TWINT: Switzerland's Digital Payment Revolution

In our previous discussion about Bizum, Spain's popular mobile payment system, we explored how digital payment solutions are transforming financial transactions across Europe. Now, let's turn our attention to Switzerland, where TWINT has emerged as a similarly groundbreaking force in the rapidly evolving landscape of digital payments.

While Bizum has become a household name in Spain, TWINT has achieved comparable status in Switzerland, revolutionizing the way Swiss residents handle their day-to-day financial transactions. Both systems share the goal of simplifying peer-to-peer transfers and retail payments, but TWINT has expanded its reach even further, becoming an integral part of Swiss daily life and transforming the way people transact and manage their finances.

A Brief History

TWINT was launched in 2015 as a joint venture between several Swiss banks and SIX Group, the operator of Switzerland's financial infrastructure. The initial goal was to create a unified mobile payment solution for the Swiss market. In 2016, TWINT merged with its competitor Paymit, consolidating the market and accelerating adoption.

Since its inception, TWINT has grown rapidly, evolving from a simple peer-to-peer payment app to a comprehensive digital payment solution accepted by thousands of merchants across Switzerland.

How to Use TWINT

Using TWINT is straightforward:

1. Download the dedicated TWINT app of your bank from your device's app store.
2. Register and link your bank account or credit card.
3. To make a payment: In stores: Scan the QR code at the checkout or let the cashier scan your QR code.Online: Choose TWINT as the payment method and confirm the payment in your app.Person-to-person: Use the app to send money directly to another TWINT user's phone number.
4. In stores: Scan the QR code at the checkout or let the cashier scan your QR code.
5. Online: Choose TWINT as the payment method and confirm the payment in your app.
6. Person-to-person: Use the app to send money directly to another TWINT user's phone number.
7. For added convenience, you can also use TWINT for: Storing loyalty cardsPurchasing digital gift cardsPaying for parkingBuying public transport tickets

Unprecedented Growth and Adoption

The year 2023 marked a significant milestone for TWINT, with users executing a staggering 590 million transactions. This figure represents a substantial increase from previous years, highlighting the growing trust and reliance on digital payments in Switzerland. Notably, commercial payments accounted for 72% of these transactions, indicating TWINT's strong foothold in the retail sector. (https://www.twint.ch/en/press/twint-590-mio/)

Revolutionizing Brick-and-Mortar Retail

One of the most impressive aspects of TWINT's growth has been its penetration into physical retail stores. The number of in-store transactions nearly doubled in 2023 compared to the previous year. Supermarkets, in particular, have seen widespread adoption of TWINT at their cash registers, making it one of the most preferred payment methods for everyday purchases.

Benefits for Merchants

TWINT's appeal extends beyond consumers to merchants, especially smaller businesses. The platform offers favorable conditions for electronic payments, allowing merchants to accept digital transactions without the need for costly terminals. A simple QR code sticker enables customers to pay using their preferred method, reducing barriers to entry for small businesses looking to modernize their payment systems.

Beyond Payments: A Digital Companion

TWINT has evolved beyond a mere payment method to become a comprehensive digital companion for Swiss residents. Users leverage the app for various purposes, including:

1. Purchasing gift cards and digital vouchers
2. Making donations
3. Paying for parking fees
4. Buying public transport tickets

This versatility has cemented TWINT's position as an essential tool in simplifying day-to-day life in Switzerland.

Future Innovations

Looking ahead to 2024, TWINT plans to enhance its offerings further:

• Introduction of widgets for iOS smartphones, allowing for faster payments directly from the home or lock screen
• Integration of loyalty cards within the app, enabling automatic presentation during transactions
• Expanded partnerships with retailers like Coop and Migros for seamless loyalty point collection

These innovations aim to streamline the payment process for users while providing merchants with new communication and sales channels.

Swiss Neobanks with TWINT Integration

TWINT is widely supported by both traditional banks and neobanks in Switzerland. Here's an updated list of notable neobanks that offer direct TWINT integration:

1. Yuh (joint venture between Swissquote and PostFinance)
2. Swissquote
3. Radicant
4. UBS Key4

It's important to note that while these neobanks offer direct TWINT integration, many other financial institutions in Switzerland support TWINT through the "TWINT Prepaid" option. This allows users to top up a TWINT account and use it for payments without directly linking it to a bank account.

Some popular neobanks that support TWINT Prepaid include:

1. Neon
2. Zak (Bank Cler's digital offering)
3. Yapeal

The TWINT Prepaid option provides flexibility for users who prefer to keep their TWINT account separate from their main bank account or for those whose banks don't offer direct TWINT integration.

A Model for Europe

TWINT's success has positioned Switzerland as one of the most advanced countries in Europe for digital payments. The establishment of this innovative, modern, and local payment system offers users greater self-determination and independence through digital simplification – an achievement that many parts of Europe aspire to emulate.

As TWINT continues to grow and evolve, it stands as a testament to Switzerland's commitment to financial innovation and digital transformation in the payments landscape. Its wide acceptance across various banking platforms, from traditional institutions to cutting-edge neobanks, ensures that Swiss residents have easy access to this revolutionary payment system. Much like Bizum in Spain, TWINT has become an essential tool in Switzerland's journey towards a cashless society, showcasing how different European countries are developing their own unique solutions to meet the growing demand for fast, secure, and convenient digital payments.