iDeal is the most popular payment method in The Netherlands

iDeal is the most popular payment method for Dutch people, with around 70% of all online e-commerce transactions in the Netherlands last year processed using iDeal to pay for goods and services they purchase online. When compared with any other type of online payment method, including credit and debit cards, it is far and away the most popular and commonly used.

What is iDeal?

iDeal is the most popular payment method in the Netherlands for online transactions. It allows consumers to make secure payments when purchasing products and services online. The payments are processed as real-time bank transfers, going directly from the person’s bank account to the business selling the goods and services.

How iDeal works is that when you are purchasing goods or services online and you get to the payment stage of the process, iDeal redirects you to a page within your own bank’s website or banking app, a familiar and safe place where you have confidence that you can complete the payment quickly and securely. Once you confirm the payment the funds are transferred directly to the seller immediately. All Dutch banks support iDeal as a payment vehicle, and it is widely accepted as a method for online payments. It is a convenient and fantastic way to make one-off payments for goods and services on an e-commerce platform.

iDeal was first introduced by the Dutch bank association Currence back in 2005, originally intended for webshop payments alone. These days, it has grown to become the primary method of payment for many different types of transactions, whether for paying local taxes, making donations to charities, paying traffic fines, or purchasing goods and services online.

How does the process of paying with iDeal work?

There are a few simple steps a customer will follow to pay using iDeal:

• The customer selects the product on an online store and clicks ‘Pay’ to see a list of payment methods
• iDeal is chosen as the payment method and the specific bank is chosen
• The customer is redirected to the bank environment or banking app and enter their bank details
• The customer goes through the authorisation process
• The transaction is authorised in real-time
• The amount is transferred immediately and directly from the consumer’s bank account to the trader
• Confirmation is sent of the payment to the e-commerce platform
• The shopper is redirected back to the online shop

Promoting iDeal as a business

Providing iDEAL as a method of payment to consumers in the Netherlands makes a lot of sense. It is a risk-free, secure, and low-cost payment method that ensures consumers are offered the chance to pay securely and within an environment that they are familiar with. As Dutch people are so used to paying using iDeal, it makes little sense to not offer it as a payment method if a business has an e-commerce platform selling goods and services to consumers via the Internet.

Including iDeal on a company website as a payment method ensures that Dutch customers feel safe and secure when purchasing items and services directly from that company. Trustworthiness is such a big part of any company and brand, and iDeal will play a big part in making Dutch consumers trust a business.

Advantages of iDeal for customers

There are a few advantages to using iDeal as a consumer in the Netherlands. The first is that it provides a fast and familiar space to make payments. iDeal seamlessly integrates into banking interfaces so that you can log in to your bank with simplicity and speed. There is no need to enter payment details manually, making it easy to pay on the go, and all transactions securely take place within the banking interface, minimising the risk of fraud.

iDeal benefits to businesses

For business, iDeal provides a low-cost option and guaranteed payment, as it does not allow chargebacks. A business will only pay for each successful transaction. It is secure and simple both ways, offering protection against defaults and minimising the risks of payment disputes with consumers. As such a high percentage of Dutch consumers use iDeal to make payments, it makes sense to tap into this market as a business.

Comparisons with Google Pay and Apple Pay in the Netherlands

Both Google Pay and Apple Pay have only been available in the Netherlands since 2020 and 2019 respectively, and Apple Tap to Pay has only been available since November 2023. When compared to iDeal and other methods of paying, it is more limited to use either of these options in the Netherlands compared to other countries where the payment processing platforms are available, although with the roll-out of tap to pay this might change in the coming years, as more people can pay with their iPhones at the point of transaction in-store.

iDeal within the iGaming landscape

iDeal is a primary payment method within many different areas of life in the Netherlands, none more so than within the iGaming landscape. You can see this with payment processing for Dutch online casinos, providing fast, secure, and simple ways to deposit money into an account and withdraw winnings with ease after playing some of your favourite online casino and live casino games. As iDeal is such a popular way of making payments in the Netherlands, it is a no-brainer that a sector such as the iGaming industry would focus on this payment process rather than credit cards and alternative methods of payment.

iDeal is the most popular method of paying for goods and services in the Netherlands. As the online landscape for purchasing items continues to expand, it provides a safe, secure, speedy, and familiar way for consumers to make payments with trust and confidence.