Online payments—we all do them. iDEAL has become an indispensable part of online shopping. However, we’ll have to say goodbye to it soon. What will this mean for you as a consumer or website owner when iDEAL disappears? We’ll break it down in this blog post.
What is iDEAL?
iDEAL is a Dutch payment system that was launched in 2005. At that time, there was no payment method that was widely accepted and had low transaction costs, which is particularly important given the ever-increasing number of online sales. At the time, users and online stores could choose from a wide range of online payment systems, such as Rabo Direct Betalen, KPN’s Switchpoint, and ABN Amro’s eWallet. In 2004, several major Dutch banks announced the arrival of iDEAL, which was already being used for online banking. This new system eliminated uncertainty and confusion among consumers. In 2006, the system was transferred to Currence, and in 2023 it was taken over by the European Payments Initiative: a European collaboration of banks. However, the plan is for iDEAL to be phased out by 2026. You can already see a number of changes to the payment method.
According to the system itself, about 70% of all e-commerce transactions in the Netherlands are paid for using iDEAL.
Why is iDEAL being phased out?
Last year, iDEAL was acquired by another entity: the European Payments Initiative (EPI). They are currently developing a completely new payment system across Europe called Wero. Furthermore, the current version of iDEAL is outdated and no longer meets the future requirements of the EPI. The changes that have already been implemented and those planned for iDEAL ensure that the system complies with European directives and is future-proof. The new version of iDEAL is more flexible and can thus more easily adapt to new technologies until Wero is fully ready for implementation.
A number of changes have recently been implemented within iDEAL: you can now select your bank on an iDEAL payment page that remains consistent. You can also create a profile with your preferred account and address information. This way, the request is sent directly to your bank’s app, making ordering and paying even easier. Additionally, this eliminates the need to re-enter your information every time.
Other changes include iDEAL becoming an open standard: more parties, such as banks and payment providers, will be able to offer the system. This could lead to increased competition and lower costs for consumers. There is also a new iDEAL QR code. You can scan this code with your smartphone to make a payment easily. Finally, third-party verification has also been introduced. The payer’s bank must verify the payment before approval, making online payments safer.
What are the implications for your website or online store?
The discontinuation of iDEAL will have consequences for all consumers and businesses that use it. For instance, businesses will need to adapt their websites and payment systems to accommodate the new payment method. In a few years, the system will transition to Wero. We’ll have to wait until the major payment processors (Mollie, Adyen, etc.) have Wero available as a payment method. For a WooCommerce store, you likely won’t need to set up the integration yourself. For now, we’ll have to wait until there’s more clarity about the system. The payment service must be at least as robust as iDEAL before the switch. No features should be missing, and there should be no reduction in security surrounding online payments. Wero is expected to be available in 2026.
Was your online store developed by JKC? If so, we’ll make sure it’s implemented correctly at launch.
