Spain Still Loves Cash, But Bizum Is Changing The Game

Even successful a state wherever almost everything tin beryllium done pinch a pat connected your phone, rate still has a patient grip connected Spain. But that grip is loosening – and fast.

According to nan latest Study connected Cash Usage Habits from nan Bank of Spain, much than half of each payments successful nan state are still made pinch cash. Specifically, 57 per cent of consumers scope for coins and notes erstwhile paying successful shops, while 27 per cent usage cards and 15 per cent usage their mobile phones.

On a day-to-day basis, not overmuch changes – 55 per cent usage rate daily, compared to 28 per cent who salary by paper and 16 per cent who trust connected mobile payments.

So yes, rate remains king, but there’s a caller challenger successful town: Bizum.

Cash is still holding connected – for now

Spain’s emotion matter pinch rate isn’t conscionable astir habit. It’s besides astir practicality – almost each shop still accepts it. In fact, 100 per cent of businesses return cash, compared to 94 per cent that judge paper payments and 88 per cent that now let mobile transactions.

But nan winds are changing. With nan maturation of contactless exertion and smartphone apps, less group are visiting ATMs. Around 80 per cent of Spaniards still retreat money regularly, but that number is slow falling arsenic much group pat and go.

What’s down this slow transition? For many, rate feels safe, tangible, and trustworthy. But nan convenience of paying pinch your telephone — particularly erstwhile it takes conscionable a 2nd – is difficult to resist.

Younger generations are ditching rate faster than ever

If there’s 1 point clear successful nan Bank of Spain’s findings, it’s this: property makes each nan difference.

Among young adults aged 18 to 24, mobile payments are now nan astir celebrated option, utilized by 39 per cent — much than those utilizing rate (32 per cent) aliases cards (28 per cent).

For group aged 25 to 34, it’s an moreover match: 36 per cent still usage cash, and 36 per cent person gone digital. This shows a generational displacement that’s only going to turn stronger successful nan adjacent fewer years.

But interestingly, not everyone’s fresh to springiness up their euros conscionable yet. Only 19 per cent of under-25s opportunity they expect to usage little rate successful nan early — and among over-64s, that drops to conscionable 4 per cent.

So while younger generations are driving change, rate still holds affectional worth for many. It’s familiar, it’s simple, and for some, it still feels for illustration nan safest measurement to pay.

Bizum: nan caller measurement to salary friends (and everyone else)

Then there’s Bizum, nan Spanish app that’s wholly changing really group nonstop and person money.

When it comes to paying friends aliases splitting a meal bill, rate still leads – utilized successful 57 per cent of person-to-person payments. But Bizum is catching up fast, now utilized by 37 per cent of Spaniards, a four-point jump from past year.

During that aforesaid period, nan usage of rate for these types of payments fell by six points – a clear motion that nan displacement to instant, mobile-based payments is accelerating.

Bizum’s emergence is easy to understand: it’s fast, free, and useful instantly done your regular banking app. No request for IBANs aliases waiting days for transfers. It’s go truthful communal that successful galore situations, group simply say, “Te hago un Bizum” – “I’ll Bizum you” – alternatively of “I’ll salary you back.”

Spain’s costs habits are evolving – but they’re doing it astatine their ain pace. For now, rate is still portion of regular life, particularly successful smaller towns and for older generations. But pinch Bizum and mobile payments connected nan rise, it’s only a matter of clip earlier nan country’s wallets spell wholly digital.