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{{Short description|Dutch e-commerce payment system}}
{{about|the e-commerce system|other uses|ideal (disambiguation)}}
{{about|the e-commerce system|other uses|ideal (disambiguation)}}
{{lowercase|title=iDEAL}}
{{lowercase|title=iDEAL}}
{{Use dmy dates|date=February 2024}}
{{Multiple issues|
{{Multiple issues|
{{advert|date=September 2020}}
{{primary sources|date=June 2016}}
{{primary sources|date=June 2016}}
{{refimprove|date=June 2016}}
{{refimprove|date=June 2016}}}}
}}
{{Infobox software
{{Infobox software
| name = iDEAL
| name = iDEAL
Line 41: Line 41:
| AsOf =
| AsOf =
}}
}}
'''iDEAL''' is [[e-commerce payment system]] used for [[online banking]] in the Netherlands. It is an online payment method that enables consumers to pay online through their own bank. In addition to [[Online shopping|online merchants]], other organisations that are not part of the e-commerce market also offer iDEAL.
'''iDEAL''' is an [[e-commerce payment system]] used for [[online banking]] in the [[Netherlands]]. Previously controlled by the Dutch e-commerce organization [[Currence]] since 2006, the company became owned by the [[European Payments Initiative]] (EPI) from October 2023.<ref>{{Cite web|url=https://www.payconiq.com/epi-successfully-completes-acquisition-of-ideal-and-payconiq-international/|title=EPI successfully completes acquisition of iDEAL and Payconiq International|work=Payconiq|access-date=2023-11-25|language=en-US}}</ref>


It is an [[online payment]] method that enables consumers to pay online through their own bank. In addition to [[Online shopping|online merchants]], other organisations that are not part of the e-commerce market also offer iDEAL.{{Citation needed|date=October 2024}}
iDEAL is used to pay energy bills, make donations to charities, buy mobile credits, pay local taxes, and traffic fines. The payment method allows customers to buy on the Internet using direct online transfers from their own bank account. iDeal is owned by a Dutch e-commerce organization [[Currence]].


== History ==
== History ==
The system was first conceived by the then major banks in the Netherlands [[ABN Amro]], [[ING Bank]], [[Postbank N.V.]] and [[Rabobank]] to develop a single system for online payments that could be used by all banks.
The system was conceived by the Dutch banks [[ABN Amro]], [[ING Bank]], [[Postbank N.V.]] and [[Rabobank]], to develop a single system for online payments that could be used by all banks. The payment platform was opened to consumers in 2005.{{Citation needed|date=October 2024}}


The payment platform was first introduced to consumers in 2005. In 2006 the consortium moved the iDEAL brand to the Dutch banking organization Currence.<ref>{{cite news |url=https://www.emerce.nl/nieuws/banken-dragen-merk-ideal-over-aan-currence |title=Banken dragen merk Ideal over aan Currence |language=nl |trans-title=Banks move Ideal brand to Currence |date=November 2, 2006 |publisher=Emerce}}</ref>
In 2006 the consortium moved the iDEAL brand to the Dutch banking organization Currence.<ref>{{cite news |url=https://www.emerce.nl/nieuws/banken-dragen-merk-ideal-over-aan-currence |title=Banken dragen merk Ideal over aan Currence |language=nl |trans-title=Banks move Ideal brand to Currence |date=November 2, 2006 |publisher=Emerce}}</ref> Nine years after claiming to be responsible for 54% of the country's online payments, iDEAL reported having 70% of this market in 2023.<ref name="standard"/>


In the same year, the European Payments Initiative acquired iDEAL and Payconiq International, as well as new shareholders, for the upcoming launch of its instant payment solution. iDEAL is to become a European payment account-to-account (A2A) instant payment scheme and a multi-faceted digital wallet.<ref name="standard">{{Cite web |title=Dutch payment processor iDeal to become European standard |url=https://nltimes.nl/2023/04/25/dutch-payment-processor-ideal-become-european-standard |access-date=2023-04-25 |website=NL Times |language=en}}</ref><ref>{{Cite web |title=EPI Company announces new acquisitions and shareholders |url=https://thepaypers.com/payments-general/epi-company-announces-new-acquisitions-and-shareholders--1262337 |access-date=2023-04-25 |website=thepaypers.com |language=en}}</ref><ref name=":0">{{Cite web |last=Dumitrescu |first=Irina |date=2023-04-25 |title=[GLOBAL] EPI Company announces acquisitions, additional shareholders and the coming launch of its new instant payment solution | archive-url=https://web.archive.org/web/20240716101629/https://www.epicompany.eu/epi-company-announces-acquisitions-additional-shareholders-and-the-coming-launch-of-its-new-instant-payment-solution/ |archive-date=2024-07-16 |url=https://www.epicompany.eu/epi-company-announces-acquisitions-additional-shareholders-and-the-coming-launch-of-its-new-instant-payment-solution/ |access-date=2023-04-25 |website=European Payments Initiative |language=en-US |url-status=dead}}</ref><ref>{{Cite web |date=2023-04-25 |title=iDEAL Becomes More Ideal |url=https://www.ideal.nl/en/actueel/nieuws/ideal-becomes-more-ideal/ |url-status=dead |archive-url=https://web.archive.org/web/20230425092413/https://www.ideal.nl/en/actueel/nieuws/ideal-becomes-more-ideal/ |archive-date=25 April 2023 |access-date=2023-04-25 |website=iDEAL |language=en-US}}</ref>
The system gained notoriety in 2014 when it claimed 54% of all Dutch online payments. In 2023 iDEAL claimed to have 70% of all Dutch online payments.<ref>{{Cite web |title=Dutch payment processor iDeal to become European standard {{!}} NL Times |url=https://nltimes.nl/2023/04/25/dutch-payment-processor-ideal-become-european-standard |access-date=2023-04-25 |website=nltimes.nl |language=en}}</ref>


EPI will initially enable person-to-person (P2P) and person-to-professional (P2Pro) payments, followed by online and mobile shopping payments and then point-of-sale payments. A comprehensive range of transaction types will be supported, including one-off payments, subscriptions, installments, payments upon delivery and reservations. Additionally, value-added services will be incorporated into the solution over time, including responsible ‘Buy Now, Pay Later’ (BNPL) financing, digital identity features and integration of merchant loyalty programmes.<ref name=":0" />
EPI Company has announced acquisition plans of iDEAL and Payconiq International, new shareholders and the upcoming launch of its instant payment solution. iDEAL is to become a European payment account-to-account (A2A) instant payment scheme and a multi-faceted digital wallet.<ref>{{Cite web |title=Dutch payment processor iDeal to become European standard {{!}} NL Times |url=https://nltimes.nl/2023/04/25/dutch-payment-processor-ideal-become-european-standard |access-date=2023-04-25 |website=nltimes.nl |language=en}}</ref><ref>{{Cite web |title=EPI Company announces new acquisitions and shareholders |url=https://thepaypers.com/payments-general/epi-company-announces-new-acquisitions-and-shareholders--1262337 |access-date=2023-04-25 |website=thepaypers.com |language=en}}</ref>


European Payments Initiative (EPI) has announced that iDEAL will be replaced by its [[Wero (payment)|Wero]] payment service.<ref>{{Cite web |last=Dumitrescu |first=Irina |date=2023-09-21 |title=European Payments Initiative selects "wero" as commercial name for its innovative digital wallet |url=https://epicompany.eu/media-insights/epi-selects-wero-as-commercial-name-for-its-innovative-digital-wallet |access-date=2023-10-23 |website=European Payments Initiative |language=en-US}}</ref> Wero is launched in Germany, France and Belgium in mid-2024 as a P2P payment solution, but the service will offer e-commerce/m-commerce payments from mid-2025. The launch of Wero in the Netherlands is currently prepared and foreseen for end 2025/begin 2026, although not much is currently disclosed about how a transition from iDEAL to Wero will take place.
== Process ==
iDEAL offers merchants a real-time payment method to accept internet payments. For customers, iDEAL uses the same environment as their banks' online banking sites. A high level of security is realized by using [[two-factor authentication]] (2FA), such as a [[challenge–response]] [[access token]] based on the chip embedded in the [[debit card]] or [[Automatic teller machine|ATM]] card. Furthermore, no sensitive information is being shared with the merchant, such as credit card numbers. There is no [[chargeback]] right, however, which can be considered a disadvantage for the consumer using this payment method. This is considered an advantage to the merchants.{{Citation needed|date=January 2020}}

iDEAL works as follows:

* Merchant offers iDEAL as payment method
* Consumer selects iDEAL and selects their bank
* Consumer is redirected to their bank's login page
* Participating bank displays transaction data
* Customer enters account number and signs the transaction digitally using a [[2FA]] token
* Bank authorizes the transaction in real-time, deducting the amount directly from the consumer's account (if there is not enough balance, the transaction will be refused)
* Merchant received real-time confirmation of the payment by the bank
* Consumer is redirected back to the merchant page with a confirmation that the payment has been successful

== Criticism ==
{{csection|date=June 2016}}

iDEAL's payment makes use of the online banking environment of participating banks and therefore makes use of the extensive safety measures of the individual banks. While the transactions themselves are widely considered to be safe, iDEAL transactions could technically be regarded as cash payments between customers and suppliers, to which the bank is no party and offers no insurance. This means that iDEAL payments cannot be reversed when, for example, a online merchant fails to deliver.<ref>[http://www.ideal.nl/en/payer/faq/ Can I reverse an iDEAL payment?]</ref> If a user suspects fraud, their only option to get paid money back, is to make a case with their bank, in which the burden of proof lies with the customer and results are unsure. For purchases from untrusted suppliers, other methods of payment can have benefits.

Although banks have been joining efforts to limit technical failures of the system, users (especially sellers) have complained about regular downtime. In 2014, the [[High availability|average availability]] of iDEAL was 99.5% for most customer banks, equivalent to 1.8 days of downtime per year.<ref>[http://nos.nl/artikel/2028186-banken-komen-met-site-die-storingen-ideal-toont.html Banken-komen-met-site-die-storingen-ideal-toont]</ref>


== Transaction statistics==
== Transaction statistics==
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{| class="wikitable"
{| class="wikitable"
|+ Annual payments<ref>{{cite web |url=http://www.ideal.nl/en/payee/key-figures/ideal-payments/ |title=Key Figures - iDeal payments |access-date=April 18, 2023 |publisher=iDeal}}</ref>
|+ Annual payments<ref>{{cite web |url=http://www.ideal.nl/en/payee/key-figures/ideal-payments/ |title=Key Figures - iDEAL payments |access-date=April 18, 2023 |publisher=iDeal |archive-date=5 January 2018 |archive-url=https://web.archive.org/web/20180105070206/https://www.ideal.nl/en/payee/key-figures/ideal-payments/ |url-status=dead }}</ref><ref>{{cite web|url=https://www.currence.nl/en/nieuws/strong-growth-ideal-idin-emandates-2021/|title=Strong growth of iDEAL, iDIN and e-mandates in 2021|date=2 February 2022|website=[[Currence]]|access-date=18 February 2024}}</ref>
|-
|-
! Year !! Transactions
! Year !! Transactions
Line 127: Line 108:
| 2020
| 2020
| style="text-align:right; |890.3 million
| style="text-align:right; |890.3 million
|-
| 2021
| style="text-align:right; |1.14 billion
|}
|}


Line 134: Line 118:


== References ==
== References ==

{{reflist}}
{{reflist}}


{{Dutch financial services companies}}
{{Dutch financial services companies}}
{{Mobile payments}}


[[Category:2023 mergers and acquisitions]]
[[Category:E-commerce in the Netherlands]]
[[Category:E-commerce in the Netherlands]]
[[Category:Payment service providers]]
[[Category:Payment service providers]]

Latest revision as of 14:23, 31 December 2024

This article is about the e-commerce system. For other uses, see ideal (disambiguation).

iDEAL
Developer(s)Currence
(Payconiq, ABN AMRO, Friesland Bank, ING Bank, Knab, Rabobank, Triodos Bank, Van Lanschot, De Volksbank)
Initial release2005
Websitewww.ideal.nl

iDEAL is an e-commerce payment system used for online banking in the Netherlands. Previously controlled by the Dutch e-commerce organization Currence since 2006, the company became owned by the European Payments Initiative (EPI) from October 2023.[1]

It is an online payment method that enables consumers to pay online through their own bank. In addition to online merchants, other organisations that are not part of the e-commerce market also offer iDEAL.[citation needed]

History

[edit]

The system was conceived by the Dutch banks ABN Amro, ING Bank, Postbank N.V. and Rabobank, to develop a single system for online payments that could be used by all banks. The payment platform was opened to consumers in 2005.[citation needed]

In 2006 the consortium moved the iDEAL brand to the Dutch banking organization Currence.[2] Nine years after claiming to be responsible for 54% of the country's online payments, iDEAL reported having 70% of this market in 2023.[3]

In the same year, the European Payments Initiative acquired iDEAL and Payconiq International, as well as new shareholders, for the upcoming launch of its instant payment solution. iDEAL is to become a European payment account-to-account (A2A) instant payment scheme and a multi-faceted digital wallet.[3][4][5][6]

EPI will initially enable person-to-person (P2P) and person-to-professional (P2Pro) payments, followed by online and mobile shopping payments and then point-of-sale payments. A comprehensive range of transaction types will be supported, including one-off payments, subscriptions, installments, payments upon delivery and reservations. Additionally, value-added services will be incorporated into the solution over time, including responsible ‘Buy Now, Pay Later’ (BNPL) financing, digital identity features and integration of merchant loyalty programmes.[5]

European Payments Initiative (EPI) has announced that iDEAL will be replaced by its Wero payment service.[7] Wero is launched in Germany, France and Belgium in mid-2024 as a P2P payment solution, but the service will offer e-commerce/m-commerce payments from mid-2025. The launch of Wero in the Netherlands is currently prepared and foreseen for end 2025/begin 2026, although not much is currently disclosed about how a transition from iDEAL to Wero will take place.

Transaction statistics

[edit]

The number of transfers processed:

Annual payments[8][9]
Year Transactions
2006 4.4 million
2007 14.9 million
2008 27.8 million
2009 45.4 million
2010 68.8 million
2011 93.9 million
2012 117.2 million
2013 142.5 million
2014 180.2 million
2015 222.0 million
2016 282.6 million
2017 378.1 million
2018 523.8 million
2019 666.9 million
2020 890.3 million
2021 1.14 billion

See also

[edit]

References

[edit]
  1. ^ "EPI successfully completes acquisition of iDEAL and Payconiq International". Payconiq. Retrieved 25 November 2023.
  2. ^ "Banken dragen merk Ideal over aan Currence" [Banks move Ideal brand to Currence] (in Dutch). Emerce. 2 November 2006.
  3. ^ a b "Dutch payment processor iDeal to become European standard". NL Times. Retrieved 25 April 2023.
  4. ^ "EPI Company announces new acquisitions and shareholders". thepaypers.com. Retrieved 25 April 2023.
  5. ^ a b Dumitrescu, Irina (25 April 2023). "[GLOBAL] EPI Company announces acquisitions, additional shareholders and the coming launch of its new instant payment solution". European Payments Initiative. Archived from the original on 16 July 2024. Retrieved 25 April 2023.
  6. ^ "iDEAL Becomes More Ideal". iDEAL. 25 April 2023. Archived from the original on 25 April 2023. Retrieved 25 April 2023.
  7. ^ Dumitrescu, Irina (21 September 2023). "European Payments Initiative selects "wero" as commercial name for its innovative digital wallet". European Payments Initiative. Retrieved 23 October 2023.
  8. ^ "Key Figures - iDEAL payments". iDeal. Archived from the original on 5 January 2018. Retrieved 18 April 2023.
  9. ^ "Strong growth of iDEAL, iDIN and e-mandates in 2021". Currence. 2 February 2022. Retrieved 18 February 2024.
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