Spain
Spain, a developed country in the European Union (EU), has a highly diversified and industrialized economy, with strong sectors in manufacturing, services, and digital infrastructure. The country has emerged as a leader in digital transformation, with a robust online payment system, digital banking, and advanced digital payment providers that support its economic ecosystem. Despite economic disruptions caused by the COVID-19 pandemic and the Russia-Ukraine war, Spain is expected to experience moderate economic growth in 2024, bolstered by its innovative financial technology (FinTech) landscape.
In 2023, Spain's real GDP grew by 2.5%, driven by a robust labor market, strong domestic demand, and the increasing adoption of digital payment solutions. Major online payment providers have significantly contributed to the country's economic resilience, facilitating seamless digital transactions across various sectors. The Spanish economy is projected to grow by 2.1% in 2024 and 1.9% in 2025, supported by domestic consumption, investments under the Recovery and Resilience Plan (RRP), and the continued expansion of its digital payment infrastructure.
Inflation in Spain is projected to decrease from 3.4% in 2023 to 3.1% in 2024, and further to 2.3% in 2025 as energy prices stabilize and underlying price pressures moderate. The unemployment rate of 12.2% in 2023 is expected to decline to 11.6% in 2024 and 11.1% in 2025, partly supported by the growing digital economy and innovative payment systems that create new economic opportunities.
Spain's fiscal deficit is anticipated to decrease from 3.6% of GDP in 2023 to 3.0% in 2024 due to the phase-out of energy-related subsidies and favorable revenue developments. The country's advanced online payment providers and digital financial infrastructure have played a crucial role in improving economic transparency and efficiency. The debt-to-GDP ratio is expected to gradually decline, reaching 104.8% in 2025, reflecting Spain’s strategic approach to economic management and digital transformation.
Top banks
Santander
As one of the largest banks in Spain, Santander offers a wide range of financial services to individuals and businesses.
BBVA
BBVA (Banco Bilbao Vizcaya Argentaria) is a global financial group headquartered in Spain, founded in 1857. It is one of the largest banks in the world, operating in over 30 countries, including Portugal. BBVA offers a range of services, including retail banking, corporate banking, investment banking, and wealth management. Known for its focus on digital transformation, the bank provides advanced online and mobile banking services. BBVA is also committed to sustainability, integrating environmental, social, and governance (ESG) factors into its operations. It is regulated by banking authorities such as the Banco de España and Banco de Portugal.
CaixaBank
CaixaBank is a significant player in the Spanish banking sector, offering various financial services and maintaining a strong market presence.
Bankia
Bankia offers a variety of banking and financial services, focusing on both retail and corporate clients.
N26
N26 is a German digital bank founded in 2013, operating entirely online without physical branches. Known for its user-friendly mobile app, N26 offers a range of financial services, including checking accounts, savings tools, personal loans, and insurance. The bank focuses on simplicity, transparency, and ease of use, providing customers with a seamless mobile banking experience. It operates in multiple European countries and the United States, and is regulated by financial authorities in each region. N26 is particularly popular for its low fees, international money transfers, and innovative features like real-time notifications and spending insights.
Top payment methods
Mastercard
Mastercard is a global payments leader, dominating the co-branded card market in Europe and key countries like Brazil, Canada, and Germany. Known for secure, contactless, mobile, and digital payment solutions, Mastercard drives e-commerce, fintech, and online banking innovation worldwide.
Visa
Visa is the world’s largest global card network by transaction value, accepted almost everywhere. It’s known for secure, fast, and reliable payments, positioning itself as “the best way to pay and get paid by everyone.”
Paybybank
At checkout, when you choose Pay by Bank as your online payment method, you will be asked to select your bank, which then creates a secure payment link to authorize your transaction. Once the payment is authorised, you are redirected back to the checkout page. No card details are needed, there’s no need to create an account, and no personal financial information is shared.
This digital banking payment solution is offered by PayOp, covering almost all of Europe and competing with top online payment providers in the e-commerce and fintech market.
ApplePay
Google Pay
Google Pay enables secure digital payments using stored credit or debit cards for online, in-app, and in-store purchases. It offers a fast, seamless checkout experience on Android devices and supports 3D Secure authentication for EU and UK-issued cards.
Concluding remarks
The Spanish economy is poised for recovery, supported by a diverse payment landscape and a robust financial sector. As the country navigates through economic challenges and embraces technological advancements, its payment methods reflect a blend of traditional and modern approaches, catering to a wide range of consumer preferences.
Cash (Efectivo)
Cash remains a widely used payment method in Spain, especially for smaller transactions and in rural areas. Despite the rise of digital payments, cash continues to play a significant role in the economy.
Credit and Debit Cards
The use of credit and debit cards is extensive in Spain, with major card networks like Visa, MasterCard, and Maestro widely accepted. The adoption of contactless payment methods has been particularly strong, driven by convenience and technological advancements.
Bank Transfers (Transferencias Bancarias)
Bank transfers are commonly used for larger transactions, such as rent payments and business dealings. SEPA (Single Euro Payments Area) transfers facilitate cross-border payments within the Eurozone, as Spain uses the euro (EUR).
Mobile Payments
Mobile payment options, such as Apple Pay, Google Pay, and local apps like Bizum, are gaining popularity. These methods provide a convenient way to make payments using smartphones and other digital devices.
Online Payment Platforms
Platforms like PayPal and PayU are widely used for eCommerce transactions. These platforms offer secure and efficient ways to pay for goods and services online, supporting the growth of the digital economy.
Prepaid Cards
Prepaid cards are popular among younger individuals and those who prefer not to use traditional banking services. These cards can be used for online shopping and everyday purchases.
Cryptocurrencies
Cryptocurrencies are slowly being adopted, particularly among tech-savvy individuals and businesses. The regulatory environment is evolving to accommodate the use of digital currencies, though widespread acceptance is still developing.
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