VLEUTEN | One of the major Dutch banks, Rabobank, has updated its iOS and Android apps to optimise mobile checkout using payment method iDeal. Mobile and tablet shoppers having installed the bank's online banking app are now able to check out using the most popular payment method in the Netherlands.
Seamless iDeal mobile checkout
As soon as a consumer selects iDeal as payment method on their mobile or tablet, they are automatically redirected to their familiar Rabobank app. Competitor ING Bank is assumed to work on a similar Mobile iDeal checkout. The purchase amount and other checkout details appear pre-filled and payments can be made within just a few clicks or touches.
No need for authentication
The bank offers their customers the option to limit the iDeal purchase amount and to pre-determine to whom these iDeal payments can be made, without the need for additional authentication. Up till now, consumers had to use an authentication device, so-called random reader, to complete their iDeal payment. Despite the lack of hard evidence, it is more than likely to assume that the need for authentication using a random reader has had a negative impact on mobile payment convenience, conversion rates and the growth in mobile commerce in general. Now, at least for Rabobank clients, shoppers would only need to login to their banking app using their personal 5 digit passcode and confirm payment.
The launch of this new in-banking-app payment service was long expected by all ecommerce minded people in the Netherlands. iDeal is the most preferred online payment method by both consumers and merchants. Research by consultancy BrandAsset has identified it as country’s strongest financial brand for the second year in a row.
Preferred Online Payment Method in the Netherlands
iDeal payments, basically an online bank transfer, originate from the trusted and familiar online banking environment of the shopper. Merchants benefit from fixed, relatively low fees per transaction and there is no chargeback mechanism. The lack of a simple and easy-to-use iDeal checkout for mobile and tablet purchases did hold back the growth in mobile commerce for Dutch (oriented) online merchants.
Currence, owner of the iDeal payment method, reported a growth of 25% for last year, resulting in 117 million iDeal payments. For this year again an increase of around 22-24% is expected. Especially now the Rabobank, servicing a large trunk of the Dutch people, improves the iDeal mobile checkout experience, it is more than likely that records will be broken. About-Payments predicts for the full year of 2013 around 145 million of iDeal transactions processed.
ING and ABN Amro to follow
ING says it plans to introduce a similar functionality on both iOS and Android mobile payments next month, according to spokesman Ronald van Buuren. ABN Amro, the third bank in the Netherlands, is also working on an iDeal in-app integration, however has not yet announced when it will be introduced.