Bizum does not need introductions. But it is worth remembering that, according to its official website, “it is the solution for payments via mobile , promoted by Spanish banks, instantaneous, fast, comfortable and universal. Currently, it allows making payments between individuals , donations to NGOs and paying at associated online businesses ”. Come on, you no longer have an excuse to owe anything to anyone. And what about bank transfers?
If you do not have loose or your friends and you do not want to pay each their own, someone pay everything and then you can return what is pending from your phone. And with the guarantee that Spanish banks are behind the project. So much so that each bank integrates Bizum into their mobile applications. That is, there is no Bizum app . Your bank app is used to “make a Bizum”.
One question some of us ask ourselves is, why has Bizum become so popular if it basically consists of making a bank transfer ? Taking into account that the bank transfer can be made directly from your bank's mobile application, like Bizum, this second option has become popular while the transfer has remained for those of us who comb gray hair.
What is a bank transfer?
As BBVA says, “ bank transfers are one of the most common operations carried out by users who have an account at any bank” . That is, to make a bank transfer you need to have a bank account . That and something else. With a transfer “it is possible to easily send money from one account to another designated one only knowing the IBAN code “.
That is, to make a bank transfer you need a bank account and know the IBAN code of the bank account that will receive the money. For the rest, you can make a transfer from an ATM, from your computer, through your bank client page or, the easiest way, from the mobile application of your bank .
What is Bizum?
We said that Bizum is a service to send and receive money through mobile . Through your bank's application, you can make a Bizum by sending money or asking for it. Your Bizum account is associated with your bank account . According to their official help, “It is enough to have a bank account (IBAN) in Spain”.
Up to here everything the same as a bank transfer. You need a bank account. And in both cases, you can carry out the operation from your mobile phone. Whoever receives the money must also have a bank account.
But the difference is in the last step. To tell Bizum who will receive the money, you only need a mobile phone number . You can get it directly from your contact book or put the number by hand. Here is one of the keys to Bizum's success when it comes to bank transfer. A phone number has 9 digits. An IBAN code, on the other hand, is more complex.
Example: ES21 0000 0000 00 0000000000. Country code (ES), control code (21), four digits for the bank code, four digits for the branch code, two digits for the control code, and finally, ten digits for the customer's account code. Difficult to remember, right?
But there are more differences that have made Bizum a fast and convenient alternative to bank transfer. Let's see the main ones.
Bizum versus bank transfer
The first advantage, the ease of choosing who we will send money to. The second advantage, you can send a Bizum to someone who does not have yet this registered service . You will receive an SMS message to activate your Bizum through your bank and receive that money.
Another great advantage of Bizum compared to bank transfer. In the words of its creators: “The shipment of the Bizum is immediate, so it will reach the recipient's account in less than 5 seconds!” In contrast, a bank transfer is not so instantaneous. BBVA sums it up very well: “transfers reach the destination account almost instantly and, however, on other occasions they can even take days until that the money is reflected ”.
In other words, Bizum sends money instantly between users, regardless of the bank. On the other hand, transfers are faster between the same entity and it takes longer if you send a transfer to an account of another bank . Between 24 and 48 hours. If you need the money urgently, it may be a problem.
Some banks offer you the possibility of speeding up the process. Of course, paying a commission . The amounts of this commission can range from € 3 to € 40, depending on whether you want an urgent or immediate transfer. What's more, the commission is a percentage of the amount you send, so the figure may go up.
Bizum's limits
But not everything is going to be inconvenient for bank transfers. Also Bizum has its limitations . Do not forget that the banks are behind this service, so they are not going to give it free rein without limits.
Let's see. The main limit of Bizum has to do with the amounts, the number of operations, recipients, etc. It may vary between banks, but the official limits by default are:
Minimum amount per transaction: € 0.50 Maximum amount per transaction: € 1,000 (there are banks that limit to € 500) Amount received per client per day: € 2,000 Transactions received per month: 60 operations Requests per client per month: 60 operations Otherwise, a bank transfer is made between account and account. A Bizum can be made to a maximum of 30 recipients . Here again Bizum comes out the winner.
Bank transfers, meanwhile, do not have these limitations. So much you have in your bank account, so much you can send. Of course, from € 10,000 you have to declare it to the Tax Agency. BBVA, for example, limits to € 15,000 per transfer and € 30,000 per day if there is any payment withheld. If not, “the available balance in the account”.
Another detail to take into account is that Bizum does not allow money to be sent to bank accounts abroad . It only works with Spanish banks. Of course, it admits foreign mobiles associated with a Spanish bank account. For its part, bank transfers can be made to any foreign account if you have the IBAN code. The inconvenient? All Spanish banks take a commission for an international transfer, either SHA or OUR. The minimum is € 15, depending on the bank, and increases according to the amount of the transfer. By the way, if the transfer is SHA, the commission is assumed by the issuer and receiver. If it is OUR, only the issuer.
With everything explained, you already know the main differences, advantages and disadvantages of Bizum and a bank transfer. Both available on your smartphone in your bank's app. It depends on you if you want or are interested using one or the other to send money online.
