Payment solution for Swiss associations: One platform for all sections

Swiss umbrella organizations can provide their sections with a central payment platform, which each section can use independently to collect membership fees, event tickets and course fees – with their own branding and their own payout to the section account. The association maintains an overview via an aggregated dashboard and can use split payments to automatically deduct an association share (e.g. licence fee or umbrella association contribution) per transaction before the rest flows to the section.

This guide explains how such a platform solution works, what architecture variants exist, and shows three concrete scenarios for Swiss associations.

1. The problem: Why decentralized payment solutions slow down associations

In many Swiss associations, each section has its own payment solution – or none at all. The gymnastics club in Zug uses PostFinance E-Finance and QR bills, the section in Bern works with club software, the section in Lausanne collects in cash. The umbrella organization has no overview of the payment flows, cannot provide aggregated figures for the delegates' meeting and has no way of collecting the association share automatically.

This scenario leads to three concrete problems. First: The association must manually request and track the contribution of each section – with 40-500 sections, this is a significant administrative effort. Second: The sections offer their members an inconsistent payment experience – some accept TWINT, others only bank transfers. Third: For further education courses, licenses or events offered centrally by the association, there is no standardized processing.

2. The solution: Central platform with decentralized accounts

An association platform is a central payment infrastructure through which all sections of an association process payments – without the association itself receiving the payments. Each section has its own sub-account (sub-merchant account) with its own branding, its own products and its own payment to the section IBAN.

The association acts as the platform operator and takes care of the onboarding of the sections. In the background, payment processing is handled by a Payment Service Provider (PSP) which, as a technical partner, covers the regulatory requirements (KYC check, Money Laundering Act) for each section. The association itself does not usually need its own financial market license because it does not act as a payment intermediary – the funds flow directly from the payer via the PSP to the section.

2.1 Split Payment: Automatically deduct association share

Split payment means that an incoming payment is automatically split into two or more parts. For associations, this is the crucial mechanism: For each transaction of a section, a predefined share (e.g. 5% or a fixed amount of CHF 2) is paid to the association, the rest goes to the section. In this way, the association does not have to request its fee separately – it is automatically deducted from each payment.

Example: A member of the Bern section pays their annual fee of CHF 120 using TWINT. The PSP automatically deducts CHF 6 (5%) as the association share and transfers CHF 114 minus transaction fees to the IBAN of the Bern section. The association share is collected and paid out periodically to the umbrella organization. No manual effort, no invoices, no chasing up.

2.2 Reporting: Two levels, one dashboard

A platform solution typically offers two levels of reporting. The association sees aggregated figures: total transaction volume of all sections, association shares, number of active sections, top sections by turnover. Each section only sees its own transactions: incoming payments, payouts, outstanding items. The sections have no access to the data of other sections.

3. Architecture variants: Which model fits your association?

Depending on the size of the association, technical know-how and budget, three architecture variants come into question.

Most Swiss associations fare best with Model B: A platform solution via a PSP that handles onboarding, the KYC check and payment processing. The association configures the platform, onboards the sections and defines the split payment rules. Providers with a platform solution in Switzerland include Payrexx, Stripe Connect and wallee.

4. Three scenarios: How Swiss associations use the platform solution

4.1 Cantonal sports association with 40 local clubs

A cantonal gymnastics association has 40 local clubs with a total of 6,000 members. Each local club collects its own annual membership fee (CHF 80–150 per member). The association charges a license share of CHF 5 per member. Previously, each local club had to transfer the license share to the association separately – 20% forgot, 10% paid late.

With the platform solution: The association sets up a sub-merchant account for each local club. If a member of TV Aarau pays their fee of CHF 120 via TWINT, CHF 5 goes automatically to the association, CHF 115 (minus transaction fee) to TV Aarau. The association sees in real time which local clubs have billed how many members.

4.2 Professional association with training offers

A professional association offers central training courses (CHF 350–800 per course) and has 12 regional sections that organize their own networking events (CHF 25–50 per event). Through the platform, the association sells the courses centrally, while each section processes its events via its own sub-merchant account. The association has an overview of all bookings – central and regional – in one Dashboard.

4.3 Music association with regional sections

A Swiss music association with 80 regional sections (brass bands, choirs, orchestras) wants to offer sections a uniform solution for selling tickets for concerts. Each section gets its own sales page with the club logo and color scheme. Tickets are sold via the section's mini-webshop, and income flows directly to the section account. The association receives a fixed amount of CHF 0.50 per ticket sold as a contribution to platform financing.

5. Regulatory aspects: Must the association have a licence?

If an association processes payments via a platform, the question arises as to whether it is considered a financial intermediary within the meaning of the Money Laundering Act (GwG) or a payment intermediary under the Banking Act (BankG). The short answer: Typically not, if the association uses a licensed PSP as a technical partner and the funds do not flow through the association account.

The crucial distinction: As long as the PSP forwards the payments directly from the payer to the section (with an automatic split for the association share), the association does not receive customer funds and does not carry out payment transactions. Regulatory responsibility (KYC, GwG compliance) lies with the PSP. The association acts merely as an intermediary connecting its sections to the PSP.

Important: If the association instead receives the payments itself, collects them in its own account and then forwards them to the sections, it may be considered a financial intermediary and will require an SRO affiliation (self-regulatory organization) or even a fintech license in accordance with Art. 1b BankG. This model is not recommended for associations. The platform solution via a licensed PSP avoids this problem.

Note: This section does not replace legal advice. The regulatory requirements depend on the specific business model. If you are unsure, consult a lawyer specializing in financial market law.

6. Costs: What an association platform costs

The costs for a platform solution depend on the model, the number of sections and the transaction volume. The following table provides guidelines for an association with 40 sections and an annual total volume of CHF 500’000.

Additional advantage for the association: By centrally negotiating transaction fees, the association can often get better conditions for its sections than each section would achieve on its own. With a total volume of CHF 500’000+, negotiations for individual conditions are possible with most PSPs.

7. Checklist: Set up an association platform for payments

• Determine needs: How many sections? Which payment occasions (fees, events, courses)?

• Choose architecture model: Decentralized (A), Platform (B) or White-Label (C)?

• Evaluate PSP with platform solution and obtain an offer (Payrexx, Stripe Connect, wallee or similar)

• Define split payment rules: Percentage share or fixed amount per transaction for the association

• Define onboarding process for sections: What data does the PSP need (statutes, IBAN, board)?

• Start pilot with 3–5 sections and test the process

• Clarify reporting requirements: Which figures does the association need, which does the section need?

• Prepare communication to the sections: Explain benefits, create instructions

• Clarify regulatory question: Do funds flow via the association or directly via the PSP?

• Plan rollout: Phased onboarding (e.g. 10 sections per month)

8. How you can build an association platform with Payrexx

With the Platform solution, Payrexx offers a model specifically designed for associations with multiple sections. The association receives a central Dashboard through which it onboards sections as sub-merchants – including the KYC check, which Payrexx handles as a licensed payment facilitator. Each section receives its own account with its own branding, its own products (contributions, events, shop) and its own payout to its IBAN account.

Split payments can be configured per section or per product: The association defines which share is automatically deducted. The reporting shows the association shorthand metrics and each section its individual transactions. The sections pay transaction fees – the association can acquire these as a buy rate and determine itself which fees it passes on to the sections. For an individual evaluation, contact the Payrexx platform team for a non-binding consultation.