iDEAL

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Summary: iDEAL is an account to account digital wallet for online and in-app purchases operating in the Netherlands only and launched in Oct 2015. iDEAL is based on online banking and allows its customers to buy on the Internet using direct online transfers from their bank account
Website: https://www.ideal.nl/en/
Status: Live
Market: The Netherlands (Oct ’05)
Type: Bank Consortia
Ownership: iDEAL is owned by the Dutch organization Currence, which was founded on 1 January 2005 through an initiative by eight Dutch banks (ABN AMRO, Rabobank, ING Groep, Fortis, SNS Bank, BNG, Friesland Bank and Van Lanschot)
Functions: Retail payments only
Payment Mode: Account to account based
Channel: In-App and WEB
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Registration & set up: Consumers with supported online banking can directly use iDEAL. No need to register separately. If user is interested in using QR code, user should download the app, which is available on App Store and Google play

Making a payment: During the payment process, consumers will be urged to give an agreement for a payment within their internet banking environment. The amount will be charged directly from their account within a few seconds. Authenticate with PIN code. It also supports QR code-based payments. After scanning the QR code, everything is equal to an iDEAL payment through the app or online banking. QR code can just be scanned with iDeal app [/otw_shortcode_content_toggle]

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Merchant perspective: Consumer login and registration with the Merchant should have taken place before selection of the iDEAL payment method by clicking the iDEAL button. To offer iDEAL as a payment, merchants must take an iDEAL agreement with one of the participating banks or collecting a Payment Service Provider (CPSP). iDEAL in merchants’ webshop is directly linked to the systems of their bank or PSP. This means that once iDEAL is connected, Merchant will charge to all users of Internet banking by the participating banks in their shops. The payment is cleared immediately and depending on the consumer’s bank, merchants will receive non-cash credited within 1 to 2 days to their accounts
Security: iDeal is based on online banking and uses the same security techniques [/otw_shortcode_content_toggle]

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Strategy: iDEAL offers a payment service to CPSP (Collecting Payment Service Provider), who are charged by iDEAL for obtaining its license as a payment service provider. On the other hand, banks and CPSPs charge merchants for using its services
Payee fee: Mercharnts are charged. The fee depends on the participating bank or PSP (Payment Service Provider) chosen by the merchant, as fees can vary depending on the provider
Payer fee: No charge for consumer [/otw_shortcode_content_toggle]

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Launch date: The Netherland (Oct ’05)
Closed Date: N/A
Users: 10 million (source: https://www.ideal.nl/en/)
Retailers / merchants: Over 100,000 (source: https://www.currence.nl/producten/ideal/)
Transaction volume: iDEAL was used more than 222 million in 2015. Since its market introduction in October 2005 the total number of iDEAL payments reached 917.5 million. On average, more than 19 million iDEAL payments are made per month (source: https://www.ideal.nl/en/actueel/ideal-payments-catapulted-in-2015/)
Transaction value: € 18 billion in 2015 (source: https://www.ideal.nl/en/actueel/ideal-payments-catapulted-in-2015/)
Other data points: For several years, iDEAL has consistently ranked among the top 10 strongest and most indispensable brands in the Netherlands. Last December, 23% (5.2 million) of the total number of iDEAL payments was made via mobile banking apps (source: https://www.ideal.nl/en/actueel/ideal-payments-catapulted-in-2015/)
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Links:
https://www.ideal.nl/en/actueel/ideal-payments-catapulted-in-2015/
https://en.wikipedia.org/wiki/IDEAL
https://www.currence.nl/producten/ideal/
Media:

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