Acceptance of digital payment methods in Switzerland

Milla Rodriguez, Allison ; Depetris Chauvin, Nicolas (Dir.)

Mémoire de bachelor : Haute école de gestion de Genève, 2018 ; TDIBM 41.

The advent of the technology brings new possibilities in term of payment solutions and as a consequence the use of cash is declining. There are even regulations that force people to pay by electronic methods depending on the amount/or the country. These regulations limit the amount of cash in a single transaction to combat illegal practices. Indeed, cashless payment methods offer transparency and... More

Add to personal list
    Summary
    The advent of the technology brings new possibilities in term of payment solutions and as a consequence the use of cash is declining. There are even regulations that force people to pay by electronic methods depending on the amount/or the country. These regulations limit the amount of cash in a single transaction to combat illegal practices. Indeed, cashless payment methods offer transparency and traceability which allows verification in case of fraudulent transactions. However, according to some articles, Swiss are very attached to cash and are far away from a cashless society. Switzerland being part of the Financial Action Task Force (FATF) is the only nation where you can pay in cash up to 100,000 Swiss francs and it has the highest banknote denomination, 1,000 Swiss francs, compared to any other European nations. Therefore, this work addresses the adoption of digital payment methods in Switzerland. The aim of this thesis is, using an online survey, to find out what factors affect the decision of Swiss residents to use digital payment systems. For further relevance, the linear regression model helped to analyze the survey data. This method allows to determine how the use of a payment method is affected by a number of factors. It has been noticed that there are specific reasons and demographic variables that affect the use of different payment methods. Convenience and security are the main advantages, whereas costs and poor internet connection are the main drawbacks regarding cashless payment methods. Regulations and restrictions lead to the opposite of the desired effect because they are perceived as limiting freedom. As a consequence, introducing restriction to encourage people to use cashless payment systems in not the best way to go about it. Therefore, the best approach to encourage people to adopt cashless payment methods is by improving the infrastructures and lowering the costs for its use for customers as well as for small business. It might not exclude the use of cash definitely, but it can decrease it considerably. Finally, this work is meant to be useful for businesses which want to be actors in the payments industry. The diversity of digital payment methods might increase even more with the advance of the technology.