Ingenico Group, looking to expand in the Pacific region, acquired Paymark, a leading New Zealand payment network.
Switzerland purchased €8.4 billion worth of products and services online in 2015. When compared to the previous year, the market grew by 13%. The average Swiss customer spends about €1,600 online per year. While the fashion industry is a highly popular online industry in Germany, the Swiss tend to purchase other products more, such as electronic devices and food. Up to 25% of online orders in Switzerland are made over mobile devices, so it is important that stores that wish to sell in Switzerland optimize their shop to function well over an app or mobile version.
Digitec-Galaxus earned a revenue of 704 million Swiss Francs (CHF) and is the biggest online shop in Switzerland. Amazon, Zalando, Exlibris, Nettshop.ch and Brack.ch are also on the top 10 list of online retailers.
The Swiss market is especially interesting for German, French and Italian online retailers, as the Swiss often purchase goods from online shops based in neighboring countries. In 2016, the transaction volume amounted to 1.2 billion euros and there was a growth of 18% from the previous year.
The most popular payment methods in Switzerland are purchasing on account, payment per credit card, PayPal and PostFinance. These four methods are absolutely necessary to offer in all online stores that wish to sell in Switzerland, as they are incredibly popular and useful for achieving an optimal conversion rate. Many payment methods are still used that are processed offline and not directly during checkout. In addition to purchasing on account, bills are often paid at the bank counter. Pre-paying and paying on delivery are also common methods of payment. In short, payments are most commonly done by billing. For services, paying by credit card is the most common method of payment, as services often require proof of payment before the service done.
Foreign online shops should pay attention to the conversion rate, as products sold in Switzerland are sold in Swiss Francs. The conversion rate can be optimized through cooperation with the right payment service providers. Certain Swiss shops charge extra fees for various methods of payment, such as purchasing on account, in order to increase profitability and encourage customers to purchase using other methods of payment that are more profitable for the retailer.
Card payment 48%
Bank transfer 9%
Direct debit 2%
6,7 Bil. CHF
Population: 8,1 Mil.
Internet Usage: 87%
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