About payment methods
Today we are going to talk about payment methods, money and Bizum.
Fact is, that there are more and more payment options available every day. In our FAQ section you’ll see the different kind of payments that are accepted at iBlevel. Visa, Mastercard, PayPal, bank transfers, account deposits and Bizum. You’re surely familiar with the first five options, but might not be up to date about Bizum. A fairly new option. We will explain a little more about this service in this post.
But, do we even need all these options? We believe so, yes. These options are available for a reason and were designed to be used. Therefore, why not offer each client the formula with which they feel most comfortable?
Trusting the supplier is the basisline of the e-commerce. If you don’t feel comfortable or safe buying at store X, you certainly won’t do so.
Trusting the supplier is the basisline of the e-commerce. If you don’t feel comfortable or safe buying at store X, you certainly won’t do so. However, if you are provided with the tools and conveniences that you are familiar with, than it’s another story, right?
So, the real question is, how have we ended up with all these innovative payment methods? Where did it all start? Well, to find out we are going to jump into our time machine and take a brief tour through the history of money.
… wait. You’re not interested in history? Okay then! Get of the machine and head straight to the “About Bizum. A freshly squeezed payment method“.
About money. A little history
Money hasn’t always existed, althought it has been amongst us for many centuries.
The most primitive economies used the non-monetary exchange system to acquire the necessary goods for their survival. A cow in exchange for ten chickens, for example. But the rapid growth and complexity of societies forced our ancestors to introduce the division of labour into the existing society model. This meant more production and the begining of the supply chain. And it was also the end of self-supply. People became dependent on each other.
These changes inevitably lead to the development of the exchange system. Bartering meant that one part had a good that the other part wanted or needed and viceversa. Besides, the value of these goods needed to be balanced. Sounds logical, practical. But this could become complex: What value is assigned to each item? What is a fair barter? What if no one wants my goods? Do I even have enough goods? How do we transport these goods?
So, to address these difficulties, they explored other more efficient payment methods. For example, corn, a valuable commodity although with the disadvantage of perishing quickly. Or salt (hence the origin of the term “salary”), with the disadvantage that when it god wet it lost all its value.
What happened then?
After that, some alternatives emerged, concretely: gold and silver. Easy to transport, durable and valuable. Right?
But, these materials also had their drawback. Large bags were needed to carry big amounts of these heavy metals. Therefore, they were no longer so easy to transport. In addition, crime was a huge problem back then. And there was always the fear of being victim of theft.
Therefore, what was the ultimate solution? Indeed, the emergance of banks.
Back then, the goldsmiths held safety deposit boxes where they kept their precious metals protected by guards. The perfect location to store money. So this idea evolved and they began to issue money in a material that was neither gold nor silver. Initially these were certificates attesting to the possession of certain amount of money. Again, easy to transport and under the protection of bankers.
With time, this concept would evolve into paper money, or what we now call banknotes.
Finally, one last curiosity to end this history lesson; Bankers realized that their customers never went all at once to withdraw their money, so there was always a surplus. And what did they do with this surplus? They transformed it into loans and mortgages.
But, it’s time to leave behind the cows, the bags of gold and bank certificates to return to the 21st century and talk about Bizum.
About Bizum. A freshly squeezed payment method
Literally everyday new Apps are invented to meet all kinds of needs. This is not the case with Bizum. Not exactly anyway, since Bizum is not an App.
It’s a service integrated in each bank’s application. It allows to request and receive money between to parties. This payment method is instant and secure. To use it, you must link your bank account to your phone number, similar to PayPal who links your bank account to your email. Basically it’s a wallet in your smartphone. You can already pay with your smartphone in person, now you can also do so remotely thanks to Bizum.
There are two ways of requesting or sending money. You can send money to anyone you have listed in your address book on your smartphone. For this option you will need to allow the bank app to access your contacts. If you don’t want to do this, you can also enter the phone number manually. Then you add the amount of money that you want to request or send, a subject or note and that’s it.
However, in order to use this service both parties need to be registered with the Bizum service.
Is it better to use Bizum rather than a regular bank transfer, which, in fact, can also be done from your smartphone?
Well, that depends on your personal preferences. With Bizum you don’t need an IBAN and as you can see, it’s quite fast and intuitive.
I’ve read that this payment system is only for personal transactions. Does this mean that it’s not valid for online shopping?
Yes, yes it is. In order to pay your online purchases with Bizum you just need to indicate your phone numer to the supplier and validate the operation.
Are the payment amounts limited?
Yes, but this varies from bank to bank, depending on their own terms.
Is this really a safe payment method?
As said before, this is an integrated service within each bank’s own App. Therefore, paying with Bizum is as safe as any other online banking service that your bank offers you.
Does my bank work with this Bizum service?
Most banks have signed up for this service. Nontheless, to know for sure you better visit your banks website to check.
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