In the Netherlands, iDEAL is the most popular online banking payment (before the card payment method). Created in 2005, the total amount of the transactions processed in 2016 is 1 billion which represent 60% of the market share in the country.
This payment method has been created and launch by a consortium of Dutch big banks: with 11 participating banks, iDEAL covers the major part of online banking in the Netherlands.
Based on Sepa Credit Transfer (SCT), iDEAL payments can be done into any IBAN bank account in Europe.
How does it work?
SlimPay offers the activation of Direct Debit through an iDEAL transaction by using the initial transaction as a consent to sign a mandate and allow recurring payments. It is more secure for the end-customer, payments are guaranteed and irrevocable.
It is based in generating a prefilled Credit Transfer (SCT) that the consumer validates and signs on his bank website (redirection from iDEAL to the appropriate bank) in order to confirm the transaction.
To process iDEAL transactions, the following steps are required:
- User selects payment method on SlimPay Checkout screen
- User is redirected to his/her bank login for authentication (the bank's authentification acts as a mandate signature
- User authorizes a 0,10€ iDEAL transaction
- If successful, user is redirected to SlimPay success screen
- Signed Direct Debit mandate is sent by email
Timeline and cut-off times: If the SCT is triggered before 3pm, the amount is available for the merchant on D+1; if the SCT is triggered after 3pm, the amount is available for the merchant on D+2.
Possible uses cases
User set up a subscription by paying a 0,10€ symbolic transaction. A mandate is signed and the first payment will be processed at the due date.
|User set up a subscription and directly process to a first payment by SEPA Credit Transfer|
|The merchant proposes several SDD payment methods and the end-consumer can choose his preferred payment method||The end-consumer has no choice left; he must pay through iDEAL|
SlimPay acts as a super merchant: being your unique payment partner to support your activity with iDEAL payments. SlimPay takes care of everything as:
- Secured authentication for the consumer: only the account holder can proceed to the payment
- Reduced risks of chargebacks thanks to payment by SCT (more efficient for the merchant)
- Compliant with PSD2
- Enhanced consumer engagement (regular and alternative payment methods directly integrated on the Checkout page)
- Preferred payment method in the Netherlands; it provides a user-friendly experience for the consumer and a greater conversion for the merchant.