As an alternative to bank transfers, Bizum handles payments of money between individuals. The sending of funds arrives at the moment regardless of which financial entity linked to the app the transaction is made from.
Being the main strong not having to download another additional app to be able to use it, but within the app of the affiliated bank. Payments are safe, thanks to your PIN for validation of each operation. If you want to know what Bizum is and know its benefits compared to its competitors, keep reading.
How do money transfers made by Bizum work?
First of all, you must verify that your bank supports Bizum, to do this enter the direct app of your bank. Within the application you must point to a tab where ‘Bizum’ is set. Thus, you can send and receive money with other users who use the platform for free and instantly.
The system establishes transfer limits according to what each bank marks, but you can pay for your purchases online without any problem. The foregoing, through the telephone number that supports and validates the money transmission operation. To take advantage of the benefits of Bizum, you must be linked to a single bank account.
To transfer money is very simple, you can also send a payment request or read QR codes to credit. Once the money is dispatched, the receiving account will instantly receive the amount, as well as a confirmation SMS.
Comparison of Bizum against its competition
When thinking about the typical situations where make the shared expenses, as between friends on a movie outing, options are needed to pay the bill. Bizum is always the best ally, however, there are other competing alternatives. Let’s see which one is more convenient!
Bizum and Verse
Continuing with the previous example, inside the verse app groups can be created to share expenses with different people. All send the part of the payment that corresponds to them and then the disbursement is executed from the purse of the event.
Likewise, when including several users in the group, this divides the total of the global account to determine the pending costs and is in charge of tell each user what to cancel.
No fees or commissions are charged regardless of the bank. Although it is only available for Spanish financial entities, it can be pay and request money quickly and safely through the app, to which the card is linked.
On the official Bizum page, we see the financial entities with which the platform has an agreement. It does not need a third-party application to work, but its tab is included in each banking app. For this reason, the design of the interface may vary according to the online banking entity. In addition, any deposit of money reaches the current account, not to an external wallet.
Twrp vs. Bizum
The Twrp application is launched by the Dutch bank ING Direct, but it is covered for any person residing in Spain, whether or not they are a customer of the bank. It is a virtual wallet that is recharged to be able to make payments to other users within the app. Likewise, the money can be sent to a Spanish bank account without commissions.
The app can be linked to a Apple Pay or Google Pay account to send payments with discounts to businesses and gas stations. Everything is free and without commissions, in addition, you can withdraw cash in authorized stores when making a purchase of any amount. Of course, all users must have a Twyp account to use the service.
You can link the account between the list of Spanish banks available within Bizum, in addition to instantly withdraw money from your bank account. You do not need a third-party app or a virtual wallet. You can carry out up to 30 operations per month.
PayPal and Bizum
Among the pioneers of mobile payments between individuals is PayPal, such that you only need an email or a mobile number to send or receive money. It can be associated with a bank account, but when making transfers bank details are not needed or personal. Thus avoiding the exposure of private data.
Thanks to this protection, thousands of stores and web pages accept the payment method. However, when withdrawing money and sending it to your bank account or credit card, it can take time. In addition, the one who sends money must pay a commission of 5.4% + 0.30 USD for each transaction.
The above does not happen in Bizum, since, it is commission free and the money is withdrawn immediately. Although depending on each bank, the commission may be charged, however, these are low compared to PayPal. For this reason, Bizum has become so indispensable throughout Spain.
Zelle vs Bizum
For starters, Zelle handles an American currency (USD), due to its US-based digital payments network. Therefore, to send a transfer to people, you must be registered with a banking institution associated with the Zelle list. Your application is intended to pay within the bank network through an email or phone number.
One of the main disadvantages of Zelle compared to Bizum is that to send money the sender must have US bank account Therefore, only US dollars can be transferred between accounts. Which, if you are abroad you will not be able to make payments with another currency, a very big disadvantage within Europe.
Revolut or Bizum
Without a doubt, the function that makes this application a star is the possibility of being able to make payments abroad and obtain bank cards. As well as buy gold and cryptocurrencies it’s a reality within the Revolut app. You can make transactions to withdraw 200 Є monthly, however it is allowed to go up to 400 Є if you get the Premium account.