The Swiss And Their Cash

Credit cards, debit cards and other forms of electronic payments have been becoming the dominant form of payments around the globe but particularly in Europe. Some European nations have even set goals of going completely cashless within the next decade. Despite that there is one major holdout in Europe where cash is still king: Switzerland.

Cash Is Still King In Switzerland

Switzerland is known as the banking capital of the world. While mobile payments have been introduced it is assumed that everyone carries cash on them, sometimes in large denominations. The Swiss government recently released a 1,000 franc banknote (about $1,006). Merchants have no issue with someone paying for a coffee with a 100 franc note and will always be able to make changes. Some banks even allow their clients to withdraw up to 5,000 francs per day. 

In a survey conducted by the Swiss National Bank it was found that 70% of all transactions were done with cash compared to 22% with a debit card and 5% with a credit card.

Cash Is Cultural

So why do the Swiss love cash and have not been as quick to join the cashless revolution going on around them? It is cultural. Many like the reassurance that they can pay for whatever they need with the cash in their wallet. The Swiss value privacy along with their traditions and don’t like being told what to do. They do not want to conform for the sake of conformity with their European neighbors. It is also a fear over the Swiss National Bank’s use of negative interest rates and the uncertainty that would come with that should wallets go from real to virtual. 

How Long Will This Last?

That is not to say that other forms of payments are not catching on, though many merchants still do not accept anything other than cash. Younger Swiss are beginning to use more electronic payment forms and that trend figures to continue but in a time when most Eurozone nations are phasing out larger bills in an attempt to fight crime the Swiss have bucked the trend. Cryptocurrencies are also becoming popular with younger Swiss.

So, if you are a holdout and only accept cash know that you are not alone. But even in a place like Switzerland where cash has always been king the times are changing. If you do not accept electronic payments you should. Don’t let modern commerce pass you by. Give JLE Business Consultants a call and we can help to make the transition easy enough that you will be questioning why you didn’t do this years ago.