AMSTERDAM | iDEAL, the popular Dutch online payment method, continues its success by exceeding 40 million iDEAL payments in one quarter (January to March 2014). Compared to last year an increase of 24%, slightly above the growth percentage for 2013 (+22%). iDEAL seems to gain more traction.
iDEAL 2014 outlook
Major banks in the Netherlands have optimised the way consumers can checkout using iDEAL on their smartphones or tablets. The simplified iDEAL checkout is assumed to further boost mobile shopping and the number of iDEAL payments. The number of payment service providers processing iDEAL payments also continues to grow. More and more cross-border operating ecommerce businesses wanting their share of the Dutch ecommerce market realize they need to accept iDEAL in their webshop to optimize conversion. Also taking into consideration that iDEAL is more and more adopted by non ecommerce businesses like utility firms, ensurance companies and membership organizations (sporting clubs), it is likely that iDEAL keeps its pace. The number of iDEAL transactions for 2014 are projected around 172 million.
iDEAL is an online payment method using real-time online bank transfers to complete online and mobile purchases. iDEAL's success is due to the fact that it is perceived as a secure online payment method by both customer and merchants in The Netherlands. As a key driver for the usage of iDEAL, over 8 million Dutch people have online banking capability (Eurostats). There is no chargeback mechanism and merchants benefit from payment guarantee. Processing costs are fairly low in comparison to other online payment options and they are fixed (35-70 eurocents). In other words, it is a payment method that merchants can count on. Consumers feel confident using their familiar home banking and not having to share sensitive card data. All major Dutch banks support iDeal from both issuing and acquiring side. The acquiring licensees include ABN AMRO Bank, Rabobank, ING Bank, Friesland Bank (=Rabobank), Deutsche Bank and The Royal Bank of Scotland. More information on the preferred online payment methods in the Netherlands.