
MOTO transactions explained
What are MOTO transactions? Why is it worth accepting them? Are there any risks to look out for? Here’s all you need to know →
Low-cost, secure, and virtually risk-free – iDEAL is a payment method you can’t afford to ignore if you’re planning to expand your online business to the Netherlands. In fact, iDEAL payments are the most popular online banking method among Dutch consumers, holding a 70% market share in the country!
But what exactly are iDEAL payments? How do they work? How can you benefit from adding this payment option to your checkout?
Keep reading to find out more!
iDEAL is the leading online payment brand in the Netherlands. Supported by all the major banks in the country, it provides a guaranteed payment to merchants and lets consumers pay online through their mobile banking app or online bank account.
iDEAL payments were introduced by the Dutch bank association Currence in 2005. Originally, they were mostly used for webshop payments. However, today, they’re the go-to payment method to settle all kinds of transactions, from making donations to paying local taxes or settling traffic fines.
Cultural norms and technology impact consumers all over the world when it comes to where to purchase and how to pay.
In most countries, people prefer to use local payment methods. In several European countries, customers may not even have a credit card, for instance. This means you’re losing out on opportunities to sell!
Accordingly, if you see Dutch customers visiting your online store and abandoning their cart in the latter stages of a purchase, the offered payment options could very much be the reason.
To increase your customer base and outpace competition, you’ll need to make people feel comfortable purchasing from you. If you want to successfully tap into the Dutch market, it’s worth knowing that the popularity and trustworthiness of iDEAL payments have grown tremendously over the past decade.
While the number of processed payments was around 4,5 million in 2006, this number skyrocketed to more than 640 million in 2019:
In fact, 60% of e-commerce transactions in the Netherlands were paid with iDEAL in 2019:
What’s more, 96% of all Dutch online shoppers used iDEAL in the first half of 2021, translating into a whopping 50 million purchases per month!
Now that you know why it’s worth adding iDEAL payments to your online store, let’s see what additional advantages it has to offer!
Adding iDEAL payments to your online store allows you to:
Now that you’re familiar with all the advantages of offering iDEAL payments in your online store, let’s see what the transaction flow looks like.
As we’ve already discussed, customers can use their bank’s online environment when using iDEAL payments. Therefore, the exact customer experience depends on the given bank.
The main steps are as follows:
As mentioned above, your customers can use iDEAL payments to pay in your online shop. However, this is not the only way to provide this fast and safe payment method.
You can send your customers an iDEAL payment link via email, WhatsApp, text message, or any other channel. This allows them to pay later for a subscription fee or electronic invoices.
The payment link takes the buyer directly to your landing page where the iDEAL payment request is ready for approval. The validity of the landing page will expire once the customer pays or after the expiration date of the offer.
It’s worth providing this option, as electronic invoices with an iDEAL payment link are paid three times faster!
You can also offer iDEAL payments via the iDEAL QR code. You can display these codes on invoices, bills, screens, billboards, and posters. The QR code features the iDEAL logo in the middle. Your customers can scan it quickly and securely with the QR scanner of their bank’s app. They can simply approve the payment by using their mobile access code, fingerprint, or facial recognition.
If you’re using Stripe as your payment service provider, integrating iDEAL payments will be as easy as accepting them!
You can add iDEAL payments from the Stripe Dashboard without changing your code. To enable this option, your prices need to be expressed in EUR!
Stripe will display the list of supported payment methods to your customers by evaluating the currency, payment method restrictions, and other parameters.
As your buyers need to authenticate the payment with their bank, the risk of fraud or unrecognized payments is low. Consequently, you won’t have to deal with disputes that turn into chargebacks, and funds won’t be withdrawn from your Stripe account.
If you want to successfully tap into the Dutch market, adding iDEAL payments to your webshop is a must! As the leading online payment method in the Netherlands, iDEAL provides a guaranteed payment to e-commerce merchants and allows buyers to pay online through their own bank. Thanks to its secure, user-intuitive system, immediate payment confirmation, and undeniable popularity, iDEAL payments help merchants boost their customer base in no time!
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