Bizum is preparing to make the leap into the physical world. The peer-to-peer payment platform, with 31 million users in Spain, will allow payments in stores by tapping your phone to the POS terminal using NFC technology. Transactions will be instant, directly competing with Apple Pay and Google Pay. Additionally, the merchant receives the payment immediately, compared to the 24-48 hours of traditional cards.
How NFC payments work and the new banking monetization 💳
NFC technology will allow users to link their Bizum to a card or bank account and pay with a simple gesture, without opening the app. The POS terminal will process the transaction in seconds, using the same standard as digital wallets. For the first time, Spanish banks will be able to monetize Bizum with transaction fees charged to merchants, a model that did not exist until now and changes the rules of the game for financial institutions.
The POS terminal will no longer give you a poker face 😅
Now, when you pull out your phone to pay, the POS terminal will no longer judge you for whether you have cash or a forgotten card at home. With Bizum NFC, you just need to tap your phone and hope the battery holds out. Merchants, for their part, will celebrate having the money instantly, though they will surely still ask if you want to round up to donate to an NGO. The payment revolution arrives, but the ATM still hasn't gotten the memo.