Financial Dictionary - Bizum
Bizum is an application used to send and receive money instantly between individuals using a mobile phone, without cost or commission. Because transfers can be made so conveniently, quickly and safely, it has become almost an overnight success.
When making a transaction, you enter no account number or IBAN code. Once you have associated your bank account to your phone number, you simply enter the contact number of the recipient, as if it were a mere text or WhatsApp message, and they receive the money in the account linked to their phone number.
This application arose in 2016, when several banks decided to join together to gain ground against other fintechs on the market. Today, there are a total of 26 banks operating with this app, each from its own iOS and Android compatible application. To activate it, just download your bank's app, which will be compatible with it.
Nowadays, this type of exchange is being increasingly used, especially since the pandemic started, as people continue to use less cash. In addition, it is a very convenient tool to make group payments or share expenses: Make a joint gift, pay in a restaurant or make any small transfers; in fact, any amount between €0.50 and €1,000 can be transferred to up to 30 recipients at a time; Practically, the only requirement is for both sender and receiver to have the app. Additionally, this app can now also be used to pay at online shops and restaurants, and even to donate to NGOs.
Can Bizum be linked to two different accounts?
No, the application works with a single account only; although you can change this account as many times as you like. this way, it will be linked to one account number or another and to one IBAN or another.
However, it does allow a SIM card to be added to your phone, so there are two numbers on the same phone. In this way, you can indeed have two accounts, with each assigned to a different number.
Change the Bizum account entity
To register your app in another bank and keep your number, simply cancel it at the first and open it at the second. Changing accounts within the same bank is also possible. Simply go into your bank's app, then the Bizum section and enter your mobile number in the new account.
Associating two numbers to the same Bizum account
This is useful for a shared bank account, for example. So, for example, if you share an account with your partner, you can both register by linking both numbers to the same account.