Cash still king for Swiss businesses, central bank survey shows

CASH is still the most accepted payment method for Swiss businesses, the Swiss National Bank (SNB) said on Wednesday (Oct 9), despite plans by some companies to reduce their acceptance of notes and coins in future.

Physical money is still accepted by 98 per cent of the 770 companies in the survey of retailers, public transport companies, service providers like hairdressers as well as cultural and entertainment facilities.

The respondents said customers still wanted the option of paying in cash, while the payment means was also crisis resistant and offered a cost-effective alternative to cashless payment methods.

“The surveyed companies continue to view cash as important,” the survey said.

The findings of the SNB survey contrast with the experience of countries such as Sweden which have become increasingly cashless.

Switzerland has long had an affinity for physical money and still has a 1,000 Swiss franc (S$1,522) note – one of the world’s highest-value notes.

Still cashless systems are encroaching, with many public transport companies planning to reduce their cash acceptance in future, citing the cost and effort of returning excess money.

Companies said that the services of banks and cash-in-transport companies are too expensive, while there are too few cash machines and counters.

The number of Swiss branches has fallen 21 per cent in the last 10 years, with the trend set to continue with UBS closing 85 branches by 2025 following its consolidation of its fallen rival Credit Suisse. REUTERS