Switzerland to enable offline card payments for essential goods

Switzerland will allow people to pay by card for certain essential goods during technical disruptions, SRF reports. The new system is due to be introduced by the end of 2027.

It is intended to provide an alternative to cash if communication between banks and payment terminals fails, allowing people to buy vital goods and keeping commerce running.

The system will activate automatically at the terminal when it cannot connect to the payment provider. Customers will need a physical Swiss-issued credit or debit card and their PIN. The PIN will be stored on the terminal and transmitted once the connection is restored, with the account charged only then.

Mobile payment services on phones and smartwatches will not work offline. Foreign-issued cards will also be excluded. The card reader must still have a power supply for the emergency system to operate.

Offline payments will be limited to essential goods, including food, medicines and fuel. The system will therefore mainly apply in food shops, pharmacies and at petrol stations. It will activate during communication disruptions, infrastructure failures or faults in authorisation systems.

To prevent abuse, the number and value of offline transactions will be capped. The authorities are keeping the exact limits confidential. They are calculated to cover an individual’s basic need for essential goods for about one week.

Because account balances cannot be checked immediately during an offline payment, the main financial risk will be borne by the participating banks and financial institutions. Technical safeguards will limit their potential losses.

The system is based on a voluntary declaration of intent and was jointly developed by the Federal Office for National Economic Supply, the Swiss National Bank, card-issuing financial institutions, payment infrastructure companies and the retail sector. Most food retailers and almost all card issuers have already joined.