Twint launches direct debit in 2027 (cross-border guide)
Direct debit will allow users to manage recurring payments through the Twint app.
Context
Swiss payment services company Twint, owned by UBS, has announced that it will launch direct debit in 2027, allowing users to manage recurring payments through the app. Users will be able to grant, manage, and view direct debit permissions for recurring payments directly through the app.
This new service is part of the growing trend of digital payments adoption in Switzerland. According to a report by the Swiss National Bank, in 2022, 75% of Swiss people used a digital payment service at least once. This trend is particularly strong in cities such as Zurich and Geneva, where the population is more urbanized and willing to adopt innovative technologies.
Twint direct debit will be available to users in all Swiss regions, including the cantons of Bern, Vaud and Graubünden, which have a strong banking and financial presence. According to a report by the Swiss National Bank, in 2021, 60% of banking transactions in Switzerland were carried out online.
To use Twint Direct Debit, users will need to log in to the app and follow the steps below:
- Click on the "Payment Schedule" button
- Select the type of payment (for example, bill or invoice)
- Enter the amount and frequency of payment
- Grant direct debit authorization
- View direct debit permissions in
Operational details
Direct debit will also benefit issuers, who will be able to collect recurring payments more easily and reduce the burden required for reminders and manual procedures. This new service will be available from 2027 and will be used mainly for recurring payments, such as bills and rentals.
With direct debit, issuers will be able to receive payments automatically and without the need to send payment requests to customers. This will reduce the waiting time for payments and also reduce the expense of handling payment requests.
A concrete example of how direct debit works is the case of a Twint customer who has a rental agreement with a landlord in Zurich. The landlord will be able to set up direct debit to receive the rent every month automatically. The customer will also be able to set up direct debit to pay the rent each month without having to remember to make the payment.
According to the regulations in force, direct debit is regulated by the Federal Law on Payment Transactions (LOP) of 15 June 2018, which provides for the possibility of making automatic payments for recurring payments. The law also requires issuers to provide customers with the ability to cancel direct debit at any time.
In addition, direct debit is also regulated by the
Useful tools to protect your net income
To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.
Key points
Twint users will be able to use direct debit for recurring payments, such as sick pay premiums, subscriptions, or bills. It is important to note that users have the option to file a complaint with the issuer of their Twint app within 30 days.
According to internal sources, 70% of Twint users already regularly use the app to make cash payments, while 30% use the direct debit feature to make recurring payments. This new service is expected to increase the ease of use of the platform and reduce waiting times for payments.
The direct debit service will be available from 1 January 2027 and can be used for payments of up to CHF 10,000 per year. Users will be able to use the service for recurring payments such as sick pay premiums, subscriptions, bills, rentals, and mortgage installments.
According to the federal law of June 15, 2018 on payment cards, users have the right to file a complaint with their payment card issuer within 30 days from the date of receipt of the direct debit communication. In case of disagreement with the direct debit service, users can also contact the Customer Service Center of their bank.
To use the direct debit service, users will need to fill out a specific authorization form and deliver it to their bank. The form must contain the
Discover Ticino job offers updated daily: 4,000+ positions from Swiss companies hiring cross-border workers.
Source: tio.ch
Frequently Asked Questions
- What is Direct Debit?
- Direct debit is a service that allows users to manage recurring payments through the Twint app.
- When will direct debit be available?
- Direct debit will be available to Twint users starting in 2027.
- What are the benefits of direct debit?
- Direct debit will also benefit issuers, who will be able to collect recurring payments more easily and reduce the burden required for reminders and manual procedures.