Focus
AI has become indispensable in everyday banking. High-quality payment data is critical for personalized experiences and efficient AI applications. Payment enrichment improves data quality and optimizes key processes.
8 July 2026
Experts
Service bureaus have been central players in Swiss payments since the 1990s. They transmit payment orders and ensure data integrity. The SNB has published formal requirements to ensure security and efficiency.
Panorama
The integration of AI and deep learning will affect the future of payment systems, including for cross-border transactions. Research suggests that AI promises greater efficiency, security, and compliance for traditional payment systems.
The PCI DSS 4.0 standard protects credit card data with enhanced security measures such as multi-factor authentication and risk-based approaches. These measures increase the security and transparency of payment transactions.
Talk
Helge Kraas, PPI AG, talks about artificial intelligence in payments. The focus will be on fraud detection, instant payments, e-invoices, Request to Pay, personalized financial services, regulation, financial crime and judicious AI decisions.
Mergers and new technologies have made banks’ payment infrastructures more complex. Changes require planning and testing. New drivers such as ISO 20022 and instant payments often overwhelm systems. Regulators demand greater capacity and security.
Only one country operates both a CBDC and an instant payment system to increase financial inclusion and efficiency. However, different standards and technologies make interoperability difficult. Some countries are considering wholesale CBDCs instead.
In German e-commerce, high processing costs are incurred for some payment methods. On average, it costs 10 euros if something goes wrong during a purchase and payment process. One in twenty advance payment transfers and payments on invoice requires manual processing.
Switzerland uses bLink for the secure exchange of data between banks and fintechs. The EU is planning mandatory access to customer data with FiDA. The challenges here are data protection and acceptance. This could influence competition and put Switzerland under pressure.
5 December 2024
Older people are increasingly using digital means of payment. In the DACH region, the use of contactless payments among people over 65 years of age rose to over 60% in 2023. The trend away from cash and toward digital payments is unstoppable worldwide, including among seniors.
Prof. Fabian Schär explains that open banking is often uninteresting for end users, but that such an architecture can promote transparency and competition. DeFi offers options for holding assets yourself. A financial system without this option is not ideal.
5 September 2024
Cash is becoming less important, but it still has a role to play. Since the number of ATMs in Switzerland is declining, pooling is a suitable solution for saving costs and ensuring access. Other countries, such as Sweden and Finland, are already successfully using pooling.
Embedded finance allows for the direct integration of financial services into other platforms, such as travel insurance when booking flights. This practice is gaining in importance worldwide. In Switzerland, it is not yet widespread, but could increase significantly in the near future.
Central bankers like CBDCs, but the risks often outweigh the benefits. In Nigeria, a CBDC has failed despite high approval. In Canada and the EU, interest is low. In Japan and Switzerland, the people will ultimately decide on their introduction.
The use of instant payments (SCT Inst) in the EU is below 20% due to their voluntary nature and high costs. Banks often offer them as a premium service that is subject to a fee. The new EU regulation is intended to solve these problems and make SCT Inst the standard in the medium term.
6 June 2024
From 20 August 2024, instant payments will enable immediate and final transfers. Six leading Swiss banks, covering over 90% of payment transactions, are preparing for this. They are developing customer-oriented strategies and integrating instant payments into their systems.
Switzerland has developed SCION, a secure network architecture that is used by ETH Zurich, the SNB and SIX. SCION is also used internationally and is being reviewed by the IETF for standardization. It offers routing control and protection against cyber attacks.
The CBDC adoption is progressing worldwide. 134 countries are evaluating central bank digital currencies, including 19 G20 countries. Challenges remain in the US, where development has stalled. Despite the hurdles, CBDCs appear to be playing a sustainable role in the financial system.
Decentralized financial services (DeFi) enable financial transactions without intermediaries through smart contracts. Although turnover is still small and volatile, DeFi has great potential. Regulatory approaches vary worldwide, with Switzerland taking an open approach.
Pascale Bruderer, Swiss Stablecoin, emphasizes the importance of a regulated, sovereign digital franc. Her focus is on public blockchain, interoperability and sustainability. Trust, technical security and strong partnerships are crucial for acceptance.
8 March 2024
A study shows that the rules of financial intermediaries strongly influence the use of payment technologies. The increase in the maximum amount for contactless payments from CHF 40 to 80 during the COVID pandemic led to an increase in usage, especially among already active users.
According to Prof. Cornelia Stengel, the introduction of private token money in Switzerland presents legal challenges. Token money could reduce transaction costs and increase efficiency. It offers advantages for securities trading and requires a suitable infrastructure.
5 December 2023
Pay apps are a growing source of fraud. Behavioral biometrics is designed to help detect and prevent fraud. This technology analyzes user behavior for authentication. The market for behavior-based biometrics will grow to over $9 billion by 2032.
A smart banknote combines physical and digital money. It feels like a normal banknote, but can be transferred to a wallet by scanning a QR code. This hybrid form of money was developed by Orell Füssli and could offer an alternative to CBDCs.
Payment systems are merging physical, digital and biological elements, says Jocelyne Mwilu. Facial recognition and cashier-less stores could make hardware redundant. Blockchain and AI offer security. Collaboration and user-friendly solutions are crucial.
6 September 2023
Experts discuss the introduction of instant payments in Switzerland. These will be available 24/7 and enable immediate, irrevocable transactions. The advantages include increased security, transparency, better financial planning for all, and the potential for new services.
1 June 2023
Quantum computing could revolutionize complex payment processes, according to Dr. Danica Marsden of the Bank of Canada. A new algorithm reduces liquidity in the RTGS system, saving CAD 240,000 per day. However, it is not suitable for instant payments.
Insurance startup Calingo uses QR-bills and plans to offer credit card and TWINT payments. All processes are digitized to avoid media disruptions. "Convenience is more important than the brand," says CEO Anina Lutz, who prefers simple and convenient solutions.
15 March 2023
The EPC has published the SEPA Payment Account Access Scheme Rulebook to promote open finance in Europe. It contains API-based rules to facilitate data exchange between banks and third-party providers and defines premium payment services beyond PSD2.
The payment process is like an iceberg: at the top, the simple use of cards/apps; at the bottom, complex processes. According to a Worldline study, this gap is widening as a result of digitalization. Innovation is needed to create simple, secure and automated payment solutions.
PhonePe is the most popular mobile payment app in India, similar to TWINT in Switzerland. It uses the UPI infrastructure, which processed over 7.8 billion transactions in December 2022. India plans to expand UPI internationally to facilitate payments and money transfers.
Market infrastructures must move with the times. Cyber risks, cryptocurrencies, stablecoins and CBDCs are challenges that operators must constantly address. Change is part of the program. Interview with Dr. Ruth Wandhöfer, professor at the London Institute of Banking & Finance.
7 December 2022
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