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.