In a significant shift for Switzerland’s financial culture, cash has been dethroned as the most popular payment method, according to a recent survey by the Swiss National Bank (SNB). For the first time, debit cards have surpassed cash as the preferred payment option among Swiss residents.

The triennial survey, which assessed payment behaviors in 2023, revealed that debit cards now account for 33% of transaction volume, while cash payments have declined to 30%. This marks a substantial change since the previous survey in 2020, when cash represented 43% of transactions compared to debit cards at 25%.

Digital Transformation Accelerates

The COVID-19 pandemic has accelerated Switzerland’s transition toward digital payment methods, with contactless payments gaining significant traction. Despite this shift, Switzerland continues to maintain a stronger affinity for physical currency than many of its European neighbors.

Swiss residents still carry an average of 60 francs in their wallets, though this represents a decrease from the 80 francs recorded in the previous survey. The SNB notes that cash remains particularly important for smaller transactions and spontaneous purchases, with 86% of payments under 5 francs still made using physical currency.

The central bank’s research indicates that payment preferences vary notably across demographic groups. Cash usage tends to be higher among older individuals and in the Italian-speaking regions of Switzerland. Meanwhile, digital payment methods find more favor with younger populations and in German-speaking areas.

Credit cards have maintained a relatively stable position in the payment landscape, accounting for 13% of transactions in both the 2020 and 2023 surveys. Mobile payment applications have doubled their share to 8%, reflecting growing consumer comfort with smartphone-based transactions.

Despite the decline in everyday cash usage, Swiss citizens continue to value physical currency as a store of value. The SNB reports that approximately 70% of respondents keep cash reserves at home, with the median amount being 1,000 francs. These reserves are primarily maintained for emergencies, with many citing potential system failures or crises as motivating factors.

The central bank emphasizes that it remains committed to ensuring access to physical currency despite the digital transition. The SNB’s survey found that 90% of respondents considered it important to maintain the option to pay with cash, underscoring its cultural significance within Swiss society.

Switzerland’s evolving payment landscape mirrors global trends toward digital transactions while reflecting unique aspects of the country’s financial culture. As contactless and mobile payment options continue to expand, the balance between traditional and digital methods is likely to shift further, though cash appears poised to retain an important role in Swiss financial life for the foreseeable future.