Spain accelerates toward digital payments: Bizum and mobile are gaining ground over cash

Spain is currently undergoing one of the most crucial periods in the growth of its payment mechanisms. Cash, which has long been the unchallenged leader in everyday transactions, is losing ground to cards, mobile payments, and rapid alternatives. The most recent data from the Bank of Spain, which is featured in the Cointelegraph report, show an increasingly obvious trend: Spanish customers are not only experimenting with new payment methods, but also fast embracing them.

In 2024, 57% of in-person transactions were still conducted in cash, but the reduction is noticeable when compared to previous years. At the same time, card payments increased to 32%, and mobile payments doubled to 7%. These data demonstrate how digital is steadily advancing throughout the country’s economic structure.

Cash resists but loses power

Although it may appear to many that currency is a declining medium, it continues to play an important role. Coins and banknotes are still used for the majority of low-value purchases, such as coffee, small errands, and local transportation. However, when it comes to greater quantities, cards and mobile phones are taking the lead.

The goal is to watch the generational transition. Younger customers have practically normalised the act of holding their phone close to the payment terminal. However, cash is still widely used in rural areas and among the elderly. This coexistence is best described as a progressive change rather than an immediate replacement.

Ecommerce as a driver

The transition is particularly noticeable in the digital environment. Between 2019 and 2024, the amount of internet payments in Spain tripled. E-commerce, content subscriptions, and online service purchases have created a thriving market for cards and digital wallets.

In this situation, electronic solutions that go beyond credit cards are gaining traction. PayPal, Apple Pay, Google Pay, and immediate transfers are easy and quick options that consumers have come to appreciate. Even usually more conservative technology users, such as the leisure industry, have seen tremendous development. This is the true in online gambling, where paying with Bizum in online casinos is getting more popular because it improves speed and user confidence.

The case of Bizum requires special attention. What began as a way for friends to share expenditures or transmit little amounts has become the norm for rapid payments in Spain. According to the latest recent data, more than half of the population used this technology in 2024, with around 70% having access through their bank.

The main appeal is its immediacy. Sending money from one account to another in seconds, with no need for an IBAN or other obstacles, has transformed Spaniards’ financial habits. Furthermore, its integration with online retailers and services makes it a more reliable option than traditional cards.

The phone is a new wallet

Mobile payments at physical terminals are also exhibiting a significant increase. In just two years, the proportion of consumers who pay directly with their smartphones has doubled. Apple Pay and Google Pay are no longer exotic possibilities; they are becoming a normal part of the buying experience.

Consumers no longer expect to slide a card into a payment terminal; instead, they wish to unlock their phone and authenticate payment by fingerprint or facial recognition. This desire translates into a necessity for retailers, who must update their systems to assure compatibility with the most recent ways.

Digital payment is consolidating in Spain

Spain is transitioning to a hybrid paradigm that includes cash, cards, mobile phones, and immediate solutions. Cash is still essential in certain instances, but digital payments are becoming more popular due to their simplicity and speed.

This improvement is a result of both technology innovation and market demand, as consumers get more accustomed to immediacy and flexibility. The end effect is a dynamic ecology in which cash will become a minority in a few years, while Bizum and mobile payments solidify their position as protagonists of ordinary economic life.

The evolution of payment habits in Spain is part of a global trend that is altering our understanding of value exchange. And, while dollars and coins continue to flow in our pockets, digital technology is already driving the current pace.