Key developments in iDEAL
Use of online payment product iDEAL increased significantly once again in 2012. The number of transactions rose by over 25 per cent, with a total value of €8.8 billion. Dutch consumers chose to pay with iDEAL 117 million times. In addition iDEAL is offered more and more in international webshops. Eighteen per cent of iDEAL payments are cross-border transactions.
These are some of the key developments highlighted in the latest annual report from Currence.
Payment Service providers lead iDEAL’s internationalisation
More and more Dutch consumers are using iDEAL for their international online purchases. In 2012 they used the payment method 21 million times to pay for products and services on overseas websites. That figure represents almost 18 per cent of all iDEAL transactions. According to Currence, it is payment service providers that are active across borders who are leading the expansion of the iDEAL payment system beyond the Netherlands.
This year, for the first time, banks and payment service providers have reported details of international iDEAL payments to Currence. That data reveals that the providers are playing a particularly prominent role in the cross-border market. More than half now offer the service to webshops abroad. In doing so, they have done much to increase competition in the market for iDEAL payments.
Expansion to other countries
The number of countries in which Dutch consumers can use the system to pay for their online purchases is also growing steadily. It currently stands at 51. Moreover, this expansion has attracted again further interest in iDEAL from international market players. iDEAL has a unique position in the Netherlands and is Europe’s most popular online payment method.
Since it now operates to SEPA (Single European Payments Area) standards, it has also become easier to use for sellers in other countries. This development opens up new opportunities for banks and payment service providers abroad to establish a strong position in their own local online transaction markets, as well as in facilitating their customers’ cross-border payments.
In the Netherlands, iDEAL remains as popular as ever among consumers. Research by consultancy BrandAsset has identified it as country’s strongest financial brand for the second year in a row. And before that, iDEAL already topped the list of most essential financial brands compiled annually by EURIB, the European Institute for Brand Management at Erasmus University Rotterdam.