If the default for online payments in Switzerland is the nationally popular app TWINT and cards, the picture changes for cross-border purchases. For Swiss consumers hesitant to leave their card number on an unfamiliar overseas site, PayPal, with its buyer protection program, serves as a familiar safety net. Given the market's high income levels and strong purchasing power for overseas direct purchases, the presence of PayPal has an outsized effect on payment completion rates the more a business is perceived as a 'foreign seller,' as with Korean merchants.

This is a priority consideration for D2C brands with a high share of first-time customers, and for sellers of products with lower brand awareness in Switzerland, such as Korean-wave (hallyu) goods or hobby items. Conversely, for brands already established in the Swiss market, priority may be lower compared with TWINT and cards.

When a consumer selects PayPal, they log into their own PayPal account and approve the payment using their balance, a linked card, or a linked bank account. No card details are passed to the merchant, and account login combined with device authentication effectively functions as strong customer authentication (SCA). The paid CHF amount is collected by Hecto Financial, converted, and settled to the Korean merchant in the contracted currency of USD, KRW, or JPY.

PayPal acceptance can be considered on a domestic (Korean) entity basis within the scope of Hecto Financial's integration, and a local contract in Switzerland is not a prerequisite. Since conditions vary depending on industry restrictions and transaction volume, the settlement cycle, fees, and currency options must be finalized through consultation.

• Business registration country

  Confirm whether a contract is possible on the basis of a domestic (Korean) business registration

• Sales channels

  The integration approach and priority vary depending on the composition of online sales channels, such as owned storefronts, open marketplaces, and mobile apps

• Product categories handled

  Advance confirmation is needed as to whether the products fall under industries restricted by PayPal's operator merchant policy

• Regulatory and dispute policy check

  Switzerland is outside EU regulatory jurisdiction (under FINMA oversight), but PayPal's European service is operated by a Luxembourg CSSF-licensed entity. Dispute-handling standards under buyer protection also need to be confirmed (see official sources below)

The CHF amount that Swiss customers pay through PayPal is collected by Hecto Financial, and after conversion, the Korean merchant is settled in whichever of USD, KRW, or JPY was designated under contract. PayPal has its own separate dispute and refund procedures under buyer protection, so it is worth organizing the dispute response deadlines and evidence requirements together with your own refund policy.

• Swiss National Bank (SNB) / Swiss Financial Market Supervisory Authority (FINMA)Official information on the Swiss payment system and financial supervision. Where this page's content differs from actual regulations, the official source takes precedence.