American Express is acquiring UBS's 50% stake in Swisscard Zurich, making it the sole owner of the credit card provider. The acquisition is part of UBS's efforts to streamline its operations.
Swisscard and UBS have also agreed to transfer Credit Suisse-branded credit cards to UBS without affecting the existing card portfolio. Swisscard will continue to issue cards under the American Express, Mastercard, and Visa brands. The acquisition and transition are not expected to have an immediate impact on cardholders, merchants, or partners.
The credit card market in Switzerland is competitive, with various issuers including SIX, Bonuscard, Cembra Money Bank, Postfinance, Corner Card, and UBS itself. Credit cards rank second in sales among billing products, with debit cards dominating the market.
Swisscard has not disclosed specific figures regarding the number of credit cards in circulation or its transaction volume but has reported over 400,000 users of its app.
The acquisition and strategic decisions by UBS and American Express could reshape the dynamics of the credit card market in Switzerland. The interplay between traditional credit cards, mobile payment solutions, and cash transactions will be crucial as financial institutions adapt to changing consumer preferences and technological advancements.