Bizum Is Introducing Bizum Pay to Rival Apple Pay and Google Pay

Hey Payments Fanatic!

Bizum is stepping up to the plate, ready to take on Apple Pay and Google Pay with its very own NFC payment system, aptly named Bizum Pay.

You can send money instantly to a contact using Bizum without fees.

Bizum is already a go-to option for in-store payments, working just like a debit card—and yes, even Amazon now accepts it.

By 2025, Bizum plans to level up with Bizum Pay, which will allow you to make mobile payments like with Apple Pay or Google Wallet.

This new contactless system, backed by most Spanish banks, will bring NFC technology to smartphones. It will enable quick transactions at any standard payment terminal and directly link to your Bizum account.

Bizum Pay will connect with Bizum accounts and support cards from other partner banks, offering flexibility. When paying, users will have the choice to select the account or card for the transaction, making it easier than ever to manage their payments.

Are we going to see NFC P2P payments similar to Apple Tap To Cash in Spain in 2025 as well? Tell me what you think in the comments.

Cheers,

Marcel

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GOLDEN NUGGET

Digital Wallet Apps: how do they work?

Basically, there are 3 distinct groups of B2C wallet apps:

1️⃣ 𝗣𝗮𝘀𝘀-𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝘄𝗮𝗹𝗹𝗲𝘁𝘀; commonly designed as mobile-first, keep tokens that link to your credit and debit cards instead of storing sensitive data or money directly.

They don’t take part in moving funds. Once a transaction is initiated, such apps just pass encrypted information to a merchant — hence, the name.

In the course of further payment processing, the token travels to a payment network to be decrypted and checked against the actual card or account information in the issuing bank. After verification, the payment gets approved and sent to a merchant’s acquiring bank.

So, only the network and an issuing bank will know the actual card or account details.

Known for high security, pass-through wallets act essentially as extensions of credit and debit cards, so they are more widespread in regions with high card adoption, such as Europe and North America.

Major examples: Apple Pay, Samsung Wallet, Chase Mobile app

2️⃣ 𝗦𝘁𝗮𝗴𝗲𝗱 𝘄𝗮𝗹𝗹𝗲𝘁𝘀; also house tokenized payment details but don’t transmit them anywhere. Instead, they perform transactions in two stages.

At the funding stage, the wallet acquires money from a customer’s bank account, credit line, or other source. Then, at the payment stage, it sends funds to a merchant.

In this scenario, a wallet provider can make additional fraud assessments. At the same time, a payment network or card issuer may know nothing about details of a particular transaction that are disclosed during operations with pass-through solutions.

Staged options often support peer-to-peer transfers and cryptocurrencies and allow for storing funds right in the wallet’s account.

Major examples: PayPal, Google Wallet (former Google Pay), Cash App (the US and UK only)

3️⃣ 𝗦𝘁𝗼𝗿𝗲𝗱 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝘄𝗮𝗹𝗹𝗲𝘁𝘀; work as prepaid cards. Before making a transaction, a user must load money to a wallet’s balance from a bank account, debit or credit card, via peer-to-peer transfer, etc.

The availability of funding sources differs across providers, depending on the location and targeted users. A merchant withdraws money directly from the wallet.

Stored wallets are especially popular in unbanked and underbanked countries since they enable people to deposit money without having a bank account.

Major examples: Apple Cash (US only), Alipay (China’s most popular), WeChat Pay, Paytm Wallet (India’s largest platform for instant payments).

I highly recommend reading the deep dive article for more interesting info on this topic.

Source: AltexSoft

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