The instant payment platform celebrates a decade since its foundation in 2016 by 29 Spanish entities. Brussels promotes it to reduce dependence on the United States in digital payments.
Bizum celebrates its tenth anniversary this week. The instant payment platform, created in 2016 by 29 Spanish credit entities, has become a tool that the European Union aims to leverage to gain strategic sovereignty in the payments sector, according to elperiodico.com.
In its first year, at the beginning of December 2016, Bizum already had more than 230,000 customers who had completed over 185,000 transactions, mobilising 7.5 million euros. The initial adoption was positive and anticipated subsequent exponential growth.
The ownership structure of the 'joint venture' is led by CaixaBank, with a 24% stake. Santander and BBVA hold shares between 18% and 20%. Other entities maintain minority percentages based on their size.
In 2019, Bizum made a significant leap by enabling payments in online stores. Until then, the platform only allowed instant transfers between individuals using their phone numbers. With the entry into online commerce, Bizum began to compete with cards and PayPal.
By the end of 2019, the platform already allowed payments at more than 250 online stores and launched the 'Bizum key', a code associated with the phone to facilitate online purchases. Among the first companies to adopt it were Iberdrola, Yelmo, Alsa, Decathlon, Baleària, and Logitravel.
The 2020 pandemic accelerated the use of digital payments and consolidated Bizum as an alternative to traditional systems. Now, the European Union is working on homegrown solutions to reduce dependence on the United States in payments, both online and in physical commerce, and has boosted the development of Bizum as part of that goal.
With a decade of experience, Bizum has established itself as a standard in Spain and looks towards a more significant role in the European arena. The platform remains owned by Spanish banking, and its evolution will depend on how Brussels' technological sovereignty strategy progresses.
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