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Friday, February 07, 2025
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Alternative Payment Methods on the Rise in Spain | Pay It Forward with Miravia (Alibaba Group)

The payabl. Pay it Forward podcast is back and this time we spoke to Julian Capote from Miravia, part of the Alibaba Group, to find out how this young ecommerce company is meeting changing consumer preferences in Spain.

Their innovative approach involves offering diverse payment options, including an integration with Spain’s largest peer-to-peer payment method, Bizum, and value added services like cashback.

It’s all in service of creating a seamless e-commerce experience, and we hear about this and much more in this great episode of the podcast.

Read on to find out more.

Ecommerce Growth in Spain

Capote, who is Head of Payments and Fintech Partnerships at Miravia, a company within the Alibaba Group, shared a number of insights on his role and the company’s strategic view of payments. The interview took place at MPE in Berlin, in the payabl. booth.

Miravia is a new e-commerce business launched in Spain in December 2022, and according to Capote, has experienced rapid growth so far. Capote emphasizes the importance of offering multiple payment options to guide customer interactions and facilitate seamless transactions, noting the necessity for businesses to adapt to changing consumer preferences by offering secure and convenient payment methods. Offering APMs is becoming a global trend and it’s heartening to see it being adopted in Spain also.

Of course, there are a number of considerations to make. In the interview, Capote also highlighted three fundamentals that companies must consider when integrating new payment methods: coverage, customer experience, and audience targeting. Coverage involves onboarding payment methods with significant market share, while customer experience focuses on facilitating a smooth payment process. Targeting the right audience means providing the payment methods they prefer. As an example, he mentioned the successful launch of Spain’s largest peer-to-peer payment method, Bizum, which saw a significant shift of users from traditional payment methods to Bizum, especially after a collaboration with neobank N26.

The future of payments includes value added services

Increasingly we’re seeing more and more value-added services in payments, something Capote discusses here. He described these as solutions that go beyond the payment itself, benefiting the end user. Possible features like instant payment discounts and cashback opportunities from bank partners, can enhance user satisfaction and engagement. They can influence positive user behavior but also increase market share for partners within the payment ecosystem.

Capote noted that while monetization of value-added payment services is not the main priority, delivering value to users ultimately impacts the company’s profitability. BNPL also gets a mention and he cites the increasing popularity of “Buy Now, Pay Later” (BNPL) services among younger audiences, who are less familiar with credit cards. Although the penetration of BNPL in Spain is relatively low compared to other European countries, he sees significant potential for growth due to the preferences of Gen Z and millennials.

Partnerships with other payment companies are also crucial for creating a best-in-class service for Miravia and Alibaba, Capote explains. E-commerce platforms excel in operations but rely on payment companies for expertise in payments. Collaborations with payment partners can increase acceptance rates, reduce chargebacks, and improve operational efficiency. These partnerships also enhance customer experience by offering exclusive benefits and create opportunities for growth and additional revenue streams. Miravia has established partnerships with companies like N26, Klarna, and Bizum to deliver benefits such as cashback, discounts, and flexible payment options, integrating these into their loyalty program.

Watch the video above to find out more and be sure to check out the rest of the Pay it Forward series.

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