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Spain's real-time payments market is expected to register a CAGR of 16.8% during the period 2022-2027. The primary factors driving the market's growth are the increasing smartphone penetration, growing participation from banks and financial institutions, and government initiatives, among others.
- The payment system in Spain is still heavily dominated by debit and credit cards, which account for most of the transactions in the country. However, the scenario is continuously changing after the pandemic, and mobile wallets, digital payments, and alternative payments such as real-time payments are gaining ground in the Spain payments market.
- Spain's real-time payment market is growing rapidly, owing to the wildly successful Bizum app. Launched in 2016 and built on SCT Inst, Bizum is a payment service launched by Spanish banks in 2016 to allow users to conduct Person-to-Person (P2P) payments through a smartphone. The Bizum mobile wallet has attracted millions of customers and has regularly added features beyond its original P2P functions.
- A few factors that boosted the rapid adoption of real-time payments, such as the modern Bizum user interface replicating social networks. Another is a steady stream of use cases that take real-time payments deeper into consumers' lives. These include support for donations to NGOs, eCommerce payments launched in 2019 and refunds, and even real-time settlement of national lottery prizes. Its ease of use is also boosted by widely available QR-code initiation adopted at more than 11,000 retail stores.
- Moreover, banks and e-commerce platforms have started offering real-time payment services such as Buy Now Pay Later options like Klarna and Afterpay to capture the rapidly growing segment and appeal to new users. With no interest charged for on-time payments by many BNPL platforms, people without credit cards can make purchases from a business and pay in installments. BNPL lets companies maintain better checkout rates and customer retention. This is further boosting the region's real-time payments market growth.
- The COVID-19 pandemic has boosted the use of new fast and secure payment technologies, such as real-time payments. However, the volume of transactions has fallen during periods of lockdown or tighter restrictions, but the use of instant money payment or transfer apps has also increased. In Spain, the use of Bizum stands out during the COVID-19 outbreak.
Scope of the Report
Real time payments or instant payments refer to payment rails (platforms or networks via which payments are made) that share a few characteristics, such as they are real-time and initiate, clear, and settle in a matter of seconds. Real-time payment payments are ideally available 24x7x365, meaning they are always online and available for transfer.
The Spain Real Time Payments Market is segmented by Payment Type (P2P, P2B).
|By Type of Payment|
Key Market Trends
P2P Segment is Expected to Dominant the Spain Real Time Payments Market
- Bizum and PayPal are two popular P2P apps customers have used for fast and immediate payments in the region. These offer real-time P2P payments that allow users to transfer money between people so quickly and easily that they are replacing more traditional means of payment and changing the game's rules in terms of national and international transactions. This new way of making bank transfers immediately makes these real-time payments much faster, more efficient, and cheaper for users.
- Moreover, the declining popularity of cash and cards for P2P transactions is further increasing the real-time P2P transactions in the region. Additionally, the surge in P2P payments in Spain is governed by various social interactions and transactions involving money, from dividing up the bill at a restaurant to donating. Also, immediacy and payment notifications in seconds are the key factors that grow customer confidence in the P2P payment service. Bizum is an SCT Ins. Transfer with a more friendly user experience because the phone number is a proxy for the customer's account.
- Furthermore, the growth in P2P is primarily supported by the launch of the Bizum payment service in 2016. Bizum enables customers to make payments from bank account to bank account securely, conveniently, and quickly just by knowing the recipient's mobile phone number. The method is becoming increasingly popular in Spain among youth.
- For instance, as per data reported by the Bank of Spain, the P2P transactions on Spain's real-time payment service for the smartphone was 98.95% in the year 2021, followed by C2eR and C2R, respectively.
- All of the above mentioned factors are expected to boost the P2P real-time payment transactions over the forecast period.
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Rising Smartphone Penetration is Expected to Foster the Real Time Payments Market
- The most popular real-time payment method in Spain is Bizum, which offers mobile and QR-code payment services. Also, Bizum functionalities are integrated within the website and mobile apps of the participating banks. The growing mobile and internet penetration in the region is expected to drive the real-time payments market in Spain.
- For instance, as reported by GSMA Intelligence, the number of mobile cellular connections in Spain grew from 52.3 in January 2017 to 55.5 in January 2022.
- Furthermore, as data reported by Hootsuite, the number of internet users has been continuously increasing in the region over the past few years. There were 37.8 million internet users in January 2017, which grew to 43.9 million in January 2022.
- Moreover, the rise of mobile commerce further fuels the growth in the region's real-time payments market. Increasingly, the people of Spain are relying on faster payment methods to make their purchases. This makes it incredibly important for organizations doing business in the country to offer real-time payments for online shopping. Many major players such as Klarna and Afterpay have already introduced their regional BNPL services.
- All of the factors above are expected to boost the real-time payments market in the region over the forecast period.
The competition in the Spain real-time payments market is high, and the market appears to be fragmented. Major players offer innovative payment solutions and indulge in mergers and acquisitions to gain market share. Major players in the Spain real-time payments market include ACI Worldwide Inc., Fiserv Inc., Mastercard Inc., and FIS Global, among others.
- March 2022 - Santander announced the launch of a real-time payments solution enabling customers to make transfers into Brazil in local currency. The new service, delivered through the bank’s payments FinTech PagoNxt, will allow instant payments for companies from Europe to Brazil. The bank’s SME and corporate clients in Spain will be able to make instant international payments in Brazilian real to recipients in Brazil through online banking.
- December 2021 - BNP Paribas continues to roll out the SEPA Instant Payments plan across Europe. BNP Paribas has activated SEPA Instant credit transfers in Spain for its corporate customers, including EDPR, a global leader in the renewable energy sector.
- January 2022 - Spanish banking giant Santander has launched a new buy now, pay later (BNPL) platform called Zinia. An initial version of the platform, developed by Santander’s Digital Consumer Bank (DCB), which combines Santander Consumer Finance (SCF) and the firm’s digital banking subsidiary Openbank has been in use in Germany since last year, where the bank says it has already acquired more than two million customers. Santander plans to roll out the service across its other European markets under the Zinia brand, starting with the Netherlands and then Spain later this year.
- November 2021 - NINETY NINE announced instant payments for its Spanish Brokerage and partnered with TrueLayer to improve the investor experience using open banking payments. The Spanish broker expects the collaboration to result in an empowered client base by offering them access to instant payments.
Table of Contents
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness-Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Evolution of the payments landscape in Spain
4.4 Key market trends pertaining to the growth of cashless transaction in Spain
4.5 Impact of COVID-19 on the payments market in Spain
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Smartphone Penetration is Expected to Boost the Real Time Payments Market
5.1.2 Growing Need for Faster Payments and Falling Reliance on Traditional Banking
5.1.3 Immediacy and Ease of Convenience of the Real Time Payments
5.2 Market Challenges
5.2.1 Payment Fraud and Security Issues
5.3 Market Opportunities
5.3.1 Government Policies Encouraging the Growth of Digital Paymentis expected to aid the growth of Real Time Payment methods amongst commoners
5.4 Key Regulations and Standards in the Digital Payments Industry
5.4.1 Regulatory Landscape Across Spain
5.4.2 Business Models with Potential Regulatory Roadblocks
5.4.3 Scope for Development in Lieu of Evolving Business Landscape
5.5 Analysis of major case studies and use-cases
5.6 Analysis of Real Payments Transactions as a share of all Transactions with a regional breakdown of key countries by volume and transacted value
5.7 Analysis of Real Payments Transactions as a share of Non-Cash Transactions with a regional breakdown of key countries by volumes
6. Market Segmentation
6.1 By Type of Payment
7. Competitive Landscape
*List Not Exhaustive
7.1 Company Profiles
7.1.1 ACI Worldwide Inc.
7.1.2 FIS Global
7.1.3 Paypal Holdings Inc.
7.1.4 Fiserv Inc.
7.1.5 Mastercard Inc.
7.1.6 VISA Inc.
7.1.8 Brite AB
7.1.9 Payfare Inc.
7.1.10 Apple Inc.
8. Investment Analysis
9. Future Outlook of the Market
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Frequently Asked Questions
What is the study period of this market?
The Spain Real Time Payments Market market is studied from 2020 - 2027.
What is the growth rate of Spain Real Time Payments Market?
The Spain Real Time Payments Market is growing at a CAGR of 16.8% over the next 5 years.
Who are the key players in Spain Real Time Payments Market?
ACI Worldwide Inc., FIS Global, Paypal Holdings Inc., Fiserv Inc., Matercard Inc. are the major companies operating in Spain Real Time Payments Market.