The pandemic has led to the breakthrough of contactless payments. A quarter of all Swiss citizens no longer have any cash in the wallets.
The system allowing payments to be executed without physically touching a terminal and using smartphone apps have surged in Switzerland as a consequence of the Covid-19 crisis. The banking industry and payment system providers had increased the upper limit for such payments to 80 Swiss francs ($88) from 40 francs after the outbreak of the virus in Switzerland.
Smartphone Payment Apps on the Increase
Raising the limit was the main reason why the use of the contactless payment option surged, according to a survey by Comparis, which polled 1,011 people. 75 percent of consumers in Switzerland are using contactless payment, up from 60 percent a year ago.
The use of smartphone apps however is still relatively insignificant with a share of 7 percent. A year ago, Apple Pay, Samsung Pay and Twint stood at 2 percent.
Cash Is Losing Out
The use of cash however has declined substantially. Before corona, 39 percent of consumers used cash on a daily basis. Since the outbreak, only a quarter are still resorting to cash, Comparis said. The survey concluded that the fall in the use of cash was due to the concern about being infected.
Many shops had also urged consumers to use their cards for payments, which meant that the decline may only partially have been a decision taken voluntarily.
