Swiss Mobile Payments Market Still Sluggish

While one of the first things people think about when they hear the word “Swiss” is banks—probably immediately after “cheese”—there’s a surprising shortage of interest in mobile payments. A recent study from ZHAW and the University of St. Gallen showed just how deep that lack of interest ran.

The study found that just seven percent of all transactions in Switzerland were contactless in nature. Worse, just two percent of transactions involved mobile payment apps like Twint at all. Cash is king in Switzerland, but value-wise, it’s a shaky throne. Cash is used most frequently, but in terms of value, it’s just second place. A close second, though, at 36 percent just behind debit cards at 37 percent. Credit cards bring up the rear in third place at 23 percent. Some might say here that debit cards are essentially just a cash instrument, but that’s debatable.

That’s not to say mobile doesn’t have opportunity in Switzerland; 70 percent of respondents in the study could see themselves using mobile payments in the next three years. However, the primary bugaboo of mobile payments is alive and well in Switzerland; security was a major concern and reason to stay out of mobile payments.

So basically, for mobile payments firms who want a big quantity of new users in a major economic power that are ready to spend, all they’re going to have to do to seize a slice of the Swiss market is demonstrate two key points: One, mobile payments are safe and ready to go, and two, mobile payments can deliver value that cash and debit cards can’t. The better a job the mobile payments providers can do on those two points, the more likely they are to net the Swiss business, which is clearly ready to go and in a big way. With 70 percent of the country actively considering mobile payments—based on the survey, anyway—that’s a potential coup.

Thankfully, there are plenty of ways to demonstrate both security and value in mobile payments. Mobile payments sources likely have reams of data about their security by now and the fact that customers are using these programs every day without risk. If the mobile payments operators can make this case to the Swiss successfully, it’s likely a big payday is waiting.