Bizum in Mallorca: Setting Up and Using Spain's Mobile Payment System

If you live in Mallorca, there's no getting around Bizum: splitting a restaurant bill, sending a deposit to your landlord, quickly transferring 50 euros to a tradesman – it's all done via mobile number, without entering an IBAN, without cash. More than 30 million people in Spain now use the service, which corresponds to around 60 percent of the population. In this guide, you'll learn how to set up Bizum with a Spanish or even a foreign account, what limits apply, how to use it in everyday life and as a self-employed person – and what changed on 1 January 2026 due to the new reporting requirements for business payments — they are now in force.

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What is Bizum and how does it work?

Bizum is a Spanish payment system that has existed since 2016 and is operated by Bizum S.L. – a consortium of more than 30 Spanish banks, including Santander, BBVA, CaixaBank, Sabadell and Bankinter. Unlike card payments, Bizum works as an account-to-account model (A2A): the money moves directly from account to account, without international card networks such as Visa or Mastercard. Technically, the service is based on SEPA Instant Transfer (SEPA SCT Inst) and meets the security requirements of the PSD2 directive, including strong customer authentication (SCA) via biometrics or PIN.

The great advantage: you only need the recipient's mobile number, no IBAN, no cash, no separate app – Bizum is integrated directly into your bank's banking app.

Setting up Bizum: step by step

Setting it up takes just a few minutes and is done entirely through your bank's app – there is no separate Bizum app.

1. Open your banking app and look for the „Bizum" option in the menu (usually under transfers or services).
2. Link your Spanish mobile number, through which you want to send and receive money.
3. Confirm your identity via the usual two-factor authentication of your bank (PIN, fingerprint or facial recognition).
4. Complete activation – Bizum can then be used directly in the app.
5. Do a test run: Send one euro to someone you trust, just to check that everything works.

Note: Without a Spanish mobile number and a Spanish IBAN (ES number), the classic activation won't work. If you don't have a Spanish SIM yet, you should get one first.

Requirements: Spanish IBAN and a suitable bank

Bizum is linked to Spanish bank accounts with an ES-IBAN. If you've just moved to Mallorca and don't want to open an account with a traditional bank yet, there are now alternatives: mobile banks such as N26 or Revolut now also offer Spanish IBANs and fully support Bizum.

You'll find more details on opening an account in the guide Opening a bank account in Spain. If you also need a Spanish mobile number, check out the article Mobile phone contract in Spain.

Limits and fees

Bizum is generally free for private individuals. There's a known standard limit of up to 1,000 euros per individual payment between private persons – this limit can vary slightly depending on the bank and account type, so it's worth checking the terms of your own bank.

Note: For larger amounts (deposit, furniture purchase), don't blindly rely on a flat-rate limit – ask your banking app beforehand about the maximum amount that applies to you.

Using Bizum in everyday life: P2P, online shops and stores

In everyday life on Mallorca, Bizum is mainly used in three scenarios:

• Private payments (P2P): Splitting the bill at a restaurant, paying a deposit to a landlord, transferring money to a flatmate – simply enter the mobile number, set the amount, and confirm.
• Online payments: Many Spanish online shops offer Bizum as a payment option, which can be found via the official directory at bizum.com/es/comercios-online/.
• In-store payments: On site, Bizum works in two ways – via a QR code shown by the retailer, or via a payment link you receive.

In addition, from 2026 Bizum is rolling out a new contactless in-store payment system via NFC, designed to allow direct comparison with Visa and Mastercard payments in shops. The full rollout across banks and retailers is expected to be completed by the end of 2026.

Bizum for self-employed people: what applies from 2026

For autónomos and businesses on Mallorca, one point is particularly important: Since 1 January 2026 an extended reporting obligation for electronic payments has applied in Spain. The legal basis is the Real Decreto 253/2025 of 1 April, which amended the information obligations in the Reglamento General de las actuaciones y los procedimientos de gestión e inspección tributaria (Real Decreto 1065/2007); the change came into force on 1 January 2026. Previously, banks mainly reported larger sums to the tax authority (Agencia Tributaria/Hacienda). For payments related to an economic activity, this minimum threshold no longer exists.

What matters is the type of payment, not the amount: a 20-euro Bizum payment for an invoice falls under the reporting obligation just as much as a 200-euro payment, provided it is connected to a business or freelance activity. Banks transmit the data to the tax authority in aggregated form as monthly totals, not as a list of individual transactions – the aim is to cross-check them against the income declared in tax returns.

Note: Private transfers between family members or friends – such as shared travel costs, a wedding gift or the monthly contribution to a joint household account – are expressly not affected by this new regulation and do not trigger any new tax reporting.

What should you as an autónomo do now, specifically?

If you work as a self-employed person or business owner in Mallorca and your customers pay you via Bizum, a clear structure is recommended:

1. Invoice every business Bizum payment – with a correct invoice including tax details.
2. Separate private and business accounts, to avoid mixing them up and to simplify bookkeeping.
3. Monthly reconciliation: Compare the Bizum totals reported by the bank with your own accounts.
4. Correct declaration of all income in the VAT (IVA) and income tax returns.

You can find more on ongoing bookkeeping and the tax obligations as an Autónomo in the guides Autónomo Spain, Bookkeeping Autónomo Spain and Modelo 303 & 130.

Bizum vs. alternatives for expats

Anyone who doesn't yet have a Spanish account or regularly transfers money from abroad often combines Bizum with other apps.

Most common mistakes when using Bizum

• Collecting business income via Bizum without issuing an invoice – from 2026, this will be flagged to the Hacienda through the monthly reporting.
• Mixing personal and business accounts, which makes reconciliation with the reported bank data more difficult.
• Relying on a blanket limit, without checking the actual terms of your own bank.
• No Spanish mobile number, even though this is required for the standard activation.
• Using Bizum for larger deposit payments, without first knowing your own bank's limit.

What comes next? Outlook for 2026 and beyond

Alongside the tax reform, Bizum is working on a technical expansion: a contactless in-store payment system via NFC, which is being rolled out gradually at banks and retailers across Spain and is expected to be available nationwide by the end of 2026. This positions Bizum more strongly as a direct alternative to Visa and Mastercard payments in physical retail – a trend you as a resident on Mallorca will likely notice in more and more shops over the coming months.

Checklist: Setting up Bizum on Mallorca

• Spanish mobile number obtained
• Spanish account with ES-IBAN opened (traditional bank, N26 or Revolut)
• Bizum activated in the banking app and verified with a test payment
• Researched your own bank's limit for P2P payments
• If self-employed: business account kept separate from personal account
• From 2026: process established for monthly invoicing of Bizum business payments

Conclusion

On Mallorca, Bizum is as much a part of everyday life as the Spanish bank account itself – for split bills, deposits or quick transfers to tradespeople, it's hard to imagine life without it. For private individuals, nothing changes with the new regulation from 1 January 2026: payments among family and friends remain untouched. However, anyone receiving payments via Bizum as an Autónomo or business owner should start invoicing properly and keeping accounts separate right away, as the monthly report to the tax authority makes every business Bizum payment visible – regardless of the amount.

Official sources

• Bizum S.L. – official information on reporting obligations: https://bizum.com/es/en/blog/bizum-hacienda/
• Bizum S.L. – directory of online retailers: https://bizum.com/es/comercios-online/
• Boletín Oficial del Estado (BOE) – Real Decreto 253/2025: https://www.boe.es
• Agencia Tributaria (AEAT) – official Spanish tax authority: https://www.agenciatributaria.es