Apple and Samsung, the big IT companies, aren't the biggest worry of Thierry Kneissler. The head of the Swiss mobile payment system Twint is fighting habits – and that's a tough nut to crack in cash-loving Switzerland.
When Thierry Kneissler, the CEO of Twint, asked the hundreds of bankers in his audience on Monday whether they had ever made a transaction using a pay app, some 70 percent said yes. A huge percentage, according to the Twint CEO.
Asking the same audience who did so at least once a week, less than half responded with affirmatively. That may be a lot still, but nevertheless touches at the core of the problem: «We have to increase the number of repeated users.»
The Swiss citizen isn't easily convinced to give up on cash. Two thirds of all consumers are still using it in everyday life. And that's why Kneissler says: «Our primary enemy isn't Apple Pay, but cash.»
Laggard Switzerland
Switzerland lags countries such as the ones in the Nordic region by a mile and a half in respect to digital payments. Twint and Paymit may have some 500,000 users signed up by now, making them the biggest mobile payment service in the country of some 8.5 million people. In Sweden, a country of 9.5 million and similarly affluent, more than 4 million are using Swish, a comparable system to Twint.
«We are currently developing the link between payments and loyalty programs,» Kneissler said. He is convinced that the simple payment via a smartphone isn't enough to make the system worthwhile. Instead, customers are to be offered additional services to entice him to use the app more frequently.
That will distinguish Twint from Apple or Samsung, he says.
Ecosystem Payment App
The word Kneissler uses is ecosystem: Twint has a number of projects in the pipeline. Diners at restaurants for instance ought to be able to pay their bills using Twint. And the payment slips (in red and orange) won't survive much longer, as bills will be paid via Twint. The service will go life next year, Kneissler promised.
Of course, Apple is also working on the ecosystem. The giant from Cupertino is used to breaking up established structures and to take out intermediaries – such as in the music and film business.
The true test of strength of any payment app will be whether it is necessary to have several apps for payments and loyalty programs and whether it is able to replace the physical plastic card. The best payment systems will also work without the need for a password.
