Digital Payment Methods Gain Ground in Switzerland: Visa Survey

Switzerland has witnessed a sharp surge in the preference for digital payment methods, a trend that seems to be cementing itself as a new norm. According to a Visa survey conducted in November 2023, 37% of participants now use smartphones or wearable devices like smartwatches for payments. The number is a significant leap from the 25% that was recorded in 2021.

The Digital Payment Landscape

The survey further revealed that 72% of Swiss people now prefer digital payment methods. This preference is not limited to the tech-savvy younger population. In fact, the older generation, those over 60, is also catching up. The survey showed that 25% of this demographic have used mobile payment methods, marking a 14% rise from the previous year.

It appears that the ease and convenience of digital payments are gaining widespread acceptance across all age groups. Younger individuals under 36 are even more inclined towards these modern payment solutions, with more than half having used them at checkout.

Geographical Trends and Consumer Behavior

Interestingly, the trend is not uniformly spread across Switzerland. There's a growing tendency among consumers, particularly in the French-speaking part of Switzerland and Ticino, to avoid stores that don't offer digital payment options. This is a clear indication of how consumer behavior is shaping business practices and pushing for the adoption of new technologies.

Artificial Intelligence and the Future of Digital Payments

With the rise in digital transactions, the risk of fraud also increases. To mitigate this risk, artificial intelligence (AI) is being harnessed to detect criminal activities in the banking sector. AI can lighten the workload of analysts by improving detection speed and efficiency. The AI Lab for Sustainable Finance is partnering with the financial sector to develop solutions for fraud detection.

However, challenges remain. The lack of data and the ever-changing modus operandi of criminals pose significant hurdles for AI models. Yet, the adoption of AI solutions in the financial industry is still in its early stages, leaving ample opportunities for progress in optimizing decision-making processes.

In conclusion, the survey, which has been conducted annually since 2023 by Visa in collaboration with the market research institute forsa, has gathered data from around 1000 Swiss consumers aged 18 and above. The insights gained from this data have been instrumental in understanding the shifting attitudes and behaviors towards digital payments, a trend that is likely to continue in the foreseeable future.

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