PAYMENTS IN SPAIN
Spain is a constitutional monarchy with a bicameral parliament. Spain joined the European Union in 1986 and became a member of the euro zone in 1999.
Spain’s payment market was traditionally characterised as one of Europe’s cash-heavy societies, with merchants reluctant to accept card payments over high acceptance fees. But in recent years, the proliferation of contactless and mobile payment infrastructure has opened up more retailer sectors to electronic payments.
During the Covid-19 pandemic in 2020, merchants quickly pivoted towards card payment acceptance, helped by increasing consumer usage of mobile schemes like Bizum. As such, mobile payments are forming a larger proportion of contactless payment transactions with every passing year.
Waves of bank consolidation have generated better agility and innovation in banks’ digital propositions, and the emergence of bank digital payment ecosystems by the likes of Santander are set to accelerate Spain’s rapid uptake of cashless payment instruments. Instant payments too are finding favour with Spanish consumers, helped by banks becoming early proponents through Open Banking.
The adoption of the revised Payment Services Directive, PSD2, and disruptive technologies have set the stage for digital payments for the digital economy in Spain. They have accelerated digital payment transformation and mobile payment services, as well as cardless IBAN-based payments directly from bank accounts.
In the last decade, Spanish consumers have embraced mobile devices such as tablets, smartphones and Internet of Things (IoT). This change significantly impacts their shopping experience. Consumers have become increasingly connected and they have started to purchase anywhere, at any time, from any device.
In addition, new consumer demands are a game changer. Spanish consumers like digital banking apps with access to all their accounts at different banks in one single app, with the option to make payments directly from their bank account of choice. Additionally, they appreciate more banking services and payment services added to their mobile banking app. Consumer adoption of digital payments in Spanish is driven by minimal cost, secure payments and a high level of user convenience.
Driven by the development of social media and mobile devices, the emergence of permanently connected consumers has impacted their interactions with brands but also their expectations of how to shop using the increasing number of touch points between consumers and merchants, e.g.:
- Using mobile devices in-store to look up products or additional information on the internet
- Using mobile devices in-store to shop at the same merchant or online at another merchant
- Using mobile devices to purchase at home in online shops or scan outdoor for advertised products
- Using mobile apps to shop online, or using QR-codes to bridge from merchant posters to their online shops
The ongoing rollout of a mature online and mobile communication infrastructure is an enabler for digital card payment transformation and for Open Banking payments in Spain.
In a few years from now, mobile banking apps and mobile payment apps are expected to combine account management, digital payment services, personal finance management and value-added digital services from location finders to digital vouchers.
Cash payments, card payments and cardless payments directly from bank accounts (A2A payments) remain all relevant for Spanish merchants and are heavily used by Spanish consumers.
This country profile provides a brief introduction into two competing payment ecosystems in Spain:
- Card payment ecosystem
- Cardless Open Banking payment ecosystem
STATISTICAL KEY FIGURES FOR 2020 PROVIDED IN THIS PROFILE:
• UPDATED: tables with card business data 2016-2020; growth rates: Y-o-Y, CAGR
• Population, Cards per Capita, Card Value per Capita
• Debit Cards, Credit/Delayed Debit Cards, Total Cards
• Card payments by number and by value, ATV per card, payments per card/year
• ATMs, POS terminals, ATMs/POS terminals per 1 million capita
• ATM withdrawals by number/by value, ATV per withdrawal, TXs per ATM/month
• POS payments by number/by value, ATV per POS payment, TXs per POS/month
• Internet Use, e-payment mix, B2C e-Commerce by value and growth rate
• Issued Card brands by individual major issuer bank
• Accepted card brands by individual major acquirer
• Drill down into the debit card use and credit cards use details
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Version 1.0 - last updated Wednesday 26th January 2022