Digitization of payments in Spain: challenges and opportunities

Payment Digitization Report in Spain 2021

This report from the Payment Innovation Hub and Afi, in collaboration with CaixaBank, Visa and Samsung, seeks to open a dialogue on the design of public policy initiatives that promote the adoption of digital payments in Spain, as well as detect the challenges and opportunities offered by the transition from cash to digital payments.

As an innovation center, at Payment Innovation Hub we promote research and R&D projects around payment methods together with our network of partners (CaixaBank, Global Payments Inc., Visa, Samsung and Arval). We believe that payment services are an essential link in the infrastructure that energizes our economy. For this reason, we have analyzed and compiled evidence by analyzing the impact of policies carried out in other countries to model a guide of suggestions on how the Government and legislators can support the digitalization of payments to benefit the country’s economy.

To contribute to the joint action of public authorities, financial institutions and payment systems, we have modeled a proactive roadmap with the aim of facilitating the transition from cash to digital payments. The first block of the study analyzes the impact and opportunities derived from the measures adopted in other countries to reduce the use of cash and improve the adoption of digital payments to facilitate the country’s economy. Then, in the second block, the main payment and collection methods enabled by the central Administration, the autonomous communities and local authorities are analyzed with the aim of identifying opportunities that guarantee the universality of payments in the public sector.

Through the study, we provide references of public policy actions that can be adapted in Spain, as a guide to promote a modern, secure and efficient digital payments ecosystem. These proactive measures inspired by international best practices contribute to the definition of a roadmap to accelerate the progress of digital payments. Furthermore, this report sets the main guidelines as a framework for action in which progress must be made to consolidate digital payment in all public administrations within the framework of the digital reform to promote innovation in the public sector.