Spain had a robust and rapidly growing payment card market. Use of payment cards had been supported by a steady fall in interchange fees. With the new EU interchange fee in place, payment card transaction volumes and values are anticipated to grow further.While Spain has progressed well in terms of the implementation of electronic payments, cash remains the preferred mode of payment among Spanish consumers, accounting for more than 65% of the total payment transaction volume in 2017.
Debit cards remained the most widely used payment card type during the review period (2013-17e), accounting for over 70% of the total value of payment card transactions in 2017. The continued migration of low-value cash payments to debit cards, new regulation prohibiting banks and ATM network providers from charging excessive fees for cash withdrawals, and the rising adoption of contactless technology have led to the high use of debit cards.
Spanish consumers are particularly comfortable with e-commerce, and this channel will report significant growth over the next five-year period. Credit and debit card use accounts for over 32% of total e-commerce. The most important reasons for using credit cards online cited by Spanish consumers are convenience, security, and comfort. In addition to traditional payments, alternative payments are used extensively for online shopping.
Alternative payments are gaining traction in Spain, with banks and payment companies introducing new solutions to gain market share. Recent initiatives include the launch of Android Pay in July 2017, Apple Pay in December 2016, and Samsung Pay in January 2016. To compete with international players, Bizum was mutually launched by 27 Spanish banks in October 2016. Bizum is integrated into the banks’ apps and lets users conduct P2P, in-store, and online payments instantly through their mobile phones.
The report "Payments in Spain 2017: What Consumers Want", examines the consumer payments market in Spain, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless. The report also examines the main regulatory players overseeing the market.
In depth, this report provides the following:
- Analyzes consumer attitudes to financial services by lifestage.
- Analyzes the major payment card types in terms of both card holding and usage.
- Identifies the major competitors in card issuing and how their position in the market has changed over the last five years.
- Considers consumer attitudes towards P2P tools, mobile payment tools, and contactless cards, and how companies in Spain are deploying these tools to meet customer needs.
- Explores the online payment market in Spain by merchant type and payment tool, as well as providing a five-year forecast for the development of the market.
- In October 2015, the national postal service operator Correos partnered with the UK-based prepaid card issuer Prepaid Financial Services to launch the contactless Correos Prepago Mastercard card. The card can be purchased via the national network of Correos post offices, and can be loaded via credit and debit card online or at any of the Correos branches in Spain.
- The emergence of digital-only banks is likely to accelerate the shift towards electronic payments in Spain. The mobile-only imaginBank, launched by CaixaBank in January 2016, provides banking services exclusively through mobile apps and social networks.
- To prohibit banks and ATM network operators from charging high fees for cash withdrawals, the Spanish government introduced a new regulation restricting the practice in October 2015. Following this regulation, banks and ATM network operators agreed to cap withdrawal fees effective from January 2016.
- Understand the key facts and figures in the consumer payments market in Spain.
- Learn what trends drive consumer behavior at the macro level and plan your strategy accordingly.
- Find out what products the major competitors are launching in the market.
- Discover consumer sentiments towards various payment tools in the Spanish market and use this knowledge to inform product design.
Payments Infrastructure & Regulation