Applications for payments between individuals

A birthday present for a friend, the taxi back home, what you lent to a co-worker because you forgot your wallet ... Who has not happened to you that a friend or relative owes you a small amount of money whose Payment just dissipating in the air?

These small debt situations (which we owe or owe) may end up becoming, in the long run, uncomfortable. One solution for these types of problems that are gaining more followers are the applications that allow small transfers of money between individuals in a simple and direct through the mobile.

No more excuses like "oh, I'm not wearing it now" or "Oh, I have no change", because with the applications we are going to see below you can pay and request the amount of money you want , However minimal, instantaneously.

Bizum, the banking app

Applications for payments between individuals
Image taken from Bizum's official website
Until 2016 each bank had a more or less complete app that allowed the transfer of small amounts of money among users of the same entity. However, with the release of new apps and platforms that allow payments between users of different banks without having to pay commission, the sector has had to put the batteries and reinvent itself. As a result, the 30 leading Spanish banks have joined together to create Bizum.

The app allows customers, as long as they are from one of these 30 banks, can make transfers between them for free and instantly. It is important to note that Bizum really is a platform or payment service, which you will find in each bank's own app.

The overall performance of the 30 apps is similar. In all of them we must configure Bizum with our data. Once we choose the account from which we want to operate, we must select one of the two options on the initial screen: send or request money and choose the contact from our calendar, which will already be connected to the application. The communication will be direct with contacts who already have an account, while those who do not use it will receive an SMS with a link inviting them to install this service.

At the moment all the banks have announced that the service will be free during the first year, although they are reserved if they will apply later commissions. Generally, it is allowed to transfer amounts between 0,50 € and 500 €.

Twyp, another banking option

Applications for payments between individuals
Image taken from Google Play
Although Twyp has been developed by ING Direct, all users can use it independently of the bank where they have the account. Of course, one of the main disadvantages of the application is that the transfers that are made to people who do not have their account at ING will arrive within 24 hours.

The configuration process is the same as Bizum. We simply have to enter our data and synchronize the application with our contacts agenda. Instead, as the main difference, to start using the app we must first recharge it using a bank card and the money will reach Twyp instantly. We can recharge it as many times as we want and make transfers of up to 1,000 euros per year to the same person. At the moment the Twyp service is only available to operate between Spanish and Dutch accounts.

This is generally a good application, although the fact that transfers to non-ING accounts take 24 hours and that we have to make a transfer of our card to the app before, delay the service and place it in Worse position than Bizum.

We should not confuse Twyp with TwypCash that, despite not entering the group of applications for payments between individuals, deserves a special mention. This application, which was launched just a few months ago also by ING Direct, allows you to withdraw cash in different establishments like supermarkets or gas stations without commission, as long as a purchase is made.

Circle, the international pioneer

Circle was one of the first apps to provide this service internationally and quickly achieved great success, especially among young US audiences. For that reason, already had great international fame before its Spanish release last year.

Applications for payments between individuals
Image taken from Google Play
Circle works much like Twyp and Bizum. The first thing we must do is configure our account by entering the basic personal data. Once configured, as in the case of Twyp, we must also recharge the application through a bank card to have money with which to operate.

The main novelty of this application is that, unlike the previous two, transactions are done through email, so we will only need "sensitive" banking data to recharge our account. This feature will allow to make "boats" half way very simply. In addition, the application has an internal chat through which we can talk to our contacts without needing to use WhatsApp or other messaging apps.

The main advantage of Circle is that both sending and requesting money, including international transfers between individuals, are totally free. However, in return, the movements from our account or bank card to the application do have a commission, 0.3% of the amount.

Verse, the Catalan creation

Applications for payments between individuals
Image taken from Google Play
Send money as the one who sends a WhatsApp message, this is the goal of three young twenty-year-olds from Barcelona who have developed Verse.

The operation of the application is basically the same as Twyp and Circle. We will also have to recharge it by card or bank account to send and request money from the contacts in our agenda.

At the moment, transactions are possible between customers of the top 10 Spanish banks and money arrives instantly. Therefore, we might consider being halfway between Bizum and Twyp. While it is true that it has fewer entities than Bizum, it is expected that the service will remain free. In front of Twyp, it has more banks and, in addition, the transactions are instantaneous, with no need to wait 24 hours.

Like Circle, Verse has an internal chat and also allows the transfer of money internationally, although in this case yes you will be charged a small commission.

In the market there are other applications and platforms that also allow transactions between individuals with a similar operation as above. I pay, Yaap Money, Cashcloud, Paypal, Venmo ... The security of the transactions we carry out through these applications must still be improved. And is that payment through mobile phones is more susceptible to hacking than credit cards, so it is a point where there is a lot of emphasis. Frequently updating software, avoiding third-party download sites, paying attention to permissions, and avoiding the use of free wi-fi networks are tips you should keep in mind to keep your mobile protected.

What is clear is that there are many apps that begin to dispute the parts of the same cake, the payments between acquaintances taken to the mobile phone and without having to pay commissions. We will see if they finally settle and end up prevailing against the service of banks and traditional credit cards.