The Netherlands is one of the leading European countries in adopting digital/cashless payments. The total value of digital transactions is expected to reach USD 71 billion in 2023 and USD 109 billion by 2027. With the introduction of digital methods, the use of cash has been steadily declining. Cash was used for only 11% of the total POS transactions in the Netherlands.
Customers opt for contactless payment methods, majorly credit and debit cards, mobile wallets, SEPA, and more. Because of this, businesses need to actively start offering these payment methods if they want to thrive in this competitive market.
In this blog, we’ll list some of the most popular payment methods in the Netherlands. Also, we’ll discuss the challenges businesses face when integrating local payment methods and possible solutions. So, read in full.
Cards, primarily debit cards, are quite popular in the Netherlands. Over 60% of retail transactions across the Netherlands are made using debit cards. Popular card brands include Visa, Mastercard, American Express, Maestro, Vpay, and more.
Coming to credit cards, they’re not nearly as popular as debit cards. Many merchants don’t even accept credit cards.
The popularity of digital wallets in the Netherlands should not come as a surprise, considering how advanced the country is. Customers can conveniently pay using mobile devices like smartphones or smart watches without carrying cards or cash. Popular digital wallets in the Netherlands include Google Pay, Apple Pay, and PayPal.
iDEAL facilitates bank-to-bank transactions and is pretty popular in the Netherlands. Around 70% of eCommerce transactions in the Netherlands were made using iDEAL. This popularity is primarily because of its high acceptance rate and ease of use.
When using iDEAL, customers are redirected to the bank’s website, where they can enter the necessary details. And the transaction is completed. While iDEAL is great for one-off payments, making recurring or subscription payments is hard. This is because the customer has to authenticate each time they make a transaction.
SEPA in SEPA Direct Debits stands for Single Euro Payments Area. This payment method is similar to iDEAL and facilitates bank-to-bank online transactions. Customers can connect their bank accounts with SEPA and seamlessly make purchases.
SEPA works in all EU countries, allowing customers to pay securely and conveniently. Moreover, SEPA can be used for accepting recurring payments. So, if you’re a subscription business, you must integrate SEPA.
However, SEPA is slower as compared to iDEAL. This happens because the transactions go through multiple banks before finally being credited. Sometimes, it can take up to 14 days.
While cash is used in the Netherlands, its popularity is steadily declining. People are moving towards digital and contactless modes of payment, such as digital wallets, credit cards, debit cards, and more.
Nevertheless, as a business, you must accept cash. Regardless of its popularity, certain individuals still consider cash their primary payment method.
Similar to other countries, BNPL is becoming increasingly popular in the Netherlands. BNPL service providers offer customers the ability to pay for a service/product through easy instalments. This is quite useful when making expensive purchases.
Businesses integrating this payment method can make purchases more lucrative and convenient for buyers. This also could reduce cart abandonments. Common BNPL providers in the Netherlands include Afterpay, and Klarna.
Now that you know what payment methods are popular in the Netherlands, it’s time to integrate them into your business. However, this process is not easy. There are several challenges you might come across when integrating local payment methods. Let’s learn more about them below.
Here are some common challenges businesses face:
While these challenges can give new businesses a hard time, there’s a solution: inai. Let’s learn how inai can help.
Here’s how inai can help:
That’s how inai can help you seamlessly tackle the above challenges and offer all local payment methods in the Netherlands.