Netherlands
The Netherlands is located in North-West Europe, sharing borders with Belgium and Germany. The country is a constitutional monarchy and parliamentary democracy, with the beautiful city of Amsterdam as its capital. For its size, the Netherlands is quite densely populated with an average of 492 inhabitants per square kilometer. This is reflected in the population and in 2012, statistics show that the country’s population has reached 16.77 million.
An extremely low lying nation, 20 percent of the Netherlands, along with 21 percent of its population, lie below sea level. With 50 percent of its land lying less than one meter above sea level, flooding presents a serious risk to the population resulting in a series of projects known as the Delta works. In 2012, the Netherlands is recognized as one of the world’s most liberal nations. A relaxed drug policy, legal euthanasia and an allowance for same-sex marriage have all become notable features of Dutch culture.
The Netherlands is located in North-West Europe, sharing borders with Belgium and Germany. The country is a constitutional monarchy and parliamentary democracy, with the beautiful city of Amsterdam as its capital. For its size, the Netherlands is quite densely populated with an average of 492 inhabitants per square kilometer. This is reflected in the population and in 2012, statistics show that the country’s population has reached 16.77 million. An extremely low lying nation, 20 percent of the Netherlands, along with 21 percent of its population, lie below sea level. With 50 percent of its land lying less than one meter above sea level, flooding presents a serious risk to the population resulting in a series of projects known as the Delta works. In 2012, the Netherlands is recognized as one of the world’s most liberal nations.
A relaxed drug policy, legal euthanasia and an allowance for same-sex marriage have all become notable features of Dutch culture. The Netherlands has a modern, developed economy with an educated workforce, focused primarily on the chemical industry, metallurgy, and electrical goods. Its location ensures easy access to key markets in the UK and Germany, as well as the rest of continental Europe. Well known Dutch companies include Heineken, Shell and Philips. A knowledge-based economy with significant English language skills has proven attractive to foreign investors, and none more so than the United States. Statistics show that the United States has invested heavily in the Netherlands over the last decade, contributing billions to the economy. Ripples from the worldwide financial crisis have been felt in the Netherlands, but it has not suffered as badly as neighbouring countries. Over the past four years, unemployment has risen slightly with figures showing that the official level now stands at 5.5 percent. A 2011 WTO ranking of the largest exporting countries listed the Netherlands as the fifth-largest merchandise exporter worldwide, and the country has a GDP per capita of 47,841.92 U.S. dollars in 2012.
Top banks
ING Bank NV
ING Bank NV: ING Bank is one of the largest banks in the Netherlands, offering a wide range of banking and financial services to individuals, small businesses, and corporate clients. It operates both domestically and internationally.
Coöperatieve Rabobank U.A.
Coöperatieve Rabobank U.A.: Rabobank is a cooperative bank with a strong focus on agricultural and rural financing. It provides banking, insurance, and asset management services to individuals, businesses, and agricultural cooperatives.
ABN AMRO Bank N.V.
ABN AMRO Bank N.V.: ABN AMRO is a leading Dutch bank that offers a comprehensive range of banking services, including retail, private, and corporate banking, as well as asset management and investment banking.
De Volksbank N.V.
De Volksbank N.V.: De Volksbank is a retail bank that operates through its four brands: SNS, ASN Bank, RegioBank, and BLG Wonen. It primarily focuses on retail banking services, including mortgages, savings accounts, and payment solutions.
NIBC Bank N.V.
NIBC Bank N.V.: NIBC Bank is a specialized bank with a focus on corporate and retail banking. It provides a range of financial products and services, including lending, risk management, and investment solutions.
Achmea Bank N.V.
Achmea Bank N.V.: Achmea Bank is a subsidiary of Achmea, the largest insurance group in the Netherlands. It offers banking services to retail and corporate customers, including mortgages, savings accounts, and insurance-related banking products.
Van Lanschot Kempen NV
Van Lanschot Kempen NV (F. van Lanschot Bankiers NV): Van Lanschot is a private bank that caters to high-net-worth individuals, families, and entrepreneurs. It provides personalized wealth management, investment, and financial planning services.
Triodos Bank N.V.
Triodos Bank N.V.: Triodos Bank is a sustainable bank that focuses on financing businesses, organizations, and projects that have a positive impact on society and the environment. It promotes sustainable and ethical banking practices.
Delta Lloyd Bank N.V.
Delta Lloyd Bank N.V.: Delta Lloyd Bank is a subsidiary of Nationale-Nederlanden, a leading insurance and asset management company. It offers banking services, including mortgages, savings accounts, and investment products.
KAS Bank N.V.
KAS Bank N.V.: KAS Bank specializes in providing custodian and clearing services to institutional investors, asset managers, and financial institutions. It offers securities custody, fund administration, and other related services.
Top payment methods
iDEAL is a popular online payment method in the Netherlands that enables customers to securely initiate real-time bank transfers from their bank accounts to yours. When making an online purchase, customers are redirected to their own bank's website to complete the payment, ensuring immediate fund transfer. iDEAL is widely supported by all Dutch banks, making it a convenient and widely accepted payment option for online transactions. According to Statista, around 70% of all e-commerce transactions in the Netherlands last year utilized iDEAL. While iDEAL is well-suited for one-time payments, its requirement for customer authentication poses challenges for recurring payments such as subscriptions.
Klarna
Klarna is a popular Buy Now Pay Later payment method availablein 19 countries. With Klarna, the shopper can choose to:·Pay later: Pay after the goods have been delivered.
·Pay over time: Pay in installments over time.
·Pay now: Pay the whole amount instantly, either by online banking or direct debit.Before approving the payment, Klarna performs risk checks on the shopper. If successful, Klarna takes on the full fraud risk for the payment, and pays you up front.
With Afterpay, customers can complete their purchases without making an upfront payment. Instead, they can choose to split their payments into multiple installments, typically ranging from 2 to 4 payments.
To use Afterpay, customers select it as their payment method during checkout. They are then redirected to the Afterpay platform to provide necessary information and undergo a real-time risk assessment. Afterpay assesses the customer's creditworthiness and approves or declines the payment request accordingly. If approved, the customer can proceed with the purchase, and Afterpay handles the installment payments.
Afterpay payments are typically scheduled to be automatically deducted from the customer's designated payment method at specific intervals, such as every two weeks. Customers receive notifications and reminders about upcoming payment due dates.
Using Afterpay allows customers to spread out their payments over time, making larger purchases more manageable and affordable. It has become a popular payment option, particularly among younger consumers who prefer the flexibility and control over their spending.
It's important to note that not all online stores or merchants offer Afterpay as a payment option. Customers should check the available payment methods during the checkout process to determine if Afterpay is supported for their desired purchase. Additionally, it's essential for customers to carefully review the terms and conditions of Afterpay, including any applicable fees or interest charges, to ensure a clear understanding of their financial obligations.
With Billink, customers can select it as a payment option during the checkout process on participating online stores. Instead of making an immediate payment, customers receive an invoice from Billink, usually via email, after the purchase is made. The invoice includes the details of the purchase, such as the total amount owed and the payment due date.
Customers have a specified period to complete the payment, typically ranging from 14 to 30 days, depending on the agreement between the merchant and Billink. During this time, customers can review the purchase, ensure their satisfaction with the products or services, and make the payment at their convenience.
To pay the Billink invoice, customers can follow the instructions provided in the invoice, which may include options such as bank transfer or online payment methods. Once the payment is received by Billink, the transaction is considered complete, and the customer's obligation is fulfilled.
Billink provides benefits for both customers and merchants. For customers, it offers the convenience of receiving products or services before making a payment. It allows them to better manage their cash flow and make purchases without immediate financial strain. For merchants, Billink reduces the risk of payment defaults and helps increase customer conversion rates by offering a flexible payment option.
It's important to note that not all online stores or merchants offer Billink as a payment option. Customers should check the available payment methods during the checkout process to determine if Billink is supported for their desired purchase. Additionally, customers should ensure they understand the terms and conditions of Billink, including any applicable fees or interest charges, to make informed decisions about their purchases and payments.
Paypal
Paypal is one of the market leaders in online payment solutions with more than 400 million active customers worldwide, available in 200 countries and in more than 100 different currencies. As faras online shopping payment is concerned, it is the one of the mostused payment method in France.
Debit Cards (Maestro,Vpay) / Online payment systems (IDEAL)
The use of credit cards is not as widespread as alternative payment methods such as debit cards and online payment systems. While credit cards are accepted at many large hotels, restaurants, and some retail establishments, it's important to note that not all merchants in the Netherlands accept credit cards.According to Statista:“The credit card penetration in the Netherlands was forecast to continuously increase between 2023 and 2028 by in total 5.6 percentage points. According to this forecast in 2028, the credit card penetration will have increased for the fifth consecutive year to 46.66 percent. Notably, the credit card penetration was continuously increasing over the past years.”Smaller businesses in the Netherlands like local shops, and service providers often prefer other payment methods due to the associated costs and transaction fees.The preference for debit cards is more prevalent in the Netherlands. Debit cards, such as Maestro and Vpay, are widely accepted and commonly used by Dutch consumers for their day-to-day transactions. Debit card payments are deducted directly from the customer's bank account, providing a convenient and familiar payment method. Debit cards dominate the retail sector in the Netherlands, despite the significant usage of iDEAL for online transactions. Approximately 60% of all retail transactions, both online and offline, are conducted using debit cards. The most commonly used cards in the country are Maestro and Vpay, although Maestro is gradually being phased out in favour of Mastercard debit cards across Europe. Starting summer 2023, individuals holding Maestro debit cards will transition to a fresh system known as Debit Mastercard. This upgraded card will provide users with enhanced features and advantages, including the ability to utilize their card at over 80 million acceptance points worldwide and conduct online transactions independently without the necessity of platforms like iDEAL.
Concluding remarks
While cash remains widely accepted in the Netherlands, its usage is gradually decreasing. Many businesses now prefer cashless payment methods such as debit cards, credit cards, and digital wallets. Cash still accounts for around 11% of all retail transactions and continues to be accepted at most retailers, serving as an alternative for those without bank accounts, travellers, and older populations. Digital wallets, including PayPal, Apple Pay, and Google Pay, are gaining popularity in the Netherlands. These mobile payment systems allow customers to make purchases using their smartphones or other mobile devices, eliminating the need for cash or physical cards. Digital wallets are secure and convenient, utilizing encrypted technology to safeguard personal and financial information. They can be used for both online and in-store transactions at retailers that accept mobile payments.
iDEAL
iDEAL is a widely used online payment method in the Netherlands. It enables customers to make secure online payments directly from their bank accounts. iDEAL is supported by most Dutch banks and is commonly used for e-commerce transactions.
Credit Cards
Credit cards, such as Visa, Mastercard, and American Express, are accepted in many establishments in the Netherlands, particularly in larger cities and tourist areas. However, it's worth noting that credit card usage is not as prevalent as in some other countries, and you may encounter more limited acceptance in smaller businesses or local establishments.
Debit Cards
Debit cards are commonly used for payment in the Netherlands. The most commonly used debit card is the "PIN" card, which is issued by Dutch banks and can be used for both online and in-person transactions. International debit cards such as Maestro and Visa Electron are also widely accepted.
BNPL
Buy now, pay later (BNPL) services have also gained traction in the Netherlands, allowing customers to split larger payments into 4 to 6 instalments. Common BNPL providers in the Netherlands include Klarna, Afterpay, and Billink, Paypal.
Online Banking
Online Banking: Online banking is highly popular in the Netherlands, and many people prefer to make payments through online banking platforms provided by their banks. This method allows individuals to transfer funds directly from their bank accounts to pay for goods and services.
Cash
Cash remains widely accepted in the Netherlands, its usage is gradually decreasing. Many businesses now prefer cashless payment methods such as debit cards, credit cards, and digital wallets.
Digital wallets
Digital wallets, including PayPal, Apple Pay, and Google Pay, are gaining popularity in the Netherlands. These mobile payment systems allow customers to make purchases using their smartphones or other mobile devices, eliminating the need for cash or physical cards.
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