We show you the differences between Bizum and PayPal, two of the most popular platforms for sending money to friends and family.
Send money to our loved ones, friends or family It can turn out to be a more difficult task than it initially seems. Although it is true that there are many methods available for this, in recent years they have become much more standardized. platforms such as Bizum or PayPalbut the reality is that not both are so useful in all cases and that there are many factors that must be taken into account when choosing said platform.
The advantages and disadvantages of Bizum and PayPal, as well as the operating systems, make the recommended uses for each of them different, so you should pay great attention before starting to use one or the other. In fact, although Bizum is free, PayPal often has fees and commissions for offering their services, while in return Bizum is not always available.
Bizum: what it is, how it works and limitations to take into account
Bizum is a Spanish payment system that we have already discussed on several occasions and that allows you to make immediate bank transfers using the phone number of the receiving person. It is very convenient as it is directly integrated into the application of the bank of the person who sends and receives the money, although it is also true that sometimes when not all the details are known it can be more complicated of using.
The first thing you should know about it is that Bizum only works with bank accounts located in Spain. Although foreign telephone numbers can be used, the IBAN must be Spanish, something that depending on the payment to be made can be a problem. You should also be aware that there are certain limits: Normally the minimum amount to send is 0.50 euros and the maximum is 500 euros. Outside of this range, you will not have the possibility of using Bizum to make payments.
PayPal: what it is, how it works and limitations to keep in mind
PayPal turns out to be another of the great services used daily to make payments. Although there are many alternatives to PayPal, more and more stores allow you to make purchases online through said service, and has advantages such as the possibility of using the balance to pay or the protection as sellerwhich resolves many online disputes more quickly.
PayPal is one of the best-known online payment services for its great advantages
There are many advantages to PayPal, but it is not usually linked to a banking service. You can link bank cards, account numbers and more to make payments with the method that you prefer at any time, but no own IBAN will be created or similar for using it. Also perform currency conversions to save bank commissions and, in general, what you need to make payments normally.
However, what should be kept in mind is that PayPal services sometimes have additional costs. Depending on the reason for the shipment, the country of origin and destination and the conversions to be made, there is the possibility that when making the payment through PayPal, they will be charged commissions or some kind of fixed ratesomething that does not always convince users.
Bizum vs PayPal: differences and which one is better to use to make payments
At this point, we must be aware that, although both systems allow payments to be made in businesses, as well as to family and friends, there are many points that differ between PayPal and Bizum:
- Necessary requirements: while to use PayPal it is enough to create a new account from its website, to use Bizum it is necessary to have a bank account with a Spanish IBAN in one of the banks compatible with the platform and associate a telephone number.
- Ease of payment: transfers through Bizum must be made directly to a telephone number, while to pay with PayPal an email, telephone, username or even an Internet address can be used. In online stores with Bizum, it is enough to have the phone number and approve the operation at the bank, while with PayPal you must log in.
- available currencies: PayPal has the advantage that it works in euros, dollars and the vast majority of currencies, you have the possibility of automatically converting the amount of money through its service (with commission). Meanwhile, Bizum only works with euros.
- Commissions applied: Bizum is regulated by the banks, so any possible commission that is applied will be derived from them and, in the vast majority of cases, it does not have. Meanwhile, PayPal applies commissions and fees on some operations such as currency exchange, sending large amounts of money, or payments related to services or products.
- Payment security: in the case of PayPal, product purchases are protected by buyer protection, a service (at extra cost) through which the platform’s customer service could intervene in the event of any kind of problem or misunderstanding. For its part, Bizum inherits the security of the bank itself in terms of authorizations, passwords and refunds.
We compare Bizum and PayPal: which online payment system is better in each case
Taking into account the previous points, the reality is that there is no ideal service to carry out any type of online operation. If you go to Sending money to your friends or family who live in Spain is probably a better option Bizum Being easier, being done directly through the phone number and being able to receive the money instantly in the bank account.
Nevertheless, if your family or friends live outside of Spainthe use of Bizum will be complicated, and probably then it will be more feasible to use PayPal for shipping, assuming their corresponding commissions. Something similar happens when doing purchases of products or services: while if you use Bizum you will only have the guarantees of your bank, if you use PayPal it is possible that your purchases will be protected by the company’s services, which can be a great advantage in case you have any problem or you want to request a return and its refund.