The introduction of Instant Payment in the Swiss payment system is expected to be the biggest change since the introduction of QR codes on invoices. The Swiss National Bank (SNB) and SIX subsidiary Swiss Interbank Clearing (SIC) have laid the groundwork for the implementation of Instant Payment with SIC5. The new system has already been operational since November 17, offering individuals and businesses the ability to make electronic payments around the clock, including weekends and holidays.

Instant Payment ensures immediate availability of credits, better process automation, simplified liquidity management, and reduced settlement risks. This benefits both individuals and companies. Financial institutions are now required to join the system under the supervision of the SNB. However, it may take some time for the technology to reach customers, with the functions expected to be available from August 2024. The largest Swiss banks are obligated to be Instant Payment capable, while the remaining institutions are expected to follow suit by 2026.

SIC5 is being promoted as an important milestone by the SNB, although it has caused some concern among banks and other financial service providers. The standard represents a radical acceleration compared to the current state in Switzerland, where payments are typically settled overnight or within two days (T+2). Instant Payments require payments between two parties to be completed within 10 seconds.

Real-time transfers have been possible in the EU since 2017 through the SEPA Instant Credit Transfer system, which serves as the basis for Instant Payment in euros. However, bank customers usually have to pay an additional fee for this payment method.

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Information	Details
Geography	Europe
Countries	🇨🇭
Sentiment	very positive
Relevance Score	1
People	Thomas Moser
Companies	SIX, Swiss Interbank Clearing (SIC), Swiss National Bank (SNB)
Currencies	None
Securities	None