The Swiss National Bank (SNB) has announced the launch of instant payments, enabling Swiss consumers to transfer money within seconds.
Following the 20 August launch, around 60 financial institutions can now process instant payments, covering over 95% of Swiss retail transactions. By the end of 2026, all institutions in retail payments will be reachable. Some have already introduced instant payment services, with more banks set to follow in the coming months.
Instant payments enable individuals and companies to complete account-to-account transactions instantly, with final settlement occurring within seconds, 24/7, including on public holidays.
This provides companies and commercial banks with a range of benefits. Significant advantages for individuals, companies, and banks include reduced risks due to shorter settlement chains, immediate availability of funds and opportunities to automate processes and integrate with other services.
The Bank has highlighted that traditional transfers will remain an option. However, the SNB and SIX Interbank Clearing Ltd expect instant payments to gain traction in Switzerland over the medium term, potentially serving as a foundation for future innovations in payment transactions.
In a release, the SNB said: “The technical framework for this new type of payment was put in place with the successful go-live of the new generation of the central Swiss payment system in November 2023. This market launch represents a further important milestone and reflects the collective stakeholder commitment to the future of cashless payments in Switzerland.”
Instant payments are progressing across the world, with more countries welcoming the payment option such as Namibia earlier this year.
Additionally, there have been important steps taken regarding the regulation of instant payments. In July, the Bank for International Settlements (BIS) and partners announced they are moving toward phase four of Project Nexus, aiming to standardise the way domestic IPS connect to one another.
The EU is experiencing a similar shift, with the latest changes marked by the introduction of the first wave of the Instant Payments Regulation (IPR). Last week, Karthik Jagannathan, Head of Payments Advisory at Intix, discussed with Payment Expert the IPR’s impact on the industry, what stakeholders can anticipate and how they can adapt.
