Payment method
October 16, 2024
iDEAL
iDEAL is a popular online payment method in the Netherlands, enabling customers to make secure payments directly from their bank accounts. The process is straightforward, similar to open banking: customers select iDEAL during checkout, choose their bank, log in, approve the payment, and are then redirected back to the retailer’s website. How iDEAL Operates:
Payment Initiation: Customers choose the iDEAL option at checkout.
They select their bank from a list.
After logging into their account, they approve the transaction.
Real-Time Confirmation: The bank provides immediate confirmation to the iDEAL platform.
This confirmation is relayed to the retailer, finalizing the transaction.
Settlement: Payments are settled through standard interbank clearing systems (Equens Worldline or Target2).
Retailers generally receive the funds instantly or by the end of the same day.
Retailer Integration: Retailers need to collaborate with an acquiring bank, acquirer, or a Payment Service Provider (PSP) to process iDEAL payments.
Larger businesses typically require a specific iDEAL contract, while smaller ones can work with a CPSP without needing a dedicated contract.
Currently, there are 18 acquirers, 62 CPSPs, and around 210,000 retailers/billers using iDEAL.
Notable Features of iDEAL:
Mobile Banking Integration: More than 80% of iDEAL transactions are initiated through mobile banking applications.
iDEAL ID: A unique, reusable ID linked to the user's bank account, facilitating quicker checkouts and recurring payments.
iDEAL QR: Users can scan a QR code within their banking app to start payments effortlessly.
iDEAL Checkout: This feature allows for faster checkouts by remembering user preferences, such as delivery addresses.
iDEAL in3: Customers can divide their payment into three equal installments at no extra cost—one payment immediately, one after 30 days, and the last after 60 days.
iDEAL Scheduling: Users can set up future payments for subscriptions or recurring bills.
iDEAL Payment Link: Businesses can send payment requests through email, WhatsApp, or other platforms, simplifying payment processing.
iDEAL C2C: This function enables consumer-to-consumer payments, similar to services like Tikkie.
Conclusion:
iDEAL is a comprehensive payment platform that provides numerous features aimed at enhancing user convenience and security. Its direct integration with Dutch banks ensures real-time payment processing and efficient fund settlements, making it a favored choice for both consumers and retailers in the Netherlands.