Swiss Fintech Cooperation Joint Mobile Payment Solution in Switzerland
Two of the leading mobile payment solutions in Switzerland will merge in fall 2016, with hopes of delivering greater value to their users.
We look at what one can expect in the near future.
The two leaders in mobile payment in Switzerland, Paymit and TWINT will be merging later this year, with the new solution to be marketed under the TWINT brand. This move is intended to create a platform-independent, competitive and customer-friendly solution for all mobile payment users.
The joint mobile payment solution is a result of combined efforts between the five largest Swiss banks Credit Suisse, PostFinance, Raiffeisen, UBS and ZKB, the financial infrastructure provider SIX, the retailers Coop and Migros and Swisscom. Further development and operations will be managed by a separate company, of which the five major banks and SIX will be shareholders. Juerg Weber, currently Division CEO of Payment Services in SIX, was elected president and Thierry Kneissler will remain as CEO in the new company.
This move is intended to create a platform-independent, competitive and customer-friendly solution for all mobile payment users.
Combined Strengths from Both Sides
The companies involved have agreed to combine the strengths of the two currently independent solutions, TWINT and Paymit. Following a comprehensive re-branding, the new system will appear in the market as TWINT.
The joint platform will be available to all customers and merchants, ranging from major retailers, espresso bars, issuers of payment cards and billing companies (acquirer) to any other Swiss or foreign market participants. It may be used at the cash register, in e-commerce, apps and machines or peer-to-peer across multiple channels.
Users in particular will benefit greatly from the joint payment solution. They will be able to use it to shop online, pay bills, purchase from brick and mortar businesses and even buy parking tickets and other sundries and groceries from vending machines.
Currently, users can transfer money to other users. Furthermore, users are free to choose from several mobile payment methods, including a linked bank account, credit or prepaid card or through a prepaid card.
Merchants will also be receiving their fair share of value-added services such as integration of customer cards, stamp cards or mobile couponing.
Merchants will also be receiving their fair share of value-added services such as integration of customer cards, stamp cards or mobile couponing. Thanks to the common standard, integration of various payment transactions systems will not be necessary, hence avoiding increased costs for merchants. On a technological level, the solution is open in order to integrate existing and future transmission technologies such as Bluetooth, QRCode and NFC.
In addition to the TWINT terminals (beacons), it is possible to integrate the existing payment terminals of all providers into the systems. This should allow for a quick and in-depth market penetration.
Until further notice, existing users and merchants can continue using Paymit and TWINT without having to undergo any changes. The joint mobile payment solution is subject to approval by the competition authority.