iDEAL is leading Dutch payment method for requests-to-pay

Bron: Currence

iDEAL, the leading online payment method in the Netherlands, has also become the leading scheme for increasingly popular requests-to-pay.

In 2018 a record breaking 525 million online payments were made with iDEAL, 38 percent more than in 2017, according to iDEAL brand owner Currence in its annual report for 2018. By December 2018, no less than 17.5 percent of all iDEAL payments were accounted for by C2C-payments (Consumer-to-Consumer), mainly as a result of requests-to-pay with Tikkie and other mobile payment apps from Dutch banks.

However, businesses have also discovered the advantages of requests-to-pay with regular B2C (Business-to-Consumer) iDEAL payment links and iDEAL QR-codes. “Customers tend to pay invoices much quicker with requests-to-pay, generally within 48 hours,” says Currence CEO Piet Mallekoote. “iDEAL QR-codes on printed invoices allow customers to pay quickly, accurately and reliably with their smartphones. The omnipresence of smartphones has accelerated the use of payment requests delivered to mobile devices.” Last year, 7 out of every 10 iDEAL payments were made with banking apps on smartphones and tablets.

iDEAL QR improves conversion rates for web shops

The first iDEAL QR-codes were introduced in 2016. Although the use of iDEAL QR was still modest in 2018, businesses start to appreciate its advantages on a desktop or laptop computer. During the first four months in 2019 some 14 million iDEAL QR-codes were generated by merchants. Dutch customers can scan iDEAL QR-codes in web browsers with their smartphones to conveniently pay without leaving the web shop and without the need for a separate payment authentication device from their bank. This application of iDEAL QR-codes increases conversion rates for web shops on laptops and desktops.

Mobile banking customers of all the leading banks can now scan iDEAL QR-codes immediately with the app from their bank, giving them the smoothest possible QR-payment experience. Customers from other banks can use the free iDEAL app for Android and iOS or any generic QR-scanner on their mobile device.

Increasing use of iDEAL by foreign web shops

As every Dutch online banking customer can pay with iDEAL immediately, without the need to apply or register, a rapidly increasing number of foreign web shops understand that iDEAL is indispensable to trade with Dutch consumers.

In 2018 the number of web shops outside the Netherlands that offered iDEAL as a payment method to Dutch customers, increased by 137 percent to nearly 17,000. One out of every six iDEAL payments by a Dutch consumer was made at a foreign web shop. Two dozen foreign payment service providers and almost 50 domestic payment service providers allow web shops all over the world to easily integrate iDEAL, without the need for a bank account in the Netherlands. The iDEAL payment scheme is open to foreign payment service providers and foreign merchants and ensures a level playing field for all participants.

Annual report

• Read the full Currence annual report for 2018
• Report from Citi Bank on request-to-pay: “The Request to Pay Revolution”

Image: CEO Piet Mallekoote (top left) and some employees from Currence iDEAL perform a balancing act on a 3D street drawing of an iDEAL QR-code during the Money20/20 conference in Amsterdam