Instant payments and artificial intelligence have significantly expanded the possibilities for cashless payments. Yet, as highlighted in a study by the Boston Consulting Group, cash remains widely used in Switzerland.

Globally, the trend is moving in the opposite direction. In 2023, financial institutions worldwide generated 1.8 trillion Dollar in revenue from payment transactions, fees, and interest on checking accounts or issued credit cards – up from 1.6 trillion Dollar the previous year. Over the past five years, payment revenues have grown by an average of 9 percent per year.

Here are the key findings of the study:

• Switzerland in the bottom third: In Europe, the most frequent users of electronic payments are in Norway (815 transactions per person per year), Luxembourg (753), Ireland (705), Denmark (675), and the Netherlands (621). Switzerland ranks in the bottom third with an average of 405 transactions per year per capita, compared to 16 other European countries. Behind Switzerland are only six countries with fewer transactions: Portugal (362), Germany (304), Austria (300), Spain (288), Malta (243), and Italy (194), which sits at the very bottom. However, digital payments in Switzerland are increasing, with a 9 percent growth compared to the previous year.
• Slowed revenue growth: Global growth in the payments sector is expected to halve by 2028. Revenue growth will decline from  9to 5 percent, meaning that revenues will increase from 1.8 trillion to 2.3 trillion Dollar. North America and Europe will be most affected due to lower interest rates and a slower shift from cash to digital payments. Latin America, the Middle East, and Africa continue to exhibit the highest growth rates.
• Growth outside the core business: Banks are losing ground to fintechs and must generate around half of their new growth through offerings outside of traditional banking in order to remain competitive.
• Cost savings through artificial intelligence: Early adopters of generative AI (GenAI) have achieved cost savings of up to 70 percent in areas such as customer service and fraud detection.
• Central banks developing digital currencies: Over 90% of central banks are working on central bank digital currencies (CBDCs). However, widespread adoption will require robust infrastructure, clear use cases, and appropriate regulation.