According to the study Payments 2025 and beyond of PWC, in 2030 60% of purchases in electronic commerce and 20% in-person will be made through immediate account-to-account transfers. In this horizon there are two main scenarios, immediate transfers between companies and between companies and individuals, which provide immediacy to payment by traditional transfer; and other systems like Bizum, more agile and flexible, that little by little gain ground in eCommerce payments.
Created in 2016 and managed by 32 Spanish acquiring entities (98% of the local network), Bizum was initially used to make micro payments between individuals. Currently, it has more than 18 million active users, with more than 700 million transactions carried out and a 71% penetration in digital banking clients.
Somehow Bizum has evolved in its initial purpose and today it is another means of payment, although its use, until now, was not standardized or structured in a similar way to cards and other means of payment. Change comes from the hand of WORLDLINE, European leader in payment methods, which has incorporated Bizum into its solution, allowing it to be used in all types of online businesses. With this initiative, WORLDLINE is positioned as the first international Payment Service Provider (PSP) to offer Bizum.
One more payment option
WORLDLINE’s solution is based on a single integration for numerous payment methods, including cards and alternative payment methods, such as Bizum, for Spain, iDeal popular in the Netherlands or Carte Bancaires for French consumers. In all cases, it offers added value to merchants, since all transaction results will be controlled through the same interface, along with other payment methods used.
Paying for Bizum through WORLDLINE has been designed to simplify the procedure and make it more visual and intuitive, creating a frictionless user experience. Simply select the payment option with Bizum, enter the registered telephone number, include the password and pay. With regard to commerce, the integration of payment with Bizum through WORLDLINE is very simple, and those who are interested in using it and enjoying its benefits can quickly start processing payments in this way.
Benefits for businesses
In the case of eCommerce, in addition to improving the conversion rate in the purchase process, Bizum offers a purchase adjusted to PSD2, with strong SCA authentication, and secure commerce, without repudiation. Payment is guaranteed, with returns, disputes and fraud protection, equivalent to current banking solutions. Includes settlement options “online” in the main account or “remitted” in the intermediate account. In addition, the shopping experience evolves towards the user’s request that they accept in their banking app.
Range of payments
With Bizum it is possible to make payments ranging from 0.50 euros to a maximum of 1,000 euros per day. To avoid the cannibalization of card payments, acquiring entities allow users to carry out a maximum of 60 transactions per month and a maximum amount of 2,000 euros per day. Local acquirers charge merchants low fees for each Bizum transaction processed.
Continued growth
In 2020, payments with Bizum represented 27.9% of all digital transactions in Spain, with an average transaction value of € 48.5. In the first half of 2021, it exceeded the expected annual growth, doubling the number of integrated businesses. By the end of the year, its presence will have expanded to more than 20,000 businesses, with more than 7 million B2B / B2C online sales, with a 7% market share, which implies a growth of 350%. Bizum is becoming a leader as an alternative payment method that is increasingly accepted by users.