The 4 most chosen payment methods in the Netherlands
Online payment methods are very important nowadays. But which payment methods are most chosen in the Netherlands and why?
Online webshops are popping out of the ground like mushrooms. Online payment is therefore an indispensable part of our society. The more difficult the choice, which payment methods you should offer in your webshop. That is why we have listed the 4 most chosen payment methods in the Netherlands for you.
iDEAL is at the top of the list of most chosen payment methods in the Netherlands. In 2019, 667 million payments with iDEAL were completed. Not without reason, nowadays paying with iDEAL is easier than ever. You log in to your internet banking and immediately approve the payment. Ideal! Or not?
You pay the order in advance with iDEAL. Since the payment is treated as an “active” bank transfer, you can – not even if the webshop defaults – claim your money back via the bank. An ideal payment method for the webshop owner, but not for the consumer when it comes to security.
Are you a consumer and do you regularly pay with iDEAL? Then do this at a webshop that appears reliable. Read our article here how you can recognize a reliable webshop.
Paying by credit card is less common in the Netherlands compared to countries such as the United States (US). In the US people practically live off their credit card, we are not used to that in the Netherlands (luckily). Yet this payment method is in second place of most chosen payment methods in the Netherlands. But why?
Credit card companies such as VISA and MasterCard, give a guarantee on the purchase. This means that you as a consumer – provided you can demonstrate this – are entitled to a refund because the webshop is in default, they will refund the money to you. Most credit card companies protect consumers against internet fraud, making it a safer payment method. You can see in the figures that credit card is often used for larger purchases.
3. Klarna / AfterPay / Billink
In other words, pay afterwards. Basically the most secure payment methods. You order first, receive the package at home and then an invoice with a 14-day payment term. In other words, don’t you trust it completely? Then you can easily pay with one of these payment methods.
There is also little risk involved for the webshop owner, provided you work with one of the above parties. They guarantee that you will be paid the full purchase amount from them, within x number of days. In addition, the fact that you offer a post-payment option already gives you confidence. As a result, consumers are more inclined to pay with iDEAL. A win-win situation!
However, paying afterwards is not entirely rosy. The above parties mainly facilitate the payment method, but are not intermediaries. Should a dispute arise between the webshop and the consumer, the webshop owner remains in charge. This determines whether or not the payment is credited. Pleasant for the webshop owner, slightly less for the consumer.
Last but not least, the moderately popular PayPal. A payment method that is gaining popularity, but does not yet have many users in the Netherlands. In 2016, PayPal had only 2 million users in the Netherlands.
PayPal is an online wallet, often the English term “wallet” is used. You can do various transactions with it: top up (literally place money in your wallet) or link a bank account or credit card.
If you have not linked a bank account, you can only pay with PayPal if you have money in your wallet. Have you linked a bank account or credit card? Then in some cases you can make a payment, which is then automatically – by PayPal – debited from this bank account or credit card. The latter depends on what the webshop accepts. Most webshops only accept an upgraded balance, because this has the least risk for them. A PayPal transaction can be recalled via the bank and credit card, as a result of which the webshop owner still misunderstands. That can be very frustrating!
Are you a webshop owner and do you want to offer PayPal? Make sure that this “automatic debit” variant is turned off, this will prevent a lot of problems.
Finally, consumers who have paid with PayPal can file a claim that they do not agree with the charge for any reason. If you as a webshop owner cannot provide sufficient evidence that this issue is unjustified, the consumer is always in the right. In that case you will still lose your money.
There are some other payment methods in the Netherlands, but these are not worth mentioning. However, we recommend that you offer all the above payment methods in your webshop. The more supply, the greater the chance that the conversion of purchase will be high. That way you keep everyone happy.
However, pay attention to the rates, these can vary considerably per payment method. iDEAL Is the most advantageous payment methods in the Netherlands with an average rate of €0.20 to €0.40 per transaction. In case of very large volumes, sometimes even €0.10 or less is charged.
PayPal and credit card, on the other hand, charge a percentage of the order amount and fixed transaction costs. The percentage of credit card is between 1% and 2.5%, where the fixed transaction costs are between € 0.50 and € 2.00.
Payment providers in the Netherlands
There are a number of payment providers in the Netherlands that can provide you with the above payment methods. Woosa currently has a partnership with Adyen, for which we have also developed the WooCommerce plugin.
Whichever payment provider you choose, most support WooCommerce as a webshop platform. However, the choice is yours, what you choose: the best price, service or technology? If you want everything, then of course you choose Adyen 😉