Market Trends of Spain Real Time Payments Industry
This section covers the major market trends shaping the Spain Real Time Payments Market according to our research experts:
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.
Understand The Key Trends Shaping This Market
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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.
