Spanish Payments Chaos: Amid recent disruptions to Spain’s payments network, the Bank of Spain has taken a keen interest, seeking detailed information on the incidents. Redsys, the largest payments platform in Spain, experienced crashes just ahead of Black Friday, a crucial period for commercial activities. The Bank of Spain, in collaboration with the government, is closely monitoring the situation, though no formal case has been opened against Redsys as of now.
Redsys, owned by major Spanish banks including Santander, BBVA, and Caixabank, acts as a crucial intermediary in the country’s electronic payments landscape. Handling more than 45 million payments each month, Redsys ensures the security of transactions between banks, shops, and buyers.
The disruptions, which occurred on November 18 and 23, led to complaints from customers about failed ATM withdrawals and credit card payments. Redsys responded by attributing the disruptions to internal communication issues, ruling out external attacks. Despite resolving the incidents and restoring services, the disruptions have prompted both the Bank of Spain and the government to delve deeper into the matter.
Sources close to the central bank clarified that no formal case has been initiated against Redsys, but the Bank of Spain is actively seeking comprehensive information to understand the root causes and implications of the disruptions. Simultaneously, the Spanish government is also conducting its own inquiry into the matter, signaling the seriousness with which the authorities are treating the incidents.
Also Read: Spanish YouTuber Sparks Legal Battle Against Google in Pioneering Employment Dispute
Redsys, as a pivotal player in Spain’s electronic payments ecosystem, holds significant sway over the smooth functioning of transactions. Owned collectively by major Spanish banks, any disruptions in its services can have far-reaching consequences for the financial system. The incidents have raised concerns about the reliability and resilience of Spain’s electronic payments infrastructure.
The company, in response to the disruptions, stated that the technical incidents on both days were one-off occurrences and independent of each other. Redsys emphasized that this was the first time such incidents had occurred in the more than 12 years of its service in Spain. According to Redsys, the disruptions affected 2.5% of electronic payment transactions on the day of the first incident and 1.7% on the day of the second incident.
These disruptions highlight the increasing reliance on electronic payments in Spain and the potential risks associated with any disruptions to the seamless functioning of these systems. As the investigation unfolds, stakeholders, including the Bank of Spain, the government, and Redsys, will be closely observed for their responses and the measures taken to prevent future occurrences.
Our Reader’s Queries
What method of payment do Spanish use?
Although digital payments are gaining popularity in Spain, traditional payment methods such as credit cards, debit cards, and cash still reign supreme. To stay ahead of the competition in the Spanish market, online businesses should offer a range of digital payment options, including credit and debit cards, BNPL, and digital wallets. By doing so, you can cater to the diverse payment preferences of your customers and ensure a seamless shopping experience.
What is the payment system in Spain?
The payment system in Spain is divided into two parts: TARGET-Banco de España, which handles high-value payments, and the National Electronic Clearing System (SNCE), which is responsible for low-value payments.
Is it better to use cash or card in Spain?
Paying by card is widely accepted in Spain, even in remote coastal villages. However, some small transactions under 10, such as those at tobacco shops or bus recharge spots, may require cash. It’s always a good idea to have some cash on hand just in case.
Is Spain cashless?
Cashless transactions are widely accepted in Spain, where credit cards reign supreme. This is especially true in popular tourist destinations like Madrid, Barcelona, San Sebastián, and Ibiza. These areas are generally very accommodating to credit card users, making it easy to go cash-free during your travels.