A new immediate payments solution has been introduced in Switzerland by the Swiss National Bank and SIX Interbank Clearing
The Swiss National Bank announced in a press release on Wednesday (Aug. 21) that this solution has enabled 60 financial institutions to receive and process immediate payments as of Tuesday (Aug. 20). According to the release, the new immediate payments service will be extended to all financial institutions that engage in retail payment transactions by the conclusion of 2026. The release stated that the 60 financial institutions that are currently processing immediate payments account for over 95% of Swiss retail payment transactions.
According to the release, this new solution enables private individuals and companies to conduct account-to-account (A2A) transactions that are executed and resolved in seconds, regardless of the time of day, including public holidays. The Swiss National Bank stated in the release that traditional transfers will remain feasible, that the bank and SIX Interbank Clearing anticipate the establishment of immediate payments in Switzerland in the medium term, and that they are dedicated to the future of cashless payments in the country.
The new immediate payment service was previewed by SIX in a press release on January 16, stating that it will provide solutions to both Swiss consumers and businesses and will support the future viability of payment traffic in Switzerland. According to the September edition of “The Real-Time Payments World Map,” a collaboration between PYMNTS Intelligence and The Clearing House, Switzerland’s existing TWINT system is complemented by this new real-time payments scheme, SIC5. According to the report, the number of real-time payments transactions in the country was 377 million in 2022 and is anticipated to increase to 1.4 billion by 2027, with a compound annual growth rate of 29%.
Read: Continuous Accounting ERP for Fintech With Forsys
Industry Comments
“Benefits include the immediate availability of incoming funds, e.g. even during off-peak hours or weekends,” SIX said in its press release. “This creates more scope for process automation, simplifies liquidity management and reduces settlement risk.” “This offers significant advantages for individuals, companies and commercial banks,” the Swiss National Bank said in the release. “Thanks to shorter settlement chains, risks are reduced and funds received are available immediately. For companies and commercial banks, instant payments expand opportunities for automating processes and linking with other services.”
We will be back with more exciting articles in the fintech domain!
Write to us for any suggestions.
