Bizum eCommerce: advantages and disadvantages of this online payment method

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Bizum, the Spanish instant mobile P2P payment system, already has an online payment method for e-commerce businesses to facilitate and speed up online purchases, which benefits stores and users. Bizum eCommerce is a secure payment method, with two-factor authentication meeting European Payment Services Directive PSD2. As Bizum is currently the most-used payment application worldwide, the response has been positive from users to its introduction into the world of e-commerce. We explain how it works and the advantages and disadvantages so that you can assess whether it is a good fit with your pricing strategy and your consumers’ needs. 

You can install Bizum eCommerce into your store easily through your payment gateway. Once this is done, you just add a new button in your Checkout, where users choose how to pay for the purchase. You also need to communicate to your customers and followers that this new online payment method is available. 

How does Bizum eCommerce work? 

Payment with Bizum eCommerce will be quick and easy for users. When completing the purchase, the system will ask them to input their mobile number and Bizum PIN. This PIN is a four-figure code created exclusively to make payments on this system, found on each user’s banking app. Finally, once the data has been verified, the banking entity will confirm the transaction using their usual method (SMS, app authentication, etc.) The payment process is estimated to take less than 25 seconds. 

Online payment

Pros and cons of introducing Bizum eCommerce as a payment method 

Advantages for online stores 

In addition to offering users a better buying experience as it is so fast, Bizum eCommerce allows businesses to: 

  • Receive and enter payments immediately in the bank to avoid errors, as with transactions between individuals using the same application. 
  • Employ this new online payment method with personalised terms and conditions. Bizum does not have fixed fees. It can adapt to the needs and volume of each company. Their prices also tend to be low. 
  • Gain visibility through Bizum’s website, where they periodically inform users of offers from participating retailers.  
  • Increase the conversion rate of users who are reticent to use their card or less well-known payment methods. 

Disadvantages of this new payment method 

On the downside, as payments through Bizum are managed directly through different banking entities’ mobile apps, these apps can generate errors, and some of them lack sufficient optimisation. Also, we should add the possible restrictions applied by each bank in terms of the maximum or minimum number of transactions. Therefore, it is key to check if you will be able to respond to potential peaks in demand

On the other hand, if you do not have a payment gateway but want to install Bizum eCommerce on your website, the payment authentication process becomes more complicated. In this case, checking that payments have gone through correctly must be done manually. This is a tedious task, which takes up a lot of time, and increases the risk of errors in charging for and preparing orders. Professionals agree on the clear advantages of having a payment gateway for the convenience of brands and retailers. 
If you plan to install Bizum on your e-commerce site, take the opportunity to analyse the costs associated with each of the payment methods installed on your site. Then assess the profitability of the prices charged for your products, given these costs. Then you can decide which methods generate the highest profits and gradually optimise your online store.

Angela de la Vieja
Content Manager
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