Spain Country Report
- Published Date: March 2021
CARDS PAYMENTS & CONSUMER BANKING IN SPAIN
A detailed and comprehensive report on the 2021 cards payments and consumer banking market in Spain with clearsighted commentary backed by detailed market data.
The rapid acceptance of contactless payments and P2P transfers sets Spain apart as a payments market to watch. The population is enthusiastic about these methods, which have grown considerably in recent years, especially in 2020, that saw the market hit an inflexion point for declining cash usage. Further bank mergers are likely in the coming years, with the launch of a new national card brand certain once the public health situation has stabilised.
What you will learn from this 2021 Spain cards market report:
- How a significant opportunity has arisen as habits change
- What banking reform has meant to payments in Spain
- Which players are availing of BNPL demand
- Why deferred debit has grown
- How issuers in Spain have adjusted approach since 2014
CARDS & PAYMENTS REPORT SPAIN | KEY FACTS
- Spain is a fast-growing payments market with a traditionally cash-orientated economy that is gradually embracing electronic payments. The average adult made 142 card payments in 2020, double the number in 2014.
- Contactless has been a key driver of this growth. Verisk Financial Research estimates that four-in-five card purchase transactions in 2020 were contactless.
- The banking sector has seen extensive consolidation since 2009, and the latest merger between CaixaBank and Bankia will create the largest bank in the country.
- Credit card borrowing slowed in 2019 as high interest rates were challenged in the courts following a period of high growth.
- In March 2020 the Supreme Court ruled that interest rates double the average consumer loan rate could be considered usury.
- Credit card APRs, therefore, declined in 2020, which, combined with the effects of the coronavirus, resulted in an estimated ten percent fall in credit card profitability.
- A collaborative venture from Spanish banks, Bizum has proven popular for P2P transfers, with close to one-third of the adult population using the payments app.
- Bizum has added online payments and some limited QR code functionality, which should drive further adoption.
- Buy now, pay later (BNPL) is increasingly popular, with Klarna, WiZink's Aplazame and Afterpay's Pagantis reaping the rewards of pandemic-fuelled demand.
Spain Payments Research | Report Contents
Key Topics
Demographics and the economy
Payments environment
Spanish cards market data
Mobile payments
Profit pool
The networks
Key retail banks and issuers
Acquiring and processing
Online acquiring
Regulatory and other cards market information
Appendices: Card Payments Data Spain
Appendix I: Demographics and the economy
- Demographic and economic indicators
- Ownership of key consumer devices
- Internet usage by population
Appendix II: Payments environment
- Access points
- Account penetration
- Consumer payment trends
- B2C e-commerce payment methods
Appendix III: Cards market
- Total cards payment metrics
- Contactless cards metrics
- Credit card numbers
- Total credit cards metrics
- Credit cards profitability indicators
- Debit cards numbers
- Debit cards metrics
Appendix IV: Mobile payments
- Mobile proximity payment metrics
- Mobile P2P payments
Appendix V: Profit pool
- Spanish profit pool
Appendix VI: Card networks
- Networks' credit card market shares
- Networks' credit card numbers
- Networks' credit card billed volume
- Networks' number of credit card transactions
- Networks' average credit card transaction value
- Credit card interchange fees by network
- Networks' debit card market shares
- Networks' debit card numbers
- Networks' debit card billed volume
- Networks' number of debit card transactions
- Networks' average debit card transaction value
- Debit card interchange fees by network
Appendix VII: Key retail banks and issuers
- Key credit card issuers market shares by credit card numbers
- Key issuers market shares in credit card outstandings
- Key debit card issuers market shares by debit card numbers
Appendix VIII: Acquirers and processing
- Merchant acquirer credit card market share
- Credit card merchant service charges
- Merchant acquirer debit card market share
- Debit card merchant service charges
- Credit card issuer/issuing processor relationships
- Credit card acquirer/acquiring processor relationships
- Credit card issuing processor market shares by card numbers
- Credit card acquiring processor market shares by the number of POS transactions
Appendix IX: Online acquiring
- Online merchant acquirer market share
Spain Country Report | Selected Extracts
Demographics and Economy:
After a sharp reversal of economic prosperity in 2008, growth returned in 2014 because of structural reforms to improve competitiveness and attractiveness for foreign investors. Average GDP growth reached 2.6% between 2014 and 2019, although it decreased by about 9% during 2020 due to the pandemic
Payments Environment:
During 2020, the total value of payment cards purchases continued to gain share relative to ATM cash withdrawals, representing 67% of the total value of card billed volume. The cash ratio has been in decline since 2014, and it will almost certainly continue to do so ... as Covid-19 continues to impact behaviour.
Cards market:
Payment cards are relatively well embedded among Spanish consumers, with 88% of adults holding a debit card and 55% a credit card. However, Spanish issuers have long tended not to make a clear distinction between the two, viewing cards as payment instruments or cash substitutes.
Mobile Payments:
The most important development in mobile payments has been the launch of Bizum in October 2016: this mobile transfer and payments app, owned by 25 banks, is primarily used to carry out person-to-person transfers.
Profit Pool:
Between 2014 and 2019, credit card outstandings grew 47%, with a stable average rollover rate of 65%. During 2020, credit card outstandings decreased by 7.4% due to the effect of the pandemic on consumer spending
Card Networks:
Visa leads the Spanish credit cards € market in terms of both billed volume and number of cards in issue. Mastercard is a secondary player in the market. From 2014 to 2020, the total debit card billed volume grew by 78%, demonstrating the popularity of debit cards.
Key Retail Banks and Issuers:
The Spanish credit cards market is competitive, with the leading banks competing with a small number of specialist consumer finance and credit cards specialists. Between 2016 and 2020, the top five issuers market share grew from 72% of total card outstandings to 75%.
Acquiring and Processing:
With approximately 2.06 million POS terminals at the end of 2020, Spain has one of the largest acquiring networks in Europe. At 5,110 terminals per 100,000 adults, the country is above the EU average in terms of POS density.
Online Acquiring:
Total online acquired purchase volume came to $33.7 billion in 2020, an increase of 43% over 2018. Debit cards are more popular than credit cards when paying for online purchases.
Regulatory and Markets Information:
To offer financial services here it is necessary to have a banking authorisation or licence. Fintechs are no exception: to operate they need an electronic money (EDE) licence or to establish a partnership with an EDE.
Spain Payments Report | Entities Referenced
+Renfe
2gether
4B
Adidas
AEB
Afterpay
AirPlus International
Alipay
Amazon
American Express
Android Pay
Aplazame
Apollo Capital
Apple Pay
Asociación Española de Banca
AvantCard
Avios
Banca Civica
Banco Bilbao Vizcaya Argentaria
Banco Central
Banco de España
Banco de Valencia
Banco Gallego
Banco GNB Paraguay
Banco Guipuzcoano
Banco Hispano Americano
Banco Popular
Banco Portugués do Investimento
Banco Sabadell
Banco Santander
Bancopopular-e
Banesto
Banif
Bank of America
Bank of Spain
BankAmericard
Bankia
Bankinter
Bankinter Consumer Finance
Barclays
Barómetro Mastercard
BBVA
BCF
BDE
Bip & Drive
Bitcoin
Bitcoin Cash
Bizum
Bnext
BPI
Caixa Penedes
CaixaBank
Caja Laboral Popular
Cajamar
CAM
Capital One
Caprabo
Carrefour
CECA
Cetelem
Citi
Clearpay
CNMC
COCEM
Comercia Global Payments
Comisión Nacional de los Mercados y la Competencia
Decathlon
Deutsche Bank
Diners Club
Discover
El Corte Inglés
Eos
Español de Crédito
Ethereum
Euro 6000
Eurobits
Evo Banco
Evo Bank
Ferratum Bank
Fondo de Reestructuración Ordenada Bancaria
FROB
GFK
Global Payment Moneytopay
Global Payments
Glovo
Google Pay
Grupo Caja Rural
H&M
Hugo Boss
Iberia Airlines
Iberia Plus
Iberpay
Ikea
imaginBank
ING
ING Direct
iZettle
JCB
Klarna
Leroy Merlin
Liberbank
Litecoin
Lloyds
Madrid City Council
Madrid Trade Confederation
Mastercard
MBNA
McDonald's
Meliá
Mercadona
Metro de Sevilla
Momo
N26
Nomo Banking
ONTSI
Openbank
Orderly Banking Restructuring Fund
Pagantis
PayPal
PC Componentes
Pecunia Cards
PNC Financial Services Group
Redes y Procesos
Redsys
Regalo
Renfe
Repsol
Revolut
Ripple
Roboadvisor
Rodilla
Sabadell
Samsung Pay
San Miguel Market
Santander
SERMEPA
Servired
Sipay
Sistema 4B
Sistema de Tarjetas y Medios de Pago
Sistema Nacional de Compensación Electrónica
Smartme
SNCE
Sociedad Española de Sistemas de Pago
Spanish Confederation of Savings Banks
Stellar Lumens
STMP
SumUp
Tink
Twyp
Unicaja
UniversalPay
UP Aganea
Värde Partners
Visa
Waiap
WiZink
Zara
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