guest article by SecurionPay
Online payment systems in Switzerland are continuously evolving based on changes introduced by the global regulatory framework. Plus, COVID-19 exposed weaknesses in the banking industry, and the pandemic was a catalyst for change the way money is processed. How can Swiss businesses take advantage of working with payment providers based in Switzerland?
The changes that can be seen in the Swiss financial market are even more emphasized by the latest corona crisis. As Finews noticed, most banks have operated with oversized numbers of staff despite progress in digitization. The current situation forced banks to see the importance of digitization, and that’s where fintech companies come into play.
Customer Experience at the Forefront
The banking industry, especially the large players, is riddled with holes like Swiss cheese, and big banks have noticed a two-digit drop in their market share in recent years. According to Digital Pulse Check 3.0: Switzerland vs. Europe, 87% of Swiss banks have optimized their products for mobile use, but only a third of them offer fully optimized banking. There’s a lot of work to do to provide bank customers with products that meet their growing needs.
Payment companies need to follow industry trends, and they come with greater personalization and a demand for new technologies. Now, fintech companies are leading the race in terms of customer-oriented solutions, and the main reason why is that banks are lagging behind technologically. It’s not only the Swiss—fintech has boomed, so the entire European banking industry is under pressure.
First and foremost, Swiss banks and traditional financial service providers need to change their approach to the customer experience.
Fintech Is Leading the Way in Digital Trust
Interestingly, PwC’s Mobile Payment Report 2019 shows that fintech companies are the second most trusted institution in Switzerland, which places them right after banks.
Fintech companies that process payments put their main focus on customer-oriented solutions and seamless payment experiences. Therefore, payment processors are placing competitive pressure on the players that still use legacy technology and operate in their siloed structures.
Independent fintech companies have much more to offer to online businesses than traditional banks. Their forward-thinking teams and systems backed by the latest technology and innovations are ready to respond to market trends and shape financial services. Thus, Swiss companies that want to increase their chances of competitiveness in the market should consider partnering with some of these fast-growing companies.
Partnering with Local Players
Statista’s analysis shows that the payment market in Switzerland is undergoing a significant change. The most common payment methods besides cash (98% usage share) are online bank transfers and debit cards (both 93%) and online payments by credit card with 86%. Credit cards are widely used both internationally and domestically in Switzerland.
All the changes will have a big influence on the financial market and, as more transactions are carried out online, increase the need to work with companies that are experts in online payments. Why not choose a local payment processor?
“In recent months, we could have seen a growing interest in digital payments and a number of businesses that moved to the online space. As a payment processing company based in Switzerland, we know the local market inside out. Combining it with years of experience in the payment industry, a network of local partners, and global coverage, it’s easier for us to address the challenges and demanding needs of Swiss companies and their customers,” says Lucas Jankowiak, CEO of SecurionPay.
Security is an integral part of online payments, and it’s in the Swiss DNA. Thus, payment platforms with Swiss roots can better understand the needs and specifics of online businesses based in their area.
The payment market in Switzerland has changed tremendously in recent years, creating a number of options and a competitive landscape for online businesses. That’s why online Swiss players can take advantage of working with a well-established payment processor based in Switzerland.