How do people prefer to pay online in Switzerland?

by
William Pilling
My articles My booksMy videos
Follow on:

The Internet today offers us a ton of alternatives that make our everyday lives easier. Products can be bought online, services can be booked and paid games can be played, among other things. However, all of this requires secure payment methods that meet the needs of their users. In recent years, the number of financial providers on the Internet has increased significantly. And since the selection is so large, the decision is not that easy. That’s why we took a closer look at which payment methods the Swiss prefer to help us in our choice!

Tried and tested: the credit card

When it comes to online shopping, many Swiss people rely on the tried and tested methods. Payment by credit card is therefore still the most popular payment method among the population. Around 28% of those surveyed during a 2020 study shared that they pay for the majority of their purchases and bookings with a VISA or Mastercard. And we can see why. The credit card has some clear advantages: payments are only debited at the end of the month. This allows owners to borrow money if they need to from their bank for a certain period of time. In addition, today’s credit cards are extremely secure. This is all thanks to protective measures such as the 3D Secure Process or Verified by Visa. With these protective features it has become much more difficult for hackers to access sensitive data. Not only that, but large eCommerce-Shops, such as Amazon still rely on selected payment options and do not have many new providers in their range. With credit cards, buyers can be sure that they will be accepted almost everywhere. However, paying by credit card is often not ideal for on the go, as you have to remember long combinations of numbers or take the card out of your wallet. That is why other methods are also growing in popularity.

Online wallets like PayPal are gaining more popularity

The second most popular payment method online is PayPal. Around 18% of those surveyed in the same study stated that they rely on PayPal as a financial provider for their payment processing. PayPal is certainly the most important eWallet at the moment, but of course not the only one. Providers such as Neteller also have a large customer base. Using such an eWallet brings many advantages. When paying online, no bank details are given to the seller, instead payment is simply made using the email address linked to the account. In addition, PayPal has buyer protection, which can come into effect if the purchase conditions are not complied with. However, the financial provider cannot guarantee whether you will get the paid amount back. Nevertheless, PayPal and Co. offer great security even with unknown shops and service providers. Payment is processed quickly and products can be shipped directly to your door. For example, if you order your food delivery with PayPal from the online delivery service Just Eat, it will be delivered to your front door without delay.

Immediate transfer as an individual solution

The Sofortüberweisung payment method (which is an online payment system for cashless payment on the Internet) is very popular online and is currently available in nine European countries. Switzerland is among these lucky few. However, this is not an eWallet, but rather a financial service provider that allows payers to use their existing accounts to make instant payments. Anyone who pays with Sofortüberweisung does not have to create a new account with the provider, but can rely on existing accounts. So the direct transfer, for example, is with your own bank account (if the bank is listed), with PayPal or a credit card, not an new account on the system. The payment is implemented directly, and the money arrives where it is supposed to safely and securely. This is particularly worthwhile for services or entertainment formats that can be used directly on the web. A good example of this is digital gaming platforms in the iGaming sector. Numerous slots with versatile designs are offered in the online casino. However, in order to play with real money, it must be deposited into the player’s account. The PokerStars Vegas platform offers instant transfer, among other things. This has two advantages: on one hand, the credit arrives in the account quickly, and you can start playing, on the other hand, you can combine the function with the payment options mentioned: for example with a VISA or Mastercard credit card or a normal bank account.

Overall, the Swiss are still increasingly using traditional payment methods such as credit cards. But eWallets and other online financial providers are also gaining their love. Slowly but surely, a shift is taking place here. Individual solutions such as immediate payments are also particularly practical because they can be combined with a large number of payment methods – even with your own bank account. And the financial landscape continues to grow: Even cryptocurrencies could be increasingly used for online payments in the future.