Macroeconomic costs of paying in cash in Switzerland - analysis by the HSG

Macroeconomic costs of paying in cash in Switzerland - analysis by the HSG

According to a report by www.blick.ch, an analysis by the University of St. Gallen (HSG) shows that cash payments in Switzerland cause the highest overall economic costs. The total costs for payments with cash and credit and debit cards amount to around 7.3 billion francs, which corresponds to 0.95 percent of Swiss gross domestic product.

The fact that cash payments have the highest costs is an important indicator of the impact on the market and the financial industry. At a time when the digitalization of payment transactions is making ever greater progress, this study shows that Switzerland continues to be confronted with high costs for cash payments.

The HSG puts the cost of cash payments at around 5.2 billion francs, followed by credit cards at 1.1 billion and debit cards at 1.0 billion. These figures make it clear that despite the increasing use of credit and debit cards, cash still has the highest overall economic costs.

These findings could impact the market and the financial industry by highlighting the need to promote and further optimize digital payments. Reducing cash transactions could generate savings that could have a positive impact on the overall economy. Furthermore, this could also spur the development of new technologies in the financial sector to establish more efficient and cost-effective payment methods.

The results of this study are an important indication for the further development of payment transactions in Switzerland and could help to increase the efficiency and competitiveness of the financial sector. It is expected that government agencies and financial institutions will use this data to develop future payment optimization strategies.