Payment options and available methods can be a huge factor in achieving success for businesses that look to enter the Dutch market. While this statement can be considered true for businesses operating worldwide, the Dutch have really shown a loyalty to one certain type of payment solution in recent years.
iDEAL was a revolutionary game-changer for the Dutch population when it came to making payments online, as it provided its users with total control, access, and convenience to help smooth the transaction process and make it as streamlined as it needs to be.
How was iDEAL formed?
The platform iDEAL was created in 2004 after several of the biggest Dutch banks decided to come together and create a solution for their customers that would streamline the process of making payment transactions. Banks involved in the creation of the solution included ABN Amro, ING Bank, Postbank and Rabobank.
In making it available, iDEAL has allowed merchants to make it easier than ever for their customers to make payments. The solution is available to use 24 hours a day, and can provide real-time transactions that are inexpensive compared to other options, regardless of the institution that they might bank with.
Before its creation, consumers in The Netherlands would have to go through a complex and time-consuming process just to make an online transaction. They would have to either transfer their funds manually or they would have to scroll through a list of payment methods that were available, find the one that they could use, and then go through various payment portal pages to finally make the payment. With iDEAL, they can do it seamlessly and without fuss.
What type of businesses use iDEAL?
When you consider the loyalty aspect that has been shown to iDEAL by the Dutch, it shouldn’t come as a surprise that there are thousands of businesses across multiple industries accepting it as a payment form.
According to figures, there are more than 1.2 billion transactions being made each year using the solution, with around 130,000 different businesses accepting it. Customers can use it to pay simple household bills, engage in entertainment activities online like using an online casino, or paying their taxes to the local or national governments. Indeed, with it so simple to use and allowing people to make a transaction regardless of who they bank with, it’s no surprise that iDEAL is made as accessible as it is.
iDEAL is also versatile
Of course, while the accessibility is always great, the versatility that it offers users is also a huge reason why there has been so much loyalty shown by the Dutch and why iDEAL has continued to remain a preferred option for so many.
Customers who wish to use iDEAL may find it on the websites in which they are accessing to make a payment, or they may be able to receive a link to their phone that enables them to make a transaction. Links can be sent through traditional SMS channels, or it can be sent to a phone that has WhatsApp.
Payments are quick and effortless to make, as all of the data has been pre-filled. The customer would simply have to confirm that they want to use it as a payment method. This feature is perhaps why iDEAL remains popular, as it’s used for 70% of all e-commerce transactions in the Netherlands. The solution’s trustworthiness and effectiveness have been highlighted as benefits, as has its ability to fit with most European markets.
Why do businesses use iDEAL as a preferred payment solution?
While customers can benefit when being provided with iDEAL as a payment solution, businesses who offer it can also benefit from various advantages that other solutions may not always be able to offer.
Transactions are easily made and are secure, but additional security and support can be found if assistance is required. The support can also ensure that compliance is always being met and that any transaction made can go through smoothly and without fault.
Chargebacks can often be an issue for businesses, but by using iDEAL, these can be significantly reduced. As the payment is confirmed by customers directly through their bank, the business can get on with processing and dealing with the order and not worry about being hit with a chargeback later down the line. In addition, it provides them with protection from those who like to abuse the system that other payment options may offer.
