The financial technology or fintech sector is boiling. This combination offers great opportunities, and many companies are striving to develop innovative and useful products and services. Among all the innovations, they try to revolutionize the unthinkable: traditional banking.
What is Bizum?
This Spanish payment system allows you to
instantly transfer money from mobile to mobile. You don't need to know the
recipient's IBAN. This platform is supported by Spanish banks and the National
Union of Credit Cooperatives.
Bizum allows you to make payments to
individuals, even if you don't know their account number. To make a transfer,
you need to register with Bizum, install a banking application and select the
contact you want to send or request money to in the smartphone calendar.
The amount will be paid in a matter of
seconds. This service is ideal for splitting your restaurant bill and paying
instantly without taking any money with you. Not only is it used for this, but
you can also use it for donations to NGOs or payments to companies.
Today, 26 Spanish banks using the Bizum
platform account for 96% of the market. All of these customers can use it to
send money to individuals, receive money from companies, conveniently shop
digitally, or make donations.
In June 2019, more than 30 million
transactions have been carried out since its inception.
Remember that this is not a mobile app, but
functionality available in your bank's app.
How do I send and request money?To send or request money, a contact on your agenda must be
registered with Bizum. Then you decide if you want to send or receive money,
choose a contact, enter the amount you want, write a concept and deliver Bizum
to send.
• If you sent money, the transferred amount will be debited
from your checking account and the recipient will receive it in a few seconds.
• In case of a request for money, the system sends a
notification to the recipient, and he has seven days to reject or accept it. If
it is accepted, you will receive money, but if it is rejected, you will not.
Is there a maximum amount per trade?
Money transfers range from fifty cents to one thousand euros
for each transaction, although some banks limit the maximum amount to 500.
There is not only a limitation on sending money, but also
other factors:
• You can receive a maximum of 2,000 euros per day.
• In a month, you can not conduct more than 150
transactions, whether it is shipment or receipt.
• In a multiple submission, you cannot attach more than 30
people.
How much?
Most banks offer this package free of charge for the first
year, although each bank may apply different pricing and commission policies,
so it is advised to ask about this before using.
Can I transfer money between my accounts using Bizum?
At the moment, on this platform, no more than one bank
account can be linked to each mobile phone number. If you have a Bizum account
in one organization and intend to open another in another organization, the
platform will automatically cancel the first in favor of the second, so the
transfer will not be possible.
The best solution for sending money to yourself is by bank
transfer, even if the money arrives within one business day.
Can I send money via WhatsApp with Bizum?
Instant messaging applications and social networks are
essential and common in everyday life. TV shows don't want to be left behind
and as such they are committed to innovating and improving their services. BBVA
and ImaginBank are trying to facilitate this feature and have implemented it in
Telegram, Messenger, WhatsApp and Hangouts.
To integrate the functionality into WhatsApp, you must
activate the ImaginBoard virtual keyboard. After activation, you get access to
the chat, use the bank's keyboard, select a contact, add the amount and confirm
the operation.
How does the platform contribute to the payment
instrument sector?
One of the benefits of this feature is that because it is
linked to your bank account, you don't need to have a credit or debit card. The
main difference from other mobile payment options is that, once tied to an
account, money goes in and out directly. At the moment, it will be available to
you without a virtual wallet.
With the option to pay in digital stores, you only need to
provide your mobile number and accept the transaction so that the money is sent
securely from your bank account.
Work is underway to make it possible to pay for purchases in
physical establishments with this function in the near future.
Difference between transfer and Bizum service
While the two services may seem very similar to you, there
are important differences between them:
• A regular transfer takes one business day, whereas if you
use Bizum, you will receive your money in a few seconds. Banks offer you the
option to make an immediate transfer, but you have to pay for it.
• Bizum commission is zero Euro.
• To send money using this platform, you only need to know
the recipient's mobile phone, so it is a fast, simple and convenient operation.
Who is the owner of Bizum?
The main shareholders are CaixaBank, BBVA and Banco
Santander. They also own a part of shares in Sabadell and Bankia.
What is Revolut?
It is a mobile application that allows you to act like a
bank. He has over one and a half million clients, which is amazing because he
is barely two years old.
Spain ranks fifth in terms of the number of users, but if
you look at growth, it comes in third with 60,000 customers.
Can I get a bank from the app?
Only 60 seconds separate you from installing this
application on your mobile phone. Signing up is very easy and you can have
accounts in different currencies, which can be very interesting under certain
circumstances.
Among the services offered by Revolut, we have to highlight
the checking account, the purchase of cryptocurrency and the credit card. In
the United Kingdom, it offers consumer loans, an option not currently available
in Spain.
Among the advantages that your card offers is the ability to
withdraw money without commission anywhere in the world, but it has a monthly
limit of 200 euros. If this limit is exceeded, you will be charged a 2%
commission for the free service. For 7.99 € per month, you can order a premium
service and this limit will be 400 € per month. The bank account does not
belong to Revolut as it does not have a bank file, but it belongs to the
English bank Lloyds Bank. Revolut European banking license processing is in
progress. This entails a number of disadvantages, since although the accounts
are in euros, they are located in the UK, so their IBAN starts with GB:
• This can be inconvenient for direct debit receipts and
payroll receipts in some places.
• If you have more than € 50,000 outside Spain, you must
submit an informative report to the Treasury.
• Finally, and very importantly, Brexit is still unknown, so
it is also unknown in what situation it might leave you.
Advantages over a traditional bank
If you work with this application, you will quickly realize
that both the interface and the usability are very simple. You can control
everything from within the app and you won't need to use third-party apps.
One of the main advantages of Revolut is that you can
withdraw money without commission anywhere in the world, although the limit can
be slightly low: € 200 if you choose the free service, or € 400 if you choose
the premium service. ...
Another advantage is that you can exchange currencies
without commission and at a more than interesting market price. If you travel
frequently or intend to export a service or product along with your business,
you must take this into account. In each currency, you will have your own and
independent account, and you can have up to 26 accounts, which are the
currencies that this platform supports.
Do not forget that in the application you can buy
cryptocurrency, which has never happened in any of the usual banks. If you are
looking to invest in digital assets, this might be the best and safest way to
do it.
