Even the Swiss Are Shifting to Cashless Payments

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Cashless forms of payments are making inroads even in the country famous for its 1,000-franc ($1,087) banknote.

In Switzerland, the proportion of payments made with cash has dropped “significantly” in recent years, according to a central bank study published on Wednesday.

The Swiss National Bank survey found that while paying with notes and coins was still the top choice, the proportion of transactions using cards or an app had increased.

Switzerland and neighboring Germany, two countries where some businesses don’t accept debit and credit cards, long seemed to be bucking a trend seen in places like Sweden, where the use of cash has been declining. But with the pandemic, concern about hygiene outweighed a desire for anonymity.

Switzerland stands out among industrialized countries for issuing a 1,000-franc note. In the euro area, the largest denomination bill with a face value 500 euros is no longer being issued.

The SNB survey found that 40% of respondents said they’d had at least one 1,000-franc note in their possession in the last year or two. The main reason cited was payment for goods and services.

©2021 Bloomberg L.P.