Popular Local Payment Methods and Solutions in Spain

Introduction

Spain has seen the most significant rise in the population using cash to adopt digital, innovative ways. This includes contactless payments as well as digital currency methods which have been embraced by small business and the people alike. Let us have a look at how you can easily accept payments in Spain efficiently.

Key payment methods in Spain

Cash

Like most of the other countries, Spain too has a strong cash culture, particularly in small towns with limited infrastructure. The government too has imposed limits on cash transactions. It is to deal with tax evasion in a better way.

Credit and Debit cards

Visa and mastercard are widely used and accepted in Spain. American Express is accepted however has limited use due to a higher transaction fees. Contactless payments and NFC payments are also popular with a limit set which requires no PIN.

Mobile Payments

Similar to the global trend, payments through smartphones are rapidly growing. Some popular apps in Spain include BIzum, Samsung Pay, Apple Pay, Google Pay.

Bank Transfers

Bank transfers are still largely used in Spain for big and business transfers. SEPA (Single Euro Payments Area) ensures that transfers are fast and secure within the EU.

Digital coins

It may not be widespread but the concept of digital coin and currencies are slowly getting accepted in the country by various businesses and communities. It is evolving and mostly used by tech-savvy users in Spain.

PayPal

PayPal has become a common mode involving international transactions. It allows users to pay in USD or any other currency of their choice without any hassle. It is popular among e-commerce, online transactions and freelancers.

Retail Financing

Some big retailers in Spain have a system of offering installment payment options called Financing Plans (Cuotos). There are also services like Cetelem, Klarna and Aplazame which enables users to split their payments in installments making it easier for online purchases.

Best Digital Payment Solutions in Spain

Bizum

Bizum is one of the most popular and widely used solutions in Spain.
It provides instant transfers between individuals as well as is used by online businesses.
It is linked to Spanish bank accounts and requires only the user’s phone number to operate.

Apple Pay/Google Pay

These provide users with NFC-based payment solutions which are quick and easy.
They are accepted by most retailers and public places in Spain.

Klarna and Aplazame

These are apps best considered for ‘Buy now, pay later’. They allow users to slit their payments into installments.
They really are popular in the area of e-commerce offering no interest on short term payment options.

Best Online Payment gateways for businesses in Spain

PayPal

For international transactions, PayPal is the most trusted option by customers accepting multiple currencies.
It can be integrated with most platforms however comes with a high transaction fee.

TransFi

Adyen is best used for large businesses having multiple payment channel options.
It offers dynamic currency conversion with lower rates for high volume business.
It supports various channels like cards, Bizum as well as bank transfers.

Also Check out Transfi’s solution Payout, collection and payment gateway for seamless transactions and minimal transaction fees.

Redsys

Redsys is a platform backed by major Spanish banks supporting various cards and SEPA direct debit as well.
It is a secure and trusted way for transactions mainly suitable for Spanish businesses and the ones requiring integration from the banks.

^{"As contactless payments, bank transfers, and alternative payment methods continue to dominate, businesses need a partner that offers a comprehensive, future-proof payment infrastructure. TransFi enables businesses to integrate local and global payment options effortlessly, ensuring scalability and customer satisfaction."}^{- Rahul Sahni, COO & CPO TransFi}

How to accept digital payments in Spain

Choose the right platform

According to your personal and professional needs, make sure to choose the right platform.
One can use a payment gateway like PayPal and Redsys.

You can check out Transfi’s solution of payment gateway for seamless transactions and minimal transaction fees.

Sign up and set your account

Once you have chosen the platform, it is essential that you set up the account with all the necessary information and detail.

Set up the payment system

According to your needs and the platform’s provided service, set up your methods for customers to pay.

Optimization of payment methods

Once you are all set, it is important to enhance your payment methods and make them clearly visible at checkout.
Ensure smooth transaction and experience for the user by monitoring trends.

Some trends in adoption of cashless payments in Spain

Surge in Buy Now, Pay later

Services like Klarna, Aplazame are increasingly growing with more customers adopting it.
It is an easy solution for the users to split their payments in installments. It is integrated in a lot of e-commerce platforms as well in the country.

Government Push for digital payments

Being a part of the EU's plan to decrease cash dominance, the Spanish government has introduced new laws and regulations promoting the growth of digital payments.

Increase in contactless cards

Businesses in Spain have evolved to a card only model for better security and convenience.
Almost every in-store card payments are now contactless (NFC).

Adoption of blockchain systems

More and more Spanish businesses are adopting digital coin and currencies as a medium for payments.
The Spanish government too is regulating the norm offering better transparency.

Also accept payments through Transfi’s - Collect Payments Online with Automated Reminders & Real-Time Tracking

Frequently Asked Questions (FAQs)

What are some payment methods in Spain?

Cash
Credit and Debit cards
Mobile Payments
Bank Transfers
Digital coins
PayPal
Retail Financing

What are some good digital payment apps?

Bizum
Apple Pay/Google Pay
Klarna and Aplazame

What are some good payment getaways for businesses in Spain?

PayPal
TransFi
Redsys

How to accept payments in Spain?

Choose the right platform
Sign up and set your account
Set up the payment system
Optimize of payment methods

What are some trends in adopting cashless methods in Spain?

Surge in Buy Now, Pay later
Government Push for digital payments
Increase in contactless cards
Adoption of blockchain systems

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