in 2017 to 33% in 2020, as has the share of credit card payments, which is now 13% compared with just 5% in 2017. The majority of bankcard payments are contactless, a phenomenon amplified by the Covid-19 pandemic.
"The Covid-19 pandemic has further accelerated changes in the use of payment instruments. A third of those surveyed said they had permanently changed their payment habits, and were paying more by card as a result of the pandemic", detailed the Swiss National Bank in a press release.
As for mobile payment applications, they have also made progress, even if their use remains in the minority. In 2020, they accounted for 5% of transaction volume, and 4% of total value. 48% of those surveyed said they had a mobile payment application.
The Swiss remain attached to the 1,000 franc bill
Unlike most other industrialized countries, which are gradually phasing out high-denomination banknotes, the Swiss still frequently use 1,000-franc bills (912 euros) to pay for expensive purchases. In the euro zone, 500-euro banknotes will no longer be issued from the end of April 2019, to combat the financing of terrorism and illegal activities.
By contrast, in Switzerland, 40% of those surveyed said they had been in possession of a 1000 franc bill at least once in the last two years, with this figure rising to 80% for 200 franc bills. At the end of 2020, 200 and 1000 franc bills accounted for 76% of all banknotes in circulation in the country. These denominations are mainly used to pay for goods and services.