What Is Bizum And How Does It Work?

Bizum is one of the best-known instant payment services in the online banking sector. Its immediacy, freeness and ease of use have convinced more than 15 million users.

What Is Bizum And How Does It Work?

Do you want to pay with Bizum? Keep reading! Because this isall you need to know about Bizum, the most famous mobile-mobile payment application at the moment.

“If you carry a mobile, you have money with you”, this is the motto of Bizum, an application that allows you to make instant, fast and secure payments from your mobile phone.

It is no longer strange to hear someone say “I’ll make you a bizum”, a phrase already assimilated into current jargon, especially among young people when it comes to paying in a store or restaurant. With more than 15 million users, Bizum was created in 2016 as aninstant payment service endorsed by the European Central Bank (ECB) itself.

Since its launch, the mobile payment platform has convinced70% of digital banking customersin Spain, a figure that is growing day by day. We explain everything you should know about Bizum and how it works.

Bizum, how does it work?

Bizum works in a very simple way and operates for free. For example, a user enters their online banking, selects the platform tab, writes the amount, the phone number and clicks send.

And this is what makes Bizum register more and more users to its payment and collection platform: its ease of use. However, it is not the only incentive, since another of its greatest attractions is thegratuity between transactions.

While the vast majority of banks charge a commission for making immediate or urgent transfers, there is no cost for money transfers betweenbizumers, as long as the amount to be sent does not exceed 1,000 euros and is not less than 0, 50 euros.

Quantity limits in Bizum

As of June 15, 2021, the applicationonly allows a maximum of 60 shipments per month between individual checking accounts.

Undoubtedly, it is a change in the conditions for security reasons and the trend of use among this type of users,an average of 4.3 operations per month: “Bizum adjusts the operation to the reality of the most common use among thebizumers“, indicates the company on its official page.

Bizum for private checking accounts

Regarding the amounts, the platform establishes the following limits:

• 1. Amounts less than 0.50 euros cannot be sent.
• 2. Amounts greater than 1000 euros cannot be sent (varies depending on the bank).
• 3. A person will be able to earn a maximum of2,000 euros in one day.
• 4. Some entities even limit the number of transactions per day. CaixaBank only allows 20 operations per day and a maximum of 30 per month.
• 5. BBVA limits payments to businesses through the app to 3,000 euros.

Bizum for companies

This type of account is specifically designed for companies and freelancers who want to get paid through this service. Depending on the bank, it may or may not be free. In fact, companies like Iberdrola already allow payments through Bizum.

Bizum and NGOs

Another of the characteristics of Bizum is that you can donate money to NGOs through its service. Theapphas a list with the names ofnon-profit entitiesso you can donate quickly and immediately. UNHCR, Action Against Hunger, Oxfam, Invia, Doctors Without Borders, Amnesty International, among others, have subscribed to this service.

From the official page of the platform, they indicate that you can request a certificate of donationsby sending them an email with your personal information and the date of the donation.

How is a Bizum made?

Making a bizumis very simple, although the process depends on which bank you have the current account with.

Currently, more than 30 entities are attached to this platform with the difference that some choose to integrate it into online banking and others to create a specific app for theirs.

Here we show you the steps to make a bizum from a BBVA, Kutxabank and OpenBank account.

Bizum in BBVA, OpenBank or Santander

These banks have integrated the service into their online banking application.

• Access your online banking. Click on your account.
• Select the “Bizum: send/receive money” option. You will see two tabs to choose from, one to send a Bizum and another to request it.
• Write the amount of money you want to send or receive.
• Write the concept of the shipment (optional).
• Select the phone number to which you want to send the bizum, sign with your fingerprint or pin in the message and that’s it.

Bizum in KutxaBank or CaixaBank

Other banks choose to design an app exclusively dedicated to the platform and linked to their online banking. To do this, customers of this type of bank must download a second application and register with their credentials. This is the case of Kutxabank Pay or CaixaBank Pay.

Can a Bizum be cancelled?

Bizums that are sent to another user by mistakecannot be cancelled. If this is your case, the only possible solution is to contact that person and ask them to return the Bizum to you.

Another alternative, according to the official platform, is to call your bank immediately and assess the possibilities it offers you.

Can I reject a Bizum application?

This is a very recurring case: When a contact requests a Bizum from us, can we reject the request? Yes, if you do not want to send the money requested,you can reject the requestwithout any problem.

As we have already mentioned before, the time it takes for a bizum to arrive is approximately 5 seconds. IF someone makes a request, you have a period of up to 7 days to accept it or, failing that, to reject it.

I have received a Bizum from a stranger, what do I do?

When a Bizum is received from an acquaintance by mistake, the most feasible thing to do is to return the money. However, what happens if I receive abizum from an unknown number?

Whether you receive a deposit or a request from an unknown number, the first thing you have to do is be wary and then call your bank! This way you can discover the identity of the user ordetect if it is a possible online scam.

Today, online scams(smishing, vishing and phishing)have the security of the entire country on edge. For example, a few months ago there was a very active telephone scam campaign that had to do with this platform.

The thugs posed as sellers and, given the user’s interest in an item, they requested a reserve amount through Bizum. When the money was sent, the seller mysteriously disappeared.