Twint launches direct debit for bills and sick pay (cross-border guide)

Context

In a nutshell

• Introducing Twint Direct Debit
• Replacement of LSV+ systems from 30 September 2028
• Over six million users engaged in Switzerland
• Possibility of complaint within 30 days

Key facts

• What: Direct debit for recurring payments
• When: From 2027, with complete replacement by 30 September 2028
• Where: Throughout Switzerland for participating retailers
• Who: Twint with the support of major Swiss banks
• Amount: Not yet specified for individual transactions

From 2027, twint will offer a new direct debit function dedicated to recurring invoices, marking an important evolution for digital payment systems in the Confederation. The offer, supported directly by the major Swiss banks, will gradually replace the traditional LSV+ direct debits starting from 30 September 2028. The announcement was made through an official statement released on Tuesday, highlighting how the platform is evolving from a simple tool for transferring money between individuals to a complete solution for the daily financial management of residents and users throughout Switzerland. The news affects a base of over six million active users who regularly use the application on their mobile devices.

Functionality and management in the application

The new feature will allow all users to authorize, manage and view directly

Operational details

The transition to the new direct debit system managed by Twint represents a significant transformation for the digital payments landscape in Switzerland, offering operational benefits to both individual consumers and issuing companies. For account holders and users of the application, the ability to view and revoke authorizations directly from their device introduces a new level of flexibility compared to old traditional banking standards. Swiss banks, supporting the initiative from the design stages, aim to standardize the recurring payment experience on one of the most popular digital platforms in the country, reducing the fragmentation of existing automatic debit services on the domestic market.

# Issuer benefits and consumer protections

On the side of invoice issuers, such as electricity suppliers, health insurance funds and service companies, the new solution will make it easier and more efficient to collect recurring payments. The advanced automation integrated into the application will significantly reduce the administrative burden required for the management of reminders and manual collection procedures. In terms of protection and security for the end user, the system provides specific protection: in the event of charges made, customers will have the right to file a complaint directly with the issuer of their application

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

To prepare for the arrival of the new direct debit feature planned for 2027 and the subsequent decommissioning of LSV+ systems set for 30 September 2028, users and consumers in Switzerland will need to monitor updates released by their application and reference banking institutions. No immediate action is required, but you'll want to check the compatibility of your service providers as soon as retailers start integrating the Twint solution into their billing systems. The gradual adoption will allow families and individual citizens to familiarize themselves with the management of recurring authorizations directly from the smartphone, gradually replacing the old paper or electronic banking mandates.

How to verify the management of your finances

With the evolution of payment systems and the increasing digitization of fixed expenses, it becomes essential to maintain an overview of your household budget and periodic expenditures, including expenses related to insurance and the cost of living. To thoroughly analyse your personal financial situation, compare fixed expenses and estimate the impact on your net income in Switzerland, scopri il calcolatore stipendio e imposte.

Source: rsi.ch