Learn about the most commonly used payment methods.
We detail the new payment methods that are on the rise.
The new forms of payment that are emerging thanks to open banking and the development of fintech are increasingly used in Spain. The use of cash is becoming less and less in our fiji email list country, as it is under pressure from different fronts:
Tax regulations : Since July 11 of this year, the use of cash has been limited to payments of €1,000, reducing the previous limit of €2,500.
COVID -19 : The changed social and economic environment resulting from the pandemic is affecting retail payments, where the use of cash is reduced.
Digitalization of society : This involves greater use of new forms of digital payment.
Growth and development of new forms of payment : The increase in payment options limits the use of cash.
Changes in payment methods due to the pandemic
According to Funcas , during the pandemic, changes in payment methods have accelerated , which would have taken several years. In general, four changes have been observed during the pandemic:
The number of transactions has decreased during periods of confinement or restriction, in line with the drop in consumption and increase in savings that is common to other countries.
Cash payments have decreased in relative importance compared to electronic instruments, although they remain a priority and persistent form of payment for a large number of citizens.
Contactless transactions using mobile devices are becoming more common . This has been one of the modalities that has grown the most during the pandemic.
Proliferation of the use of instant payment or money transfer tools . In Spain, the case of Bizum stands out . Along with these, other forms of carrying out transactions are also being incorporated, such as those based on QR codes (quick response). The adoption of this last form of payment is still incipient.
Bank cards resist the pandemic and the rise of new forms of payment
Bank cards are resisting the pressure of new forms of payment , mainly at the expense of their use in transactions that were previously carried out in cash.
According to the Bank of Spain, last year 4.735 billion card purchase transactions were made at a point-of-sale terminal (POS), with a variation of 4.4% compared to 2019. This represents a certain slowdown since, since 2016, the annual percentage variations have been double-digit.
In terms of amounts, in 2020 Spaniards made card purchases at POS terminals worth 160,551 million euros, 0.49% less than in 2019. In other words, cards were used more, but less was spent with cards.
Regarding the use of cards, the following points should be highlighted:
The advances in cards are evident, both in terms of convenience and security.
It is becoming increasingly rare to require a signature associated with each purchase , although this is still required for the use of cards associated with certain establishments.
For certain amounts it is no longer necessary to enter the pin code .
Contactless reader cards are booming and will become more established in society during 2021.
Some card models allow you to defer purchases in the establishment itself , so that the buyer can set the conditions of their purchase, establishing the deadlines and the type of installment to be paid.