Bizum: Spain's Popular Mobile Payment App and Its Global Counterparts

What is Bizum?

Bizum is a mobile payment app that has taken Spain by storm since its launch in 2016. Developed collaboratively by most Spanish banks, Bizum allows users to send and receive money instantly using only a mobile phone number. The app has become an integral part of daily financial transactions for millions of Spaniards.

How Bizum Works

1. Setup: Users link their bank account to the Bizum service through their bank's mobile app.
2. Sending Money: To send money, users simply select a contact from their phone book (who must also be a Bizum user) and enter the amount.
3. Receiving Money: When receiving money, the funds are directly deposited into the linked bank account.
4. Speed: Transactions are typically completed within seconds.
5. Limits: There are daily and monthly limits on transactions to ensure security.

Bizum's Impact in Spain

Bizum has revolutionized peer-to-peer payments in Spain. It's commonly used for:

• Splitting restaurant bills
• Paying rent
• Sharing costs for group gifts
• Small business transactions

As of 2023, Bizum had over 20 million users, which is nearly half of Spain's population.

Similar Apps in Other Countries

While Bizum is specific to Spain, many countries have their own popular mobile payment apps. Let's look at a few examples:

Twint (Switzerland)

Twint is Switzerland's answer to Bizum. Like its Spanish counterpart, Twint allows for instant money transfers between users. However, there are some key differences:

1. Broader Functionality: Twint can be used for in-store payments, online shopping, and even parking fees.
2. QR Code Payments: Users can make payments by scanning QR codes, a feature not available in Bizum.
3. Independence: While Bizum is a collaborative effort by banks, Twint is an independent company, though it partners with banks and retailers.

Other Examples

1. Venmo (USA): Popular for its social features, allowing users to add notes and emojis to transactions.
2. M-Pesa (Kenya and other African countries): A mobile phone-based money transfer and microfinancing service.
3. Swish (Sweden): Similar to Bizum, it's a collaboration between major Swedish banks.
4. PayNow (Singapore): Allows transfers using mobile numbers, national ID numbers, or QR codes.

Comparison with Bizum

While these apps share the core functionality of easy mobile payments, they differ in various aspects:

1. Market Penetration: Bizum's adoption rate in Spain is exceptionally high compared to some other countries.
2. Features: Some apps offer more features (like in-store payments or international transfers) than Bizum.
3. Bank Integration: Bizum's deep integration with the Spanish banking system is unique, while some other apps operate more independently.
4. Social Aspects: Apps like Venmo include social features that Bizum doesn't have.

Bizum and Neobanks

While Bizum was initially created by traditional Spanish banks, it has since expanded to include several neobanks. This expansion has made the service even more accessible to a wider range of users. Here's a list of some neobanks that offer Bizum integration:

1. Banco100 (B100): This digital bank, owned by Santander, offers Bizum services to its customers.
2. imagin: Originally imaginBank, this is CaixaBank's digital banking platform that includes Bizum functionality.
3. EVO Banco: A digital bank that provides Bizum services alongside its other innovative banking features.
4. Openbank: Santander's digital banking subsidiary, which also offers Bizum to its customers.
5. N26: They have become the first neobank to incorporate the most requested and used payments solution in the Spanish market.
   
6. Revolut: A month ago, Revolut has integrated Bizum.
   

It's worth noting that while these neobanks operate primarily through digital channels, they are still connected to the Spanish banking system, which allows them to offer Bizum services.

Conclusion

Bizum's integration with both traditional banks and neobanks demonstrates its adaptability and importance in the Spanish financial ecosystem. While some international neobanks haven't yet integrated with Bizum, the service continues to grow and evolve, maintaining its position as Spain's go-to solution for instant mobile payments. As the banking landscape continues to change, it will be interesting to see how services like Bizum adapt to new players and technologies in the financial sector.