Market Trends of Netherlands Mobile Payments Industry
This section covers the major market trends shaping the Netherlands Mobile Payments Market according to our research experts:
Rising Trend of Mobile Payment solutions in E-commerce
- Most first-time online buyers now use mobile devices, particularly smartphones, to complete their transactions. Vendors can directly modify direct services to boost sales thanks to the proliferation of data analysis techniques. As E-commerce purchases are more regular, the amount paid through mobile transactions will only increase.
- Due to the rising trend of contactless payment solutions for making payments online, many users are opting for either online payment systems (Internet banking) or Mobile payment solutions, as per the data published by the Dutch payment association factsheet 2021. By the end of 2021, the share of contactless payments with debit cards and credit cards had increased to 87%. By December 2021, almost 25% of all contactless payments were made with smartphones and wearables (with built-in NFC-chip). They are expected to become more common in the future.
- The figures for online credit card payments also reflect that the iDEAL app covers about 70% of the market for online payments in e-commerce; out of 373 million transactions in Netherland in 2021, 108 million were made using smartphones, that's 29% of overall transactions. 52.3 milliom transactions were made using tablets that's 14 % of the overall transaction as per the data by dutch payment association. Credit cards roughly cover about 10% of e-commerce payments.
- Over the coming years, the market expansion is anticipated to continue in the Netherlands. Mobile transactions are expected to rise quickly along with the E-commerce sector, giving the mobile payments business a big boost.
- According to data posted by the EU, 89% of the Dutch population use online banking, that's the third-highest in the EU/EEA Iceland and Norway are the only two countries above the Netherlands. Around 66% of the population use mobile banking in the Netherlands, including 60% of 50-64-year-olds.
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Digital Transformation will Drive the Market
- Digitalization is a fantastic opportunity for the current Covid -19 scenario. It is transforming the world of the profession, corporate structures, and value chains, as well as innovation and market structures. Most industries are switching toward embracing digital ways of retailing for their operations.
- As per the study by the Dutch payment association, almost nine in ten Dutch bank customers use mobile devices (smartphones and tablets) or internet banking (on desktops and laptops) for banking services. In 2021, the use of mobile devices for banking services surpassed internet banking.
- The Dutch Payments Association regulates and monitors the availability of the Dutch payment system. DNB, the Dutch national bank, sets minimum requirements for the availability of contactless and chip-and-pin payment systems. The minimal availability required is set at 99.88%. There are no formal requirements for mobile or internet banking, but Dutch law dictates that online banking services should not be interrupted for more than two hours. The positive mindset of Dutch regulators towards the mobile payment solution making it one of the primary modes of payment, seems to bolster the market for new entrants and consumers.
- Moreover, mobile payments market is expanding as 4G and 5G technologies become more widely used. According to a survey by Ericsson, 5G is already having an influence on smartphone consumers all around the world, including in the Netherlands. Consumer surveys have identified interior coverage as one of the main areas, and one 5G user has already reported a decrease in indoor WiFi phone usage due to the advantages of 5G mobile access.
- The country is focusing more on Mobile banking solution, making it the favorite destination for new entrants and introducing new concepts. For instance, German mobile bank N26, which entered the Dutch market last year, offers advanced functions like investment through a Mobile app apart from regular services like basic retail banking functions like opening a credit card or savings account.
