The allegations with which Digitec/Galaxus went public are untrue and misleading. The fact of the matter is that TWINT has one of the lowest transaction fees of all of the means of payment and is cheaper than many means of payment that Digitec/Galaxus also offers. What’s more, TWINT does not charge any 'hidden costs'. The other claims made by Digitec/Galaxus are purely 'window dressing'.
It is true that the current conditions are extremely competitive and standard within the industry. All of the other 7000 merchants in Switzerland pay fair transactions fees, which are also lower than those of credit cards and other payment providers. 'We feel that it is unfair that Digitec/Galaxus has evidently accepted the fees charged for all other means of payment, but does not want to come to an agreement with the largest Swiss means of payment TWINT,' said TWINT CEO Markus Kilb in the hope that the large number of satisfied TWINT customers will soon be able to use TWINT – the only means of payment that does not require a credit card to be used and with which no personal payment data has to be disclosed – to make purchases at Digitec/Galaxus once again.
TWINT uses the transaction fees, which are customary for all means of payment, to finance the costs it incurs for the secure provision of Switzerland's most popular mobile payment system, which already has more than 2 million users and has been forecast to have some 100 million transactions by the end of 2020. Currently, more than 7000 e-commerce merchants and online shops offer TWINT as a means of payment to their customers. TWINT also has an extremely fair price model in comparison with other payment providers, which is negotiated with each merchant by independent acquirers on the basis of turnover and is one of the cheapest when compared to that of other providers. TWINT had already offered the company a new contract several months ago. Digitec/Galaxus was, however, not prepared to accept the price models in place for all merchants.
'We are still open to discussions with Digitec/Galaxus about fair payment for our services. It would be a pity if the many Digitec/Galaxus customers that have happily paid with TWINT can no longer do so,' said Markus Kilb, CEO of TWINT. Nevertheless, he does not want to offer this service if the company is not receiving fair payment in return: 'It would be unfair to all of the other merchants, if we were to grant an individual market participant completely different conditions.'
He continued by saying that the TWINT price model is completely comparable with the models employed by other payment providers and the transaction fees are even often significantly lower than those of other providers.
'TWINT offered special tariffs and introductory contracts in the introduction phase, as is commonplace in the industry. This time is now over. TWINT has become a popular, easy-to-use and totally mobile means of payment, which provides users and merchant with a great many advantages. Therefore, the industry-standard price models that TWINT uses without exception now apply,' explained Markus Kilb.
TWINT needs the income generated in this way to continuously expand the system and adapt it to the constantly and massively increasing user and transaction numbers.
A large number of Digitec/Galaxus customers use TWINT as a secure and convenient means of payment in e-commerce, as they can pay directly from their bank account and do not need to use a credit card. In addition, TWINT allows for a shopping experience in which the user does not have to provide their personal financial information.
With over 2 million users and the 100 million transactions targeted this year, TWINT has become the leading mobile payment system in Switzerland in just over two years.
In addition to making in-store payments, TWINT is the fastest payment solution for e-commerce and can be used for transferring money to other TWINT users (peer to peer). TWINT is today accepted in practically all major retail stores, including Coop, Migros, Spar and Volg. TWINT is also the leading payment solution in the mobility sector and allows for payments to be made with the SBB, BLS, many private railway networks, Fairtiq, TCS and the largest provider of electric charging stations. What’s more, TWINT can already be used to pay for the use of more than 150,000 parking spaces in Switzerland, thus negating the need to have cash.