Interest in financial applications in Spain grows by 70%

The obvious growth of eBanking, financial technology and alternative payment systems is highly relevant to promoting a sustainable financial model. In the fintech world, Spain ranks seventh in Europe, according to the Ernst & Young (EY) report. Thus, it is evident the proactivity of the Spanish financial sector to achieve a technological, economic, social and environmental impact in an increasingly digitized society.

The digitization of companies has become the great engine of change. The publication Communicating Progress 2021 maintains that in Spain sustainable financing increased by 45% between 2020 and 2021; and predicts that by 2025, digital banking will reach reach 22.3 billion dollars. The business school, TBS Education, in its recent report on the Spanish situation in the field of consumer behavior in banking digitization (eBanking), shows that the annual increase in Spain of searches for financial APP’s in 2019 increased by 9% compared to 2018 and then in 2020 it increased by 56%. In total, searches have increased by 70% in two years, compared to 2018 data.

Besides, current electronic financing can be applied in many economic and labor areas, thus causing a paradigm shift. The Spanish Association of Fintech and Insurtech (AEFI) is confident that the digital transformation of banking will generate around 5,000 jobs. However, the rise of this business model is uneven in the Spanish territory, according to the study carried out by TBS Education.

Benefits of the new alternative payment systems

PayPal It is already, according to company statements, the second most used payment method in Spain, after credit cards. This payment platform, followed by others such as Bizum, Google Pay or Apple Pay, has had a great penetration in the commercial sector, allowing access to services in a faster and more practical way, and within everyone’s reach. Along these same lines, TBS Education shares the main benefits that the booming alternative payment systems have developed:

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  1. Electronic payment systems primarily offer convenience. Avoid lines at the bank for financial transactions or to withdraw cash. It often has a personal online manager, and access to most services is just a click away. You can also link accounts or automate payments.
  2. The security mechanisms of financial apps are safer than credit cards. The payment actions are normally carried out through data such as the telephone number or email, which allows not to give any data related to the bank account. In addition, online payments have security mechanisms that encrypt all transaction data and request direct confirmation from the bank.
  3. As the online payment system is still in its infancy, it currently offers many economic benefits for the consumer. Online operations are already a reality for 8 out of 10 people, according to a study carried out by Mastercard in 2020. However, this is a market that is still making its way between traditional payment methods, it offers economic advantages such as discounts, operations without interest, ease of contracting or payments without commissions.
  4. Payment procedures are faster by having direct communication with online banking. The procedures that can be carried out instantly are the most successful, and in the case of online operations, they have accelerated the purchase, management and payment processes in general, always with validation by the customer.
  5. New payment methods make it easier for us to access international services and the means of liquidation. Currently, the new forms of communication have allowed payment apps to go one step further, and to be able to integrate the different daily activities at any time and place: order food at home, fill gas, pay for parking or pay through alternative places. in stores that do not have POS terminals.

With all this, the use and consumption of digital banking services will continue to grow in penetration in the population and in the coexistence between banking and fintech. Banking and financial services will continue the process of innovation and integration of new payment methods”, adds Edgar Sánchez, collaborating professor at TBS Education in Barcelona and director of the study.

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