Switzerland has taken a significant step towards becoming a cashless society with the introduction of its instant payment system, according to a statement made by the Swiss National Bank (SNB) and financial infrastructure provider SIX on Wednesday.

This new system enables funds to be transferred within seconds, rather than the typical few days required for cash transactions to clear. Instant payments ensure that the recipient’s account is credited within 10 seconds of initiating the payment order.

Approximately 60 financial institutions can now receive and process instant payments, covering over 95% of Swiss retail transactions, the Swiss National Bank announced after the scheme's launch on Tuesday.

The SNB also noted that additional banks would introduce similar services in the coming months, with the expectation that all financial institutions in Switzerland will be fully integrated into the system by the end of 2026, Reuters news agency reports.

“This market launch represents a further important milestone and reflects the collective stakeholder commitment to the future of cashless payments in Switzerland,” the SNB stated.

Although traditional payment methods remain available, the central bank anticipates that instant payments will become widely adopted in the medium term. 

The SNB and SIX initiated this project in November 2023 to align with Europe and the United States, which have had instant payment systems since 2017 and 2022, respectively.

Instant payments between banks minimise settlement risk since debits and credits occur immediately and are final, ensuring that both parties always have up-to-date account balances, making financial planning and budgeting more efficient. 

In addition, the acceleration of payments could stimulate economic growth by allowing companies to quickly reinvest the funds they receive.