Latest news with #Bizum
Local Spain
a day ago
- Business
- Local Spain
Spanish banks to allow Bizum instant payments to other European countries
Banco Santander has become the first financial institution in Spain to offer Bizum payments to other European countries. The news is a step forward for digital banking in Spain, allowing people to be more financially connected with the rest of Europe. The system is based on technical connectivity enabled by the European Payments Initiative (EuroPA), which seeks to unify payment services across Europe. Following successful pilot tests, this connectivity is now a reality, and new countries and banking institutions are expected to join the network in the coming months. Thanks to the interconnection of the mobile payment platforms, Bizum customers will now be able to connect with Bancomat in Italy and MB WAY in Portugal. According to the bank, it will connect 50 million users and 186 financial institutions, which is first step while awaiting a single European solution, for which no agreement has yet been reached. This means that Santander customers will be able to send and receive money instantly from and to users in these two countries, as well as in Andorra. It will be carried out in the same way as it is in Spain, by selecting a contact in your address book via a phone number, without having to enter an IBAN or use bank cards. Although Santander is the first bank to join, it is set to be rolled out very soon by several other banks in the country. Abanca, OpenBank, CaixaBank, BBVA, and Banco Sabadell are all expected to implement this service by the second quarter of 2025. While Europe continues its search for a single solution to transfers between countries, these platforms have taken the issue into their own hands, thanks to the EuroPA initiative. The hope is that Europe will adopt this method using the existing infrastructure in the future. Bizum is a Spanish mobile service that allows users to send an amount of money that usually ranges between 50 cents and €500. It enables you to make payments or request money from a phone number, if you have a Spanish account number from a bank linked to it, and now an Italian, Portuguese or Andorran one too. It's a free app service which was launched by Spain's main banks in 2016 as a way of competing with other mobile payment services such as Apple Pay, Google Pay, Samsung Pay, Paypal and others. Bizum has over 20 million users in Spain and is how many Spaniards choose to split the bill, pay small amounts for services and even pay their rent.
Local Spain
2 days ago
- Business
- Local Spain
REVEALED: Spain's best high-yield savings accounts in 2025
Pinpointing a truly high-yield savings account in Spain is a bit like finding a needle in a haystack, seeing as they're very few and far between. In the UK or US for example you can find many 5 or even 6 percent yield rates, but in Spain that's not the case and almost all savings accounts go up to just 2.5-3 percent. There are banks that offer higher initial rates, but this may only be for a few months and they usually come with extra conditions. It's also important to remember that any gains from a cuenta remunerada, as high-yield savings accounts are called in Spanish, must be declared on your tax return and the applicable tax paid. Now that prices have gone up so much though, knowing where to find the best savings accounts in Spain can be a big help. Here's what you need to know about the best high-interest accounts in Spain as of June 2025. Raisin Cuenta de Bienvenida: The Raisin Cuenta de Bienvenida or welcome account offers one of the highest percentages of APR currently at 3.60 percent on amounts up to €60,000. Unfortunately though they only offer this rate for the first three months. At the end of the three months, you can transfer your money to a savings product from one of its partner banks. The account is commission free and 100 percent online. As the name suggests it's only for new Raisin customers. Bunq Free Account: Bunq offers a commission-free savings account with a 2.26 percent interest rate on the account balance and weekly interest payments. You can link it to your Bizum account, and you are allowed make up to two withdrawals per month. Customers also get a free prepaid virtual card. Revolut's Savings Account: Online bank Revolut offers 2.53 percent APR up to a maximum of €100,000 for this online account. In order to benefit, you must sign up to their Ultra plan which costs €55 per month. You can also get free transfers with the SEPA zone. Trade Republic Savings Account: Trade Republic's Savings Account offers 2.27 percent APR on unlimited cash balances. You receive interest once a month and have the flexibility to take out your money when you want. You can also get a free card and 1 percent back on your accepted monthly card payments up to €1,500. Klarna Flex Account: Klarna offers a 2.25 percent interest-bearing, fully accessible flex account with no fees. You can open your account from the app in just a few minutes and deposit an amount with no minimum balance. Interest is calculated daily and paid monthly. B100 Savings Account: This account offers 2.25 percent APR if you open a savings account and a 3.20 percent APR yield for the Health account. The maximum amount you can invest is €50,000 in each account. It also offers free cash withdrawals in Spain. Bankinter Smart Digital Account: This account offers 2.5 percent APR up to €150,000 if you get your salary paid in and link it to your Bizum account. The rate is only guaranteed for the first three months. After the fourth month, they check if the requirements are met, if not it decreases to 2.12 percent. You can also benefit from free EU transfers, a free debit card and no commissions or fees. This is available for new customers only. This offer is only available until July 22nd 2025. N26 Savings Account: If you connect your Bizum to the account, N26's online service will offer you 2.25 percent APR with the flexibility to access your money whenever you want. The interest rate applies to deposits of up to €50,000. There are no fees, but you must be a new customer to benefit.
Local Spain
26-05-2025
- Business
- Local Spain
What Spain's self-employed should know about getting paid through Bizum
Some self-employed people (autónomos) in Spain heavily rely on getting paid through Bizum, an app, which allows you to make payments or request money from a phone number, if you have a Spanish account number from a bank linked to it. Bizum has over 20 million users in Spain and is how many Spaniards choose to split the bill, pay small amounts for services and even pay their rent. If you get paid part of your income through Bizum, however, you should already know that you have to be careful because it has certain limits and conditions when it comes to paying taxes in Spain. This means that payments are recorded in the same way as other banks, so you must make sure you're declaring any income you receive through the app, including gifts from family and friends. Up until now, only amounts over €3,000 were recorded and sent to the Tax Agency, but starting in January 2026, the authorities will begin receiving detailed data every month on all transactions carried out by freelancers and small businesses through Bizum and other payment platforms, regardless of the amount of each transaction. From this date onwards platforms must submit the identification of the professional or company receiving payments, the merchant number, the sales terminals used, whether or not they are in Spain, the monthly amount billed, the type of payment method and payment destination. This means that any amount, no matter how small, will be reported to the Treasury from next year. This cross-referencing will allow the Tax Agency to verify the amount of income compared to your tax returns and detect small amounts of undeclared income, as well as the large amounts, like the current situation. Under declaring is in fact common for small businesses in Spain and something that the government are intent on fighting against, so you have to be extra careful and make sure you declare everything correctly. Stats show the underground economy represents about 15.8 percent of Spain's GDP. This all means that from next year the situation will become very complicated for autónomos because if you use Bizum for your business, but you also use it with friends and family, there will be very little distinction between the two. For example, if a friend pays you back via Bizum for a coffee you bought them or you buy tickets for a group of friends to go to the cinema and they each pay you back individually, it will look as though you've received income. You obviously won't have reported these amounts as income on your quarterly tax return because they're not – it's just friends paying you back for money they owe you. With this new reform, Bizum will go from being an app for transfers between friends into another tool for tax audits and increase the Tax Agency's control over the self-employed. If you do work for yourself and use Bizum to collect payments for services or sales, all professional income received through Bizum and similar platforms must be declared along with the corresponding VAT. Occasional payments between individuals for do not require a declaration if they do not exceed €10,000 per year and are not for commercial purposes. This is the same with reimbursements between friends or family, as long as they are not professional income. It may however, be confusing for both you and for the Tax Agency to distinguish between the two and decide which are reimbursements and which is income from clients or customers, therefore, you must learn to identify and classify the transactions in order to differentiate between personal and professional income. Professional income from Bizum must be accompanied by a corresponding invoice and be taxed like any other income from work. This means it's essential to keep records, invoices, and receipts for payments received via Bizum. Your bank should also allow you to view and download your Bizum transaction history to help. Failure to declare taxable income can result in fines ranging from €3,000 for a minor infraction, as well as a surcharge of up to 50 percent of the amount that was not paid. For a serious offence when undeclared income exceeds €3,000 there could also be a surcharge of between 50 and 100 percent of the amount that was not declared. Finally, for very serious offences you will be fined 150 percent of the amount not declared. It is considered a tax crime if the amount defrauded exceeds €120,000. Our journalists at The Local are not tax experts, we learned the hard way by reading laws and rules, and speaking with experts. If you're unsure about how to declare any payments or which payments you should declare it's important to contact a tax professional in order to advise you.
Yahoo
04-04-2025
- Business
- Yahoo
The digital Euro & Co.: Does Europe really need a new payment system?
Europe's payment landscape is undergoing a transformation. Digital wallets, open banking, real-time transfers – and potentially, a digital euro – are emerging and being pushed into the market. Yet, despite these innovations, one question remains: Do consumers actually want new payment methods, or are their benefits ultimately limited? Europe's payment ecosystem is highly fragmented. While many Germans still prefer cash, iDEAL dominates in the Netherlands, BLIK in Poland, and Bizum has become the go-to instant payment method in Spain. Meanwhile, an increasing number of mobile wallets and open banking solutions are competing for consumer attention, gradually pushing cash and traditional cards into the background. New initiatives, such as the digital euro and Wero, aim to bring more uniformity. Their goal is to create a European payment system that operates independently of global payment giants like Visa, Mastercard, and US tech corporations. The European Central Bank sees the digital euro as a path to greater financial sovereignty and efficiency, providing a secure, real-time European payment solution. These initiatives promise progress. But as policymakers and businesses focus on implementation, the key question remains: Are these solutions truly what consumers want? If there's one thing we've learned, it's that payment habits can evolve often faster than expected. The Covid-19 pandemic was a clear example. Practically overnight, concerns about hygiene made cash payments in Germany seem outdated, and contactless payments became the norm. Today in Germany, even small transactions in bakeries or kiosks can be made seamlessly via card or smartphone – something that would have been unthinkable just a few years ago. When the right incentives are in place, consumers are willing to adapt, even in areas as deeply rooted as payment behaviour. Across Europe, a clear trend is emerging: less cash, fewer paper transactions, and a growing shift toward digital payments. From smartwatches to digital wallets and cashier-less "Buy & Go" supermarkets, payments are becoming seamlessly woven into everyday life. One trend is clear: the younger the consumer, the less friction they're willing to tolerate. Flexibility and choice of payment options are generally welcomed. However, not every new payment method succeeds. The struggles of Samsung Pay, Giropay, and Kwitt raise an important question: Why do some solutions thrive while others fade into obscurity? And what does this mean for upcoming innovations like the digital euro or Wero? In my experience, consumers don't like to experiment when it comes to their money—they want solutions that are simple, secure, and reliable. Cash, for example, requires no technology, works everywhere, and is widely trusted. However, it can be inconvenient for large transactions or unexpected expenses, which is why card payments continue to gain traction. Counting coins gives more friction than tapping a card or a phone. Convenience is key. People don't want to juggle multiple payment apps for different services or countries. They want a single, seamless digital wallet that works everywhere. That's why solutions like Apple Pay are gaining popularity. A new payment method must offer clear advantages over existing ones to gain adoption. While policymakers may focus on the bigger picture, consumers care about one simple question: How does this benefit me? If a new payment method doesn't offer a tangible improvement, people won't change their habits. And habits are very difficult to break. For a new payment method to succeed, it needs to be more than just another way to pay—it must solve a real problem. Consider three success stories: PayPal simplified money transfers between friends without requiring an IBAN. Klarna made online shopping easy with its flexible "buy now, pay later" model, as you only need your address to pay, plus it solved for buyer protection like no other method. Simply said, nothing protects you more than if you haven't paid for it yet. Apple Pay eliminated the need for physical cards but moreover didn't require you to download apps, offering a fast and secure way to pay via smartphones and wearables. Each of these innovations addressed a genuine consumer need, making them indispensable for both users and merchants. By contrast, Giropay/Paydirekt struggled because it failed to offer a compelling advantage over existing options – so consumers simply ignored it. They focused on merchant acceptance instead of consumer acceptance. Other countries have seen similar patterns. In Sweden, Swish took market share by storm. In Switzerland, it's Twint. In many cases, banks have played a key role in developing and promoting these systems. But ultimately, their success came down to one thing: they provided a better alternative to what already existed. Payment solutions don't fail because of poor technology or lack of infrastructure. They fail because consumers don't see a need for them. No matter how innovative a new system is, it will only succeed if it provides real value, an incremental benefit above their current habit. This is the fundamental challenge for the digital euro, Wero, and any future payment innovation. If they don't offer a clear consumer benefit, they risk being just another well-intentioned but underutilised initiative. Robert Bueninck is Chief Executive Officer of the Unzer Group "The digital Euro & Co.: Does Europe really need a new payment system?" was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
