The Spanish banking sector has taken a significant step toward creating an alternative to U.S.-based global payment networks. Bizum, a joint venture of around 40 banks, has launched Bizum Pay, a system that enables payments directly from bank accounts at stores.
The new system allows users to make payments by tapping their phones on store POS terminals via their Android banking app or the Bizum Pay digital wallet. Payments are transferred directly from the customer's account to the store's account without any intermediary. iPhone users are expected to join the system after Apple opens NFC access to third-party apps.
Visa and Mastercard sidelined
The most striking feature of Bizum Pay is that it does not require international card networks like U.S.-based Visa and Mastercard. The reliance on these networks, which control the majority of card payments in Spain and across Europe, is described as a 'strategic dependency.' The system aims to eliminate intermediaries through an instant account-to-account transfer model, reducing transaction costs and strengthening Europe's own payment infrastructure.
Spanish banking giant BBVA stated that Bizum has three main use cases: person-to-person payments, e-commerce payments, and in-store payments. It highlighted that customers can transact using only their phone number through the bank's own mobile app, without downloading an additional application.
"This is particularly significant in a market where card payments have traditionally relied on international card networks. By offering a bank-based payment solution that works through customers' existing banking relationships, Bizum has shown that digital payment solutions in Europe can reach significant scale, provide convenience, and earn consumer trust," BBVA said.
Part of Europe's push for payment independence
This move by Spain is seen as part of Europe's broader push for 'payment system independence.' Visa, the global leader in card payments, processed 257.5 billion transactions worldwide last year, reaching a volume of $14.2 trillion. Mastercard reached a volume of $9.8 trillion with 160 billion transactions in 2024.
With a similar aim, the Wero system developed by banks in France, Germany, Belgium and the Netherlands is also underway. These developments are advancing alongside the digital euro project conducted by the European Central Bank (ECB). ECB President Christine Lagarde had previously warned that 'Europe urgently needs to build its own digital payment system.'
Bizum, which has more than 30 million users in Spain, is expected to see its in-store payment feature become fully widespread across the country within a few months. BBVA emphasized that Bizum is expected to expand beyond Spain in the coming period, enabling users to make instant payments in other European participating countries using their own country's banking app.
