According to the Bank of Spain, in the first half of 2024, card payments accounted for 64.2% of all transactions made without cash, a 2.6 % decrease from the same period in 2023 (66.8%). A similar trend occurred at brick-and-mortar stores, where card use also decreased from 32% to 30%.

Over time, the variety of alternative ways to pay has been growing, with device payments leading this trend. In 2024, more than a third of Spanish customers under the age of 25 (35%) and over a quarter of those between 25 and 34 years of age already considered it their primary method of pay, surpassing those made with a physical card. Let’s examine the various options available, the benefits they offer, and how to integrate them into your business.

What’s in this article?

• What are non-card payments?
  
• What kinds of non-card payments are there?
  
• What benefits do non-card payments offer companies?
  
• How to implement non-card payments in your business
  
• FAQs about non-card payments in Spain
  

What are non-card payments?

Non-card payments involve moving funds without using a physical debit or credit card. In addition to traditional options—cash being among them—we also find electronic money transfers in this category, including SEPA transfers and technological tools such as digital wallets.

What kinds of non-card payments are there?

Non-card payments fall into several types, available for both physical and ecommerce stores.

Let’s take a look at the features of each one:

• Digital wallets: E-wallets, or digital wallets, are applications that allow you to pay via the internet without having to enter your card information. They can also be used in brick-and-mortars from a mobile device that has NFC technology, provided the payment terminal is compatible. Users can store cash in the form of digital credit or their card info in their mobile wallet. In both cases, users can complete transactions without needing a card by using digital wallets such as Apple Pay, Google Pay, and PayPal. This non-card method represents 29% of all online transactions.

• SEPA transfers: Money transfers between SEPA zone countries enable non-card settlements through funds being sent from customers to company bank accounts. Before the European Union adopted Regulation 2024/886, you had to pay an additional amount to avoid long SEPA transfer processing times. However, it is now possible to arrange instant transfers in Spain without incurring any extra fees beyond the standard charge. Given the faster processing and lower costs than cards, they remain the go-to option for larger sums and, in the first half of 2024, represented 88.4% of the total amount of payments made with methods other than cash.

• Bizum: Integrated into online banking applications, Bizum allows account holders to send and receive money in Spain instantly. The Bank of Spain reports that Bizum reflects 95% of instant transfers nationwide.

• SEPA Direct Debits: In contrast to SEPA transfers, in which the payer initiates the movement of funds to the recipient, with direct debits, the customer authorizes the company to withdraw the purchase sum from their bank account. Since that authorization is reusable for multiple payments, SEPA Direct Debits are ideal for organizations with recurring revenue models.

• Deferred payments: Deferred payment lets shoppers complete a purchase now and settle the amount later. They can either pay in full at a future date or split the cost into an installment plan, as with “buy now, pay later” (BNPL) services. This option already accounts for 5% of web purchases in Spain, with Klarna, seQura, and Alma among the most popular providers.

• Cash: The last non-card option we planned on mentioning is cash, which, unlike most alternative payment methods, does not rely on the use of technological solutions. According to the Bank of Spain, it remained the primary means of settlement for nearly 60% of shoppers in 2024. Although hard currency remains highly prevalent throughout the country, many stores prefer to encourage digital payment systems, among other reasons, to avoid the cash limit in Spain. While banknotes and coins are mainly used for face-to-face purchases, they are also suitable for web sellers that accept cash on delivery.

What benefits do non-card payments offer companies?

Here are some of the most important benefits for companies that decide to support non-card options:

• Lower fees: Payment providers typically charge fees for card processing. In Spain, these costs tend to be considerably higher for international cards. On the other hand, the price for initiating a SEPA Direct Debit is often fixed (usually less than a euro) rather than a percentage fee, and local payment methods—such as Bizum for companies—typically have very low charges.

• Fewer abandoned carts: Entering card details can prompt the shopper to abandon their cart. Moreover, 86% admit to abandoning a purchase if their go-to payment method isn’t available. In Spain, 38% of customers report that Bizum is their top choice.

• Improved brand image: Accepting non-card settlements reinforces the brand image and positions the company as a modern business that offers the most advanced technical solutions and listens to their customers’ preferences.

How to implement non-card payments in your business

To enjoy these perks, you must implement non-card payment options. The necessary platform or tool varies depending on the nature of your business, whether it is by web or face-to-face.

How to accept online non-card payments

Integrate a payment gateway that handles non-card alternatives. For example, Stripe Payments lets you enable more than 100 ways to pay with just a few clicks from the Dashboard. In addition to the main card networks, you can support dozens of non-card methods, including transfers, SEPA Direct Debits, digital wallets, BNPL, and many others.

How to accept face-to-face non-card payments

If you also sell products or services at a physical store, combine web and in-person settlement through Stripe Terminal, which also handles the most popular non-card option in Spain: e-wallets.

Cash payments do not require a technological solution as such, but it will be necessary to record them in your point-of-sale (POS) system to ensure compliance with your tax obligations, such as submitting the quarterly value-added tax (VAT) return.

FAQs about non-card payments in Spain

Is it mandatory to accept non-card payments in Spain?

The only payment that is mandatory to accept in Spain is cash. As long as the sale amount is under €1,000, stores are obligated to take hard currency, as specified in Article 47 of the General Law for the Protection of Consumers and Users.

What is the maximum amount that can be paid without a card?

The limit varies depending on the method of pay and, in some cases, the bank. To illustrate, the maximum Bizum amount for online purchases is €1,500  at CaixaBank, but €15,000 at Banco Santander. Additionally, cash payments must be less than €1,000, as stipulated by the Anti-Fraud Law.

Are non-card payments secure?

Non-card options share many of their security measures with card payments and sometimes add extra layers of protection. For instance, digital wallets utilize tokenization systems to encrypt data, whereas other methods, such as Bizum, employ biometric payment tools to verify the identity of the person requesting the money transfer.