Thursday, August 11

What is safer to send money between family and friends: Bizum or Paypal?


If you are thinking of sending money to family and friends, or even making an online purchase, you may be wondering if it is better to use Bizum or PayPal. We solve your doubt.

These two ways of sending money have undoubtedly become the great protagonists of young people and not so young. Fast, simple and safe are just three adjectives that define both platforms.

We recently resolved the question about which is better, Bizum or Transfer. We leave you the link to the news so you can check the winner. In turn, we have also delved into the world of cards, sometimes so complex, and we explain the differences between debit and credit cards.

Well, now it is the turn of two great titans such as Paypal and Bizum. Which is the best of them, is there one that suits you in all cases?

While Bizum is the payment platform between users that emerged from the collaboration of Spanish banking entities, which began operating in 2016, PayPal is an American company for buying, selling and sending money over the Internet founded in 1998 in California.

As we have already anticipated, both are secure platforms, although Bizum is adjusted to the measures of each of the banking entities (usually very safe) and PayPal has your transaction encryption, authentication, and buyer protection.

The only aspect here to highlight is the care you must take if you receive payments from Bizum. Basically make sure you are accepting the payment and not going to send it. There is a scam on this platform through which users who are apparently going to send you money are actually asking you for it.

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Main differences between Bizum and PayPal

Now let’s go with the great differences that we can find between one platform and another, which can help us choose the most appropriate depending on the transactions and conditions.

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The first of all is based on the price of the application. While Bizum is free in most banks, PayPal does not charge commissions for payments between individuals, but it does apply commissions on certain operations, such as instant sending to a bank account (1% of the amount transferred).

If you are the one who is going to receive the money, either option can be just as practical. Here it is up to you and some nuances that we leave you below and that you should take into account.

On the other hand, if you have a bank account in an entity attached to Bizum, everything is ready to use. However, in the case of PayPal, you will have to create an account if you don’t have one, confirm the payment method, verify it… etc. (normal when registering for the first time).

However, Bizum’s great limitation is sending money abroad, so here, the best option is undoubtedly PayPal. Also, this is capable of making payments in different currencies (with a conversion rate) and Bizum only in euros.

However, if you wonder Can I make a Bizum while abroad? The answer is yes, as long as we use our Spanish bank account and the person who is going to receive the Bizum also has a Spanish account.

One of PayPal’s advantages over Bizum is that it allows you not only to send money, but also create a common fundthat is, a joint piggy bank that you can or can use for whatever you want.

If we talk about money transfer limits, Bizum is between 50 cents and 500/1,000 euros for each operation (it depends on the entity, we leave it linked to you) to other users who are registered in the service, with a maximum of 60 operations per day and per month and a maximum of 5,000 euros per month.

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PayPal limits are much higher, and depend on the currency used. For example, in our currency it is currently 8,000 euros per transaction.

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For what circumstances do I use Bizum or PayPal?

Knowing what the advantages and disadvantages of each one are, it is time to know what are the situations in which you will be favored by the use of one or the other.

If you go to send money to your family or friends or you want to share expenses, Bizum is the best for its ability to make and receive immediate shipments to your bank account and free of charge.

If you are going to do many transactions and some of them are internationalPayPal offers you advantages to do it to any country, as well as purchases on the Internet with great consumer protection, as well as the piggy bank that we have talked about before.

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