The Netherlands is one of the countries in the world with a high internet penetration rate at 95.5%. Hence, it is not surprising that the country is home to a large and an active e-commerce market. To help international businesses enter the Dutch e-commerce market, Paymentwall has compiled monetization tips that will allow you to effectively reach out to online consumers in the country.
The Dutch consumers
With over 10 million online shoppers, the country has a very high purchasing power index at 91.8%. According to E-commerce News, the popular online products that a typical Dutch consumer would purchase are travel bookings/tickets, or those related to telecommunication, computer hardware and software, fashion, games, and online media.
The booming ecommerce market in the Netherlands offers a strong business potential for foreign merchants. To expand your business there, you need to learn how the Dutch consumers pay for their online transactions. When you provide your consumers with comfortable and convenient ways to pay, you will be able to experience increased conversion rates, higher sales, as well as better revenues for your business.
iDEAL payment system
The most popular payment method in the Netherlands is iDEAL, an e-commerce payment system that allows real-time transactions. iDEAL allows customers to pay for goods and services online through their accounts at any of the major Dutch Banks such as ABN AMRO, ASN Bank, Friesland Bank, ING Bank, Knab, Rabobank, RegioBank, SNS Bank, Triodos Bank, or Van Lanschot.
Local companies in the Netherlands such as Wehkamp.nl, Bol.com, H&M and Hema use the iDEAL payments system to facilitate transactions at their online stores. As a result, these companies have made online shopping more convenient for consumers, and have become successful in establishing the country’s largest online stores. To gain a foothold in the local market, foreign businesses should also integrate iDEAL in their payment process to be able to provide their consumers with a seamless, purchasing experience.
With iDEAL payments system being popular, credit cards have taken a back seat when it comes to online payment methods. In 2015, only 18% of online shoppers used credit cards to pay for their purchases, according to Statista. 10% of consumers used Mastercard-branded cards, while 8% preferred cards from Visa.
Alternative payment methods
Alternatives to credit cards or to the iDEAL payment system include prepaid cards, e-wallets and bank transfer. About three in 10 online shoppers in 2014 paid for their purchases using bank transfers, according to Statistics Netherlands. Though prepaid cards and e-wallets are available in the country, they are rarely used by consumers to shop online. For more information on payment methods in the Netherlands, please check this page: https://www.paymentwall.com/en/payment-methods/netherlands
Integrate a licensed payment provider
To reach out to the Dutch online market, international businesses need to integrate a payment service provider that offers a wide range of payment methods, such as Paymentwall. With Paymentwall, foreign merchants can provide iDEAL, as well as credit cards, e-wallets, prepaid cards and other alternative payment methods at their online store. As a result, they can easily establish their presence in the Netherlands, and grow their business in the country.