Payment delays cost Swiss online shops 77 working days per year: how to protect yourself
"Buy on invoice" remains one of the most popular payment methods in Switzerland – and a real revenue driver for online shops. But anyone offering this customer-friendly option faces a new challenge: professional management of payment terms and default risks.
Executives spend over 10 hours per week chasing late payments. That's 77 working days per year – time that's missing for product development, marketing, or customer service. These alarming figures come from the current European Payment Report 2025 by Intrum, which studied the payment habits of nearly 10,000 executives across Europe.
As an online shop, you're well set with common payment methods: TWINT, credit cards, PayPal and other instant payment solutions put money directly into your account – no default risk, no dunning process, no stress.
"Buy on invoice" however is a real conversion booster: This payment method remains very popular in Switzerland – especially for higher amounts and in fashion, where customers appreciate the trust of paying only after receiving the goods. Studies show: shops offering invoice purchases often have significantly higher conversion rates and bigger shopping carts. The catch? With this customer-friendly payment method comes a new challenge: managing payment terms and the risk of defaults.
The hidden costs of payment delays
The Swiss reality is sobering: On average, 11% of total revenue is paid late. Particularly affected are:
- Real estate sector: 16.3% late payments
- Financial services: 15.5%
- Construction: 13.3%
- Energy and utilities: 12.9%
The payment gap – the difference between agreed and actual payment duration – amounts to:
- B2C business (end customers): 11 days
- B2B business (companies): 17 days
- Public sector clients: 16 days
Why payment delays are increasing
The report shows three main causes of the growing problem:
1. Extended payment terms under pressure
57% of surveyed companies admit to accepting longer payment terms than they would have liked in the past twelve months – an increase of 49% from the previous year. Competitive pressure forces shop operators to grant more customer-friendly payment conditions.
2. Lack of negotiating power in B2B sector
28% of companies no longer negotiate payment conditions at all when business customers demand longer terms. Small and medium enterprises (SMEs) are particularly disadvantaged against large clients who exploit their market power.
3. Increased liquidity constraints
Economic uncertainty leads both companies and individuals to delay their payments to preserve their own cash flow. While companies often pay later strategically, consumers postpone invoices due to financial constraints or simple forgetfulness.
Concrete protection measures for your online shop
The two ways out of the payment delay trap
Basically, you have two options to protect yourself from payment delays: either you manage the risk yourself or you hand it over to professionals. Both approaches have their justification – the right strategy for your business is what matters.
Option 1: Full-service solution - completely outsource the risk
The smart solution for relaxed invoice purchasing With PEND's PowerPay integration, you get all the benefits of invoice purchasing – without any risk. The system handles:
- Automatic credit check before every transaction
- Immediate payout of the invoice amount (minus fee)
- Complete dunning process by MF Group professionals
- Legal enforcement for stubborn cases
- Protection against total losses – you receive your money guaranteed
Suitable for: Shops with CHF 100,000+ annual revenue who want to offer invoice purchasing without worrying about defaults. Especially interesting for fashion, lifestyle and higher shopping carts, where customers like to pay after receipt.
The costs: CHF 240 annual fee + 0.3% platform fee + 0.9-1.5% factoring fee. In return, zero payment default risk.
Option 2: DIY with professional credit check
For Shopify shops: individual risk control If you want to keep payment management in your own hands, professional credit checking is essential. The Intrum Credit Check tool for Shopify offers:
- Precise risk assessment based on Intrum database
- Flexible rules depending on order value and payment method
- Automatic decisions – risky orders are blocked or forwarded for manual review
- Shopify Flow integration for complex automations
- Only $0.85 per credit check – very fair conditions
Suitable for: Shopify merchants who want to decide themselves who to offer invoice purchasing to, but still want professional risk assessment.
Additional prevention measures
Communicate clear payment conditions
- Payment terms clearly visible at checkout
- Automatic reminders before due date
- Transparent information about late payment interest
The optimal payment methods strategy
Offer immediate payment methods:
- TWINT (dominant in Switzerland with 67.8% share of mobile payments)
- Credit cards with immediate debit
- PayPal and other wallet solutions
- PostFinance for traditional Swiss customers
Use invoice purchasing as revenue booster: The Swiss Payment Monitor shows clearly: "buy on invoice" remains one of the favorite payment methods of the Swiss and is practically always a good idea for online shops. Especially for larger amounts and in fashion, but demand is also high in other sectors where customers appreciate the trust and flexibility of this payment method. With the right professional security (see above), you can perfectly serve this demand and increase your revenue.
The 3-step strategy for payment delays
If you want to offer invoice purchasing yourself and there are sometimes payment delays, this proven strategy is recommended:
Step 1: Friendly reminder (day 1-7 after due date)
- Automated email with payment link
- Personal tone, understanding for possible oversight
- Easy option to offer installment payment
Step 2: Firm reminder (day 8-21)
- Official reminder letter
- Reference to late payment interest
- Setting deadline for payment
Step 3: Professional help (from day 22)
According to the report, 34.6% of Swiss companies plan to use external collection partners more. The advantages:
- Professional handling
- Preservation of customer relationship
- Time savings for your team
Conclusion: proactive rather than reactive
The times when payment delays were accepted as "normal business risk" are over. With 77 lost working days per year, no company can afford this luxury.
The key takeaways:
- Full-service solutions completely eliminate payment defaults (PowerPay)
- Professional credit checking is essential for DIY approaches (Credit Check for Shopify)
- Promote immediate payment through attractive TWINT/credit card integration
- Clear communication prevents misunderstandings about payment terms
Your next steps
For Shopify shops from CHF 100,000 annual revenue: PowerPay integration via PEND is the safest way to more revenue without default risk. Integrate directly here.
For smaller Shopify shops or DIY approaches: The Intrum Credit Check tool gives you professional risk assessment for just $0.85 per check.
For all other shops: Contact us – at PEND, we find the right payment solution for every shop size and every use case.
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With PEND, integrating and managing your payment methods becomes what it should have always been: routine. Sign up for free and see for yourself.
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