Market Trends of Netherland Payments Industry
Rising users of Digital Payments in Online Sale
- The payment market in the Netherlands is facilitating the transition to a cashless society. Mobile payment innovations, contactless payments, and the closure of ATMs are all signs of a shift away from a cash-based economy. The global pandemic has accelerated this further, where contactless payments are perceived as faster and cleaner. The Netherlands is a pioneer in the adoption of a cashless payment environment.
- Bank transfers dominate the Dutch e-commerce payments market due to iDEAL. According to a survey conducted by Rapyd, 60% of Dutch people have recently used the iDEAL platform, and 40% use this platform as their preferred online platform for payments. Payments are made through the iDEAL mobile app or the customer's online banking website. As all Dutch central banks support the method, it provides consumers with the convenience and speed of delivering pre-filled payment information.
- The Netherlands is heavily reliant on credit transfers, also known as giro payments. Cheques are rarely used for remote or point-of-sale payments anymore. The vast majority of Dutch households and businesses have multiple payment accounts. Further, the gradual decline in the number of bank branches and ATMs and the rapid increase in the number of payment terminals at points of sale represents a change from cash to electronic payments.
- The overall number of Dutch people using online and mobile banking was 85.7% in 2022. For banking services, young people between 25 and 35 years old are the most likely to use a computer or cell phone. In contrast, Internet banking accounted for about 58 percent of people aged 75 years and over.
Understand The Key Trends Shaping This Market
Download Sample
Increasing Internet Penetration in the Netherlands is expected to drive the market growth
- Connectivity and internet use have increased in the Netherlands, increasing the availability of online goods, services, and intermediaries to support this growth. This also demonstrates that the Dutch digital economy assists citizens in becoming connected and using the Internet to consume online services and initiate online transactions.
- According to the World Bank, the number of individuals using the Internet in the year 2021 stood at 92%, which was an increase of 1.08% from the year 2020. This increase in the use of the Internet led to online shopping, and in 2021, around 87% of the population bought goods from the online platform for personal use.
- According to DataReportal, the Netherlands' internet penetration rate stood at 96.0 percent of the total population at the beginning of 2022. Ookla's data reveals that the median mobile internet connection speed in the Netherlands increased by 12.08 Mbps (+14.6 percent) in the twelve months to the start of 2022. Meanwhile, Ookla's data shows that fixed internet connection speeds in the Netherlands increased by 15.38 Mbps (+18.9 percent) during the same period.
- Moreover, the Netherlands became the first country to launch fully contactless public transport payment systems nationwide. In June 2023, the Netherlands completed the launch of a contactless transit payments system nationwide, simplifying access and allowing travelers to tap in and tap out with their debit card, credit card, or digital wallet. Mastercard was a crucial part in the introduction of OVpay, joining forces with joint public transportation undertakings and TransLink to support domestic banks as they implemented their mobility transaction processing rules.
