What is iDEAL?

iDEAL is an Online Banking Payment method based on a four-corner model which generates a SEPA Credit Transfer from within the consumers trusted online banking portal. By using iDEAL consumers are able to pay for their online purchases in a user-friendly, cost-efficient and secure fashion. Merchants receive real-time confirmations of the iDEAL payments which are guaranteed and irrevocable.

iDEAL is offered by 12 issuers (consumer banks) and 11 acquirers as well as 60 payment institutions to end users (consumers and merchants). Most payment institutions cover international reach.

Four-corner model iDEAL

iDEAL’s success in the Netherlands

iDEAL payments have shown an exceptional growth since its start in October 2005. The use of iDEAL also continues to increase in other areas, outside the traditional e-commerce. In particular in charity donations and the payment of invoices and fines, as an alternative to the SEPA direct debit. Over 100,000 merchants now offer iDEAL as a payment method.

Number of iDEAL payments*

* Millions of transactions, percentage growth relative to the previous year

In the Netherlands iDEAL is used most often for online purchases by far (see figure below).

Proportion of payments made bij various methods*

*Percentage of online purchases in 2017 and 2018

The use of iDEAL at Dutch web shops continues to grow not only in number but also in market share. Research shows that within e-commerce iDEAL’s market share is 57% in the first half of 2018. Credit card payments follow with 11%, which lagged behind by some way. Consumers find iDEAL familiar, secure and easy to use.

iDEAL payments abroad

iDEAL is also increasingly being used to pay for online purchases from web-based merchants abroad and is accepted by web shops in over 60 countries.

All parties in the payment chain benefit from using iDEAL.

Key benefits

Key benefits for financial institutions

  • Revenue stream independent from cards
  • Improved retail customer relation
  • No sharing of credentials
  • Ready for Access-to-the-account
  • Based on SEPA Credit Transfer

Key benefits for merchants

  • Real-time confirmation and payment guarantee
  • Best-of-class reach: no sign-up for payers
  • Conversion better than credit cards: integrated in trusted online and mobile banking

Key benefits for consumers

  • Familiar, secure and user friendly
  • Easy to use on mobile via mobile banking app
  • No sharing of credentials

iDEAL mobile

As m-commerce is the current driver for online sales, banks have launched iDEAL mobile. It allows customers to pay for their online purchases with iDEAL in their mobile banking app. An easy and secure payment without the need for devices other than your smartphone and a 5-digit PIN authorisation. It enables ‘payments everywhere’ with an iDEAL QR code. iDEAL mobile makes it easier to shop and pay anywhere and anytime. In the past two years iDEAL payments via mobile devices have increased sharply. Nearly 70% of all iDEAL payments are already paid via consumer’s mobile banking apps.

For more information, contact the iDEAL team at iDEAL Currence BV:
ideal@currence.nl | www.ideal.nl

Last update: 26 March 2019