In a historic shift for one of Europe’s most cash-affectionate economies, debit cards have overtaken cash as Switzerland’s most used in-store payment method, marking a symbolic turning point in the country’s monetary habits.

According to the Swiss National Bank’s (SNB) latest consumer payments survey, 35% of in-store transactions in 2023 were conducted via debit cards, compared with 30% using cash.

This represents a stark reversal from 2017, when physical currency accounted for a dominant 70% of all payments and debit card usage sat at just 21%.

Mobile payment apps now comprise 18% of transactions, while credit cards account for a further 14%.

Evolving Consumer Preferences

For a nation often viewed as a bastion of monetary conservatism, this pivot reflects not only evolving consumer preferences but also a broader structural shift in the Swiss payments ecosystem.

Cash, though still highly valued by many, is no longer the default.

The data comes at a time of rising debate over the future role of physical money in Swiss society.

Despite declining usage, Switzerland remains one of the world’s largest holders of cash on a per capita basis, with the average citizen holding over $10,000 in notes and coins – second only to Japan, according to the Bank for International Settlements.

Yet even in this traditionally cash-centric landscape, signs of transformation are everywhere.

Public transport providers are phasing out cash acceptance, and mobile payment solutions – led by domestic favourite Twint – are now accepted more widely than both debit and credit cards in many businesses.

The convenience and ubiquity of app-based payments are reshaping the day-to-day experience of Swiss consumers.

Nevertheless, the cultural significance of cash remains deeply embedded.

In 2023, the federal government pledged its support for a proposed constitutional amendment to safeguard the right to pay with cash, following a popular initiative backed by right-wing campaigners.

If the motion is not withdrawn, a national vote is expected in the coming years.

The SNB, while officially neutral on payment preferences, has warned of a “vicious circle” in which reduced usage could ultimately compromise cash availability.

As SNB President Martin Schlegel noted, “If the population wants to keep the current availability of cash, then it has to keep using cash.”

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