Migros and Coop would benefit from preferential rates at Twint
Twint is the most popular payment app in Switzerland.
Twint is going through a period of turbulence. While the app is a resounding success in Switzerland, where 5 million customers use it for cashless payments, it is increasingly unpopular with retailers. The Swiss Retail Federation (which includes Manor, Lidl, and Volg) filed a complaint this week with the Competition Commission (Comco) against the company for abusing its market position and excessive fees.
And the discontent is likely to grow. According to the Tages-Anzeiger on Saturday, not all retailers are in the same boat. Migros and Coop have not joined the protesters. And for good reason: the two giants reportedly have a special agreement with Twint. According to several sources, they have benefited from preferential pricing conditions for years, in recognition of their key role in the app's launch in 2017. The same goes for SBB, which also benefits from very low fares. This "special deal" is now making people jealous.
When contacted, neither Coop nor SBB were willing to comment on the matter. Migros, for its part, also does not disclose its prices. "This information is confidential and is subject to internal agreements," a spokesperson said. She added: "What we can say is that Migros always strives to optimize payment costs in order to continue offering good value for money to its customers."
For its part, Twint specifies that retailers with higher turnover can sometimes benefit from better conditions. However, it did not comment on those granted to the two orange giants.
Will small retailers have to fight the excessive costs imposed by Twint alone? Not necessarily. VEZ, the Association for Electronic Payments, is another umbrella organization bringing together stakeholders committed to lowering transaction fees. Migros, Coop, and SBB are members, as is the Swiss Retail Federation. VEZ welcomes the approach initiated with Comco. While it is not joining the complaint, it is not ruling out taking its own steps: "We have been observing Twint for quite some time now and will take action when the time is right," it told Tagi.
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