Bizum, the app that has made cash obsolete at dinner parties across Spain, is now moving into physical stores.
Starting May 18, Bizum Pay will use NFC technology to route payments directly from a customer's bank account to the merchant's via instant transfer. This bypasses the networks of Visa and Mastercard, cutting out foreign intermediaries and reducing reliance on US-owned infrastructure.
With more than 30 million users-practically the entire adult banking population in Spain-Bizum has become an ecosystem attracting attention from Brussels and New York. The platform processes 3.4 million instant transfers per day and already has 111,000 businesses integrated into its digital network. Some 40 banking institutions, including CaixaBank, Sabadell and Bankinter, are backing the rollout, with full implementation expected by year-end.
The move poses a direct challenge to Visa and Mastercard, which typically charge merchants interchange and service fees of 0.2% to 2%. Bizum offers instant settlement and significantly lower fees. In e-commerce, Bizum handled over 100 million payments in 2025 and has reduced cart abandonment rates. Analysts project Bizum could capture 25% to 35% of in-store payment volume in Spain within two to three years.
Visa and Mastercard are expected to defend their position with loyalty programs, purchase insurance, and deferred payment options-areas where Bizum currently does not compete. However, Bizum's advantage lies in its widespread adoption and lower costs for merchants.
Spain's success with Bizum is now being positioned as the foundation for the European Payments Initiative (EPI), with ambitions to enable seamless payments across the continent, from Milan to Lisbon.