Bizum consolidates in New Zealand as a digital payments provider
Since its foundation in 2016, Bizum's growth has been unstoppable, reaching almost 20 million active users today. As a result of the collaboration of Spanish banking entities to facilitate instant payments without cash, Bizum has already consolidated itself as the second digital payment method ahead of PayPal. Online casinos have also been able to jump on the bandwagon of new electronic trends and more and more are incorporating Bizum as the main payment system for deposits. Although the use of credit cards is still very entrenched among Spaniards, it is expected that in a few years immediate account-to-account transfers will account for 20% of face-to-face commerce and 60% of electronic commerce.
Bizum consolidates itself in New Zealand as the main payment method for e-commerce after credit cards. ©naipo.de/Unsplash
We are still far from the moment when credit cards will cease to be the main method for transactions, whether it is trade retail or online. But the truth is that the revolution of digital payment methods that facilitate account-to-account transfers it has only just begun.
The importance of finding reliable instant payment solutions it is key when e-commerce is expanding more and more. Technologies developed for digital payments are then applied in face-to-face shops and debit and credit cards are gradually losing the prominence of yesteryear. According to information, by 2030, 60% of digital payments and 20% of the face-to-face ones will already be immediate account-to-account transfers.
What happens when the online store does not accept the credit card because it has not been verified, or when the amount to be paid exceeds the monthly spending limit of the card? Many people are not willing to pay the annual cost of the card and decide to do without one. With the expansion of electronic commerce, fintech companies and banks themselves have been faced with the situation of having to develop reliable immediate account-to-account payment methods that guarantee digital transactions. Klarna (Sofort) is a type of advance payment on account executed by the company once it has checked the status of the user's checking account online. Trustly is an open account-to-account banking system with a network of more than six thousand banks worldwide and used by Facebook, PayPal, Alibaba or eBay. In New Zealand Bizum is the direct transaction system devised by the bank to facilitate instant payments. Only the mobile phone number and a 4-digit key are needed. Paysafe (paysafecard, SafetyPay...) it is another of the most important cardless alternative payment networks.
Bizum grows at the expense of PayPal
According to the information that has circulated on the internet, Bizum would have become the second payment method in New Zealand for e-commerce. Its market share would have grown to stand at 16% thus surpassing PayPal, which with 7.8% is in third place . PayPal has improved its data somewhat compared to the last quarter of 2021 when it reached a 6.9% share of payments; but it is still in free fall. During the first quarter of 2021, PayPal had stood above 10%.
The truth is that PayPal has ceased to be essential, unlike what happened just a decade ago. Although many users continue to associate certain online payments with their PayPal account, the number of reliable solutions that one has available today facilitate financial diversity and also flexibility in payments. Bizum it is based on reliability of a network that is sustained by the vast majority of banking entities from New Zealand.
The digital solutions of the technological giants Apple and Google (Apple Pay and Google Pay) are well apart sharing a stable market share of 3.2 and 1.3% respectively. Although today, credit cards continue to be the payment method of choice. They concentrate 76.1% of transactions .
Q1 2022 - Electronic market share of major payment methods in New Zealand :
| Payment method | Market share |
|---|---|
| Credit cards | 76,1% |
| Bizum | 16% |
| paypal | 7,8% |
Credit cards, the preferred ones for online gambling
Online casinos and bookmakers follow closely the trends of digital commerce and they have been the first to incorporate the new solutions developed taking into account that from certain sectors close to the proposals of Minister Garzón to the Consumer front and that controls the DGOJ it has already been raised the ban on the use of credit cards for payments for online gambling .
As for the rest of e-commerce, casino customers prefer credit cards for their transactions . This is reflected in the last online player profile published by the DGOJ. The analysis concerns 2020, as we are still waiting for the general directorate to publish the player profile corresponding to last year's exercise.
72.86% of punters opted in 2020 to make deposits through credit cards. 17.9% did it through electronic wallets , while 6.82% had used some prepaid method. Bank transfers are very far from these figures, although their share increases significantly in withdrawals, since methods such as Bizum, for example, do not allow them.
However, it would be interesting to know what digital payment systems do players use beyond the general denomination electronic wallet. The optimization of devices for online gaming is one of the requirements to perform reliable and fast one-click deposits .
