Why iDEAL is ideal for your business
Modern business requires modern solutions. No solution turned out better for Dutch customers than iDEAL. The local payment provider is more popular than ever, with the European Institute for Brand Management claiming that customers from the Netherlands rank it as one of the top five most indispensable brands. According to the company statistics, 98% of Dutch customers can pay for their online purchases with this local solution.
What is iDEAL?
iDEAL is an online payment method that enables consumers to pay online through their own bank. For Dutch customers, it is the easiest way to pay for anything online, whether it is their energy bill or a webshop. By providing a familiar service to
Ever since iDEAL was introduced, more than 3 billion payments have been processed, 667 million of those in 2019. Roughly 60% of Dutch e-commerce payments were paid with iDEAL, while 99 million payments were via international websites. In comparison, credit card payments make up only 9% of total transactions in the Netherlands, limiting online shopping via cards to a selected few.
How does iDEAL works?
iDEAL is based on an online protocol consisting of a transaction and a status protocol. When a customer pays with iDEAL, they use the mobile banking app or the online banking application from their bank. The payment takes just a few steps. iDEAL is based on the SEPA Credit Transfer which means your customers could pay for goods and services easily through their bank account.
iDEAL advantages for merchants
iDEAL is available to all consumers who are online banking customers of the participating Dutch banks. This means it already has a big customer base that you can tap directly into. Consumers who already have online banking can start using iDEAL right away, as they do not have to register separately for the service.
Upon purchase, the funds are instantly debited from the consumers’ accounts. This payment method is “ideal” for merchants because payments made using iDEAL cannot be reversed.
The Netherlands market is notorious for its low credit card usage. Barely counting for 9% of all transactions, it can be difficult for card-focused merchants to boom in the country. By ensuring that the local payment method is available, you provide that your customers are ready to shop at any given time.
iDEAL’s specific way of functioning makes sure that both the merchant and the customer are protected. The payment solution has a lower risk of returns compared to others since the funds are instantly taken from the consumers’ account. On the other hand, credit-based payment options carry a higher risk of chargeback.
In most cases during the checkout process, familiarity is key. iDEAL increases the merchant’s sales as it allows consumers to make online purchases in a familiar, secure, and simple way. Transactions are performed by the consumer within their own banking environment and takes only a few simple steps.
As part of the payment process, the consumer is specifically requested to authorize the payment via the bank’s supported email, text, or security token notification method. The payment cannot be canceled once they have clicked the payment button, so the payment is guaranteed to the merchant with a low risk of returns.
Is iDEAL ideal for you?
With plenty of advantages for your customers and business, iDEAL is a great way to provide Dutch customers with a familiar payment experience and boost your sales inside Europe. If your business has traffic from the Netherlands, AlternativePayments can help you turn visitors into paying customers swiftly. Completely safe and very reliable, iDEAL not only protects your customers but any merchant who does not wish to deal with chargebacks and delayed payments.
Contact us to find out more about iDEAL and other alternative payment methods via our email firstname.lastname@example.org.