We are going to talk to you about the main differences between Bizum and PayPal when sending money to another person. These are two services with different purposes, but both offer options to be able to send money to your friends. We are going to focus on the differences that they have in this specific context, that of sending money to another person, so that you can choose the best way to do it with your friends.
We are going to start by explaining what exactly Bizum and PayPal are, in case you still don’t know them. And then we’ll go on to tell you their key differences when sending money to your friends.
What is Bizum?
Bizum is a system for sending money between individuals, an alternative to sending money through your bank that has the peculiarity that the money arrives at the moment regardless of your bank or the other person’s.
It is a system integrated directly into the application of each bank, so you don’t need to download any app to use it. It is supported by most Spanish banks, and it is completely free. The transfer limits are set by each bank, although they are usually between 0.50 and 150 euros.
Bizum can only be linked to one bank account, and one phone number per account. When sending the money you only need to know the phone number of the other person, and decide how much to send. In general, when you do the process in your bank’s app, you can use your phone’s agenda.
What is Paypal
PayPal is an online payment system, created as an intermediary between your bank card and the online store where you make the purchase. In this way, the purpose is you do not need to give your bank details to make online paymentsand that you do so with greater security.
This service requires you to sign up for it, and then you can link one or several accounts or bank cards. When paying, you can decide what to do it with. You can make online payments to any entity or store that integrates the option to charge by PayPal, and offers extra advantages and insurance to recover the money in case of fraud.
PayPal also has a system where you can send money to other people. To do this, you will need to know their email address, or that these people have a PayPal.Me account, which is like an online identity to which you can request or send money. PayPal also does currency conversions when sending money to other people, being able to send someone abroad and receive it in their currency.
Differences when sending money to friends
Although they are services with different purposes, Bizum is only for sending money to people while PayPal is for making all kinds of online payments, in both cases you will be able to send money to a friend, family, or whoever you want. However, there are some fundamental differences.
The main one is that PayPal requires you to sign up for the service creating a user account and downloading your app to your mobile or using your website, and that you do a series of steps to validate this account. While, You activate Bizum directly from the app that you already have from your bankyou will not need to download anything else or register anywhere else.
Another difference is in the data you have to know about this person. In Bizum you only need to know their phone number, thinking about being able to use it for people you already know and are on your agenda. in PayPal you can also use their email in addition to the phone numberand may even have a web address to send the person to request payment or do it yourself.
In both cases, sending money between individuals is instant and without commissions, so the mechanics are similar. Perhaps another difference is that You can only use Bizum in Spainwhile with PayPal you can send money to friends who are in other countries, as long as it is a country that supports this service.
Which one should you use?
If you are going to send money to someone who is outside of Spain, the solution is easy, you will have to use PayPal. Meanwhile, to send money to someone you are physically having dinner with or doing whatever, then either option can work. Partly, it all depends on the other person and what service does she use.
Bizum is simpler and more accessible, and you do not need to register anywhere. You will simply have to activate it in the application of your mobile. This can cause there are more people who are encouraged to use it as it does not need as much complication as PayPal, so it can be a very efficient payment system.
In both cases you will be able to use the agenda of your mobile, which is fine. But in case you do not want to give your phone number to this personthen PayPal gives you the option to use an email, which is perhaps a little extra privacy.
In my particular case, with close friends who are not so involved in the technological world, I usually use Bizum, because it is what they all have. In the meantime, perhaps PayPal is aimed more at an audience that makes online purchases, so many may consider that it is not worth getting involved with.