Mobile payment in Switzerland: trends, security, and challenges
Mobile payment is becoming increasingly widespread in Switzerland, and this is having an impact.
In terms of the number of transactions, smartphone payments now exceed traditional payment methods such as cash and debit cards. What once began as a technological gimmick is now an integral part of everyday life. However, as smartphone usage grows, so do security requirements.
In recent years, mobile payment has developed from a technical novelty to an everyday means of payment in Switzerland. More and more consumers are opting to pay using smartphones, smartwatches, or other mobile devices. This article examines the current trends, security aspects, challenges, and future prospects of mobile payment.
Index
Current market developments and usage behavior
According to the Swiss Payment Monitor 2025 [1], mobile payment has overtaken debit cards (24.4%) and cash (24.2%) with a share of 30.7% of all transactions. This clearly shows that mobile payment has become the most popular payment method in Switzerland.
Consumers like to use their smartphones or smartwatches, especially for smaller amounts under 20 Swiss francs. Convenience, speed, and increasing acceptance at points of sale contribute to its popularity. Mobile payment with Twint, Apple Pay, and Google Pay has also become indispensable in online retail.
Twint plays a special role here: as a Swiss solution, Twint is firmly anchored in the local financial system and enables payments to be made directly from a bank account or via prepaid credit. More than 75% of Swiss people use the app regularly [2]. In contrast, Apple Pay and Google Pay are particularly popular in international trade and among consumers with credit cards.
Technological foundations of mobile payment
Mobile payment is based on various technical processes. NFC (Near Field Communication) technology plays a central role here. It enables payment information to be transmitted by bringing a mobile device close (10 to 20 centimeters) to a compatible terminal (the point of sale), thereby triggering a contactless payment. This method is used in particular for international solutions such as Apple Pay, Google Pay, and Samsung Pay.
In addition to NFC, QR codes (Quick Response) are also frequently used to transmit payment information. This technology is used in particular by Twint. In practice, this means that a QR code displayed at the checkout (at the point of sale) is scanned with a smartphone to authorize a payment.
Depending on the application scenario—for example, online purchases or transferring money to friends (peer-to-peer)—Bluetooth technologies or an internet connection may also be necessary. The diversity of these technologies enables flexible use of mobile payment, but at the same time places demands on infrastructure, network coverage, and data security.
Security and data protection
Although mobile payment is considered a secure payment method, certain risks exist, especially when handling sensitive payment data.
A fundamental security aspect of mobile banking is the protection of the mobile device: if a smartphone or smartwatch falls into the wrong hands and there is no adequate access protection – such as a code, password, fingerprint, or facial recognition – there is a risk that unauthorized payments could be made.
Furthermore, mobile payments are not immune to the usual dangers of cybercrime. Attacks in the form of phishing, malware, or social engineering can be aimed at gaining access to payment information.
The issue of data protection is also important. International providers such as Apple and Google store information about their customers’ payment behavior. A lack of transparency can lead to legal and ethical concerns.
To protect themselves from these risks, users should take certain security precautions. These include protecting access to mobile devices and mobile payment apps with a code, password, fingerprint, or facial recognition. Users should also ensure that their operating system and mobile payment apps are always up to date. It is also advisable to activate notifications for payment transactions.
Payment providers also contribute to security: most mobile payment apps now offer two-factor authentication (2FA) and use modern encryption technologies. Nevertheless, it is essential that users actively contribute to their own security.
Challenges in use
Despite its growing popularity, mobile payment also presents certain challenges. One problem is technical dependency: if the mobile device’s battery is empty or there is no stable internet connection, the payment transaction cannot be executed. This can be particularly inconvenient when on the go.
There are also certain hurdles on the consumer side. Older people and users who are not tech-savvy in particular sometimes find mobile payment systems complicated or unsafe. They often prefer traditional payment methods such as cash or debit cards. To bridge this gap, clear information, instructions, and training courses are needed.
The economic aspects should not be neglected: for retailers, the introduction of mobile payment systems means not only organizational effort but also financial investment – for example, in new terminals (point of sale), software solutions, or employee training.
Future prospects and innovations
The development of mobile payment is progressing rapidly. Certain trends are already apparent today that will have a lasting impact on digital payment.
One important trend is the integration of additional services into mobile payment apps. Users can not only pay, but also take advantage of loyalty programs, redeem discounts, or use digital customer cards. This expanded range of functions increases the appeal and usefulness of these applications and significantly strengthens customer loyalty.
Another aspect that should not be overlooked is international standardization and interoperability. In the future, mobile payment should not only work locally, for example with solutions such as Twint, but also seamlessly across borders. This is a decisive advantage, especially for international travelers and in global online commerce.
In addition, innovative payment methods are emerging that go beyond the classic smartphone and smartwatch. For example, a chip has been developed that can be attached directly to the fingernail [3]. In combination with an app or a credit card, it enables contactless payment simply by holding the finger up to a compatible terminal (point of sale). However, it is questionable whether this will catch on, as the chip must be applied by a professional at a nail salon – and replaced every two months. The so-called smart ring with an integrated chip probably has slightly better chances. It also allows payment by simply holding up your hand – discreetly, quickly, and without an additional device. Such developments show how strongly the sector is moving toward invisible technologies.
These advances open up new opportunities for companies – from increased customer satisfaction and efficiency gains to the development of innovative business models. At the same time, however, data protection and ethical aspects must be taken into account in order to ensure user trust in the long term.
Conclusion
Mobile payment has established itself as a successful payment method in Switzerland. Acceptance is growing steadily, technical innovations are expanding its range of applications, and security standards are constantly improving. However, there are also challenges that should not be ignored.
Sources
[2] www.twint.ch/press/die-schweiz-liebt-twint
Author: Dominik Schupp, Lecturer in Information Security, “eBanking – aber sicher!” team (www.ebas.ch), Lucerne University of Applied Sciences and Arts – Computer Science
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