Bizum has become one of the most popular payment methods in Spain, thanks to its simplicity. If you still don’t know how it works, we will explain it in a clear and practical way, as well as some cases in which it can be very useful. 

What is Bizum and when did it emerge?

Bizum was launched in 2016 as a joint initiative of several Spanish banks to offer an immediate, secure and simple payment method. Since its launch, it has evolved into an indispensable tool for thousands of users. Initially, it focused on making transfers between individuals easier, but over time it has added other features, such as payments in shops and donations to NGOs.

How Bizum works: step by step

• Initial configuration: To use Bizum you need a bank account and to have your bank’s app downloaded on your mobile phone. From the app, you can activate Bizum by linking your phone number to your account.
• Transfers between individuals: When you want to send money, just select the contact on your mobile or enter their number. Then, you enter the amount, confirm the transfer and the money arrives in a matter of seconds.
• Payments in shops: More and more shops, both physical and online, accept Bizum payments. To shop in an online shop, for example, you need a code that is generated when you activate this option in your banking app.

Common use cases

• Cost sharing: Perfect for splitting common expenses such as dinners, group gifts or activities with friends.
• Quick payments: you can pay back a friend or relative who has lent you money in a prompt way.
• Donations: Many charities allow contributions to be received quickly and securely through Bizum.
• Online shopping: You can use it as an alternative payment method on some e-commerce sites without having to enter your bank details.

Features

• Mobile phone: Both you and the other person must have a mobile number associated with Bizum.
• Money limit: There are limits on the amount you can send or receive, which vary from bank to bank. You should check with your bank to find out the limit that applies to you.
• Speed: Deliveries are immediate, although there may be cases of slight delays if they are made outside normal business hours.
• Compatibility: More and more merchants are accepting payments through Bizum, making it an alternative to using cash and cards.

Advantages of using Bizum

• Promptness: Payments arrive instantly, making it ideal for emergencies or quick situations.
• Simplicity: All you need is a mobile phone and access to your bank’s app, with no need for IBAN or additional details.
• Security: Transactions are protected by your bank’s security measures.