How Do Instant Payments Work in Switzerland?

Of course, we also have to pay for the products and services we purchase. But how fast does this payment actually go through? Mentally, we’ve always considered the money spent to be immediately “deducted.” In our perception, after entering the PIN or clicking “Pay,” the money belongs to the recipient right away.

However, until recently in Switzerland, the reality was different—the owed amount often arrived with a delay, sometimes taking hours or even days, depending on the time of day and the day of the week. But since August 2024, things have changed. Now, Switzerland’s payment infrastructure keeps pace with the fast-moving society. With the introduction of instant payments, the foundation for real-time transfers—also known as Instant Payments—has been established in Switzerland.

Since August 2024, all banks that processed more than 500,000 incoming customer payments in the SIC system in 2020 are now capable of handling instant payments. This covers about 95% of Swiss customer payments, with the remaining banks expected to follow by 2026. This means that the infrastructure for instant payments is now in place. However, it will still take some time before instant payments become the standard.

The current Swiss payment process is secure, efficient, and – as described above – generally seamless and satisfactory for consumers. The Swiss Interbank Clearing (SIC) system, operated by SIX on behalf of the Swiss National Bank, connects bank accounts and ensures smooth transactions.

Technically, SIC has been capable of processing real-time payments for decades. However, for instant payment to function across the entire payment chain, operational and organizational adjustments were required, particularly in the interfaces between banks and SIX. With the launch of the fifth generation of SIC at the end of 2023, SIX established the necessary technical framework for processing instant payments in line with the European SEPA Instant Credit Transfer standard.

Contrary to popular belief, the Swiss mobile payment solution TWINT, which allows users to send money to others up to a certain limit, does not process payments in real-time. Instead, the immediacy is only simulated. The recipient’s bank does not receive the money instantly; rather, it pre-finances the transaction and temporarily displays the amount as available credit in the customer’s account.

In the EU, "true" real-time transfers have been a reality for some time. The SEPA Instant Credit Transfer system, introduced in 2017, has provided the foundation for instant payments in euros.

Even after the technical rollout of instant payment in the Swiss payment system, it will likely take some time before it becomes the new standard. In the EU, where SEPA Instant Credit Transfer has been in place for seven years, the share of real-time transactions stood at around 21% as of December 2024.

Infrastructure is one thing—widespread adoption is another. The future success of instant payment will largely depend on the innovation potential of consumer goods and service industries. According to the Swiss National Bank's monetary policy assessment from September 2024, instant payments are expected to establish themselves as the new standard for electronic payments in the medium term, with competitive pricing models.

But instant payment goes far beyond mobile and online banking transactions. Just imagine the Internet of Things—where your smart fridge not only detects that you’re out of milk but orders and pays for it in real-time.