The use of bizum and mobile applications is growing in payments between individuals and already represents 13% of operations according to the ECB survey
This year, only 66% of purchases in physical stores in Spain have been paid for with cash, compared to 83% in 2019, according to the study ‘Use of cash and other means of payment: how is it changing? the way we pay?’ , drawn up by the Bank of Spain following the investigation by the European Central Bank (ECB). The pandemic caused by Covid-19 has accelerated digitization and although cash is still the most widely used means of payment in Spain for purchases in physical stores and payments between individuals, its use has declined significantly. This decrease is caused in the first place by the increase in online purchases and secondly by a change in consumer payment behaviour. In concrete terms, the use of bizum and other mobile applications already represents 13% of payments between individuals (14% in amount).
In physical store purchases, cash is generally used for purchases of less than card payments (an average amount of €22.6 cash versus an average €38 with a card); consequently, the value of cash payments is 51% of the total.
The bank card is used in 28% of purchases, 13 percentage points more than in 2019, and its weight in the total amount amounts to 37%. As for payments with mobile applications in stores, it has evolved from a remnant to 3.7% three years ago.
Older people use more cash: The over-55s make almost 70% of their purchases in physical stores with cash, compared to 60% of the over-40s.
The Bank of Spain also points to the increase in online purchases in restaurants, hotels and supermarkets, which rose from 8.3% to 29.1%. In general, the weight of online purchases in the number of transactions will double in 2022 compared to 2019.
For recurring payments, the majority of Spaniards use direct debits: almost 80% of the amount of recurring payments is direct debit, reaching 90% of telephone and internet bills, but only 70% of subscription payments. The card is the most commonly used method only for payments related to transport.
In terms of payments between individuals, 71% is still made in cash, although its use is decreasing due to the increasing convenience of mobile applications.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
