The most successful online payment system in the Netherlands
iDeal is an online payment system developed in the Netherlands that analysts believe is set to become popular throughout Europe. Established in 2005 by the big Dutch banks, it allows on-line shoppers to authorize payments from their current account through the online banking service of their own bank. Consumers like the system because they regard credit and debit card payment as insecure, and iDeal allows them to finalize a transaction immediately in a familiar Internet banking environment without having to re-key their details. Retailers value the fact that iDEAL offers them real-time, guaranteed and irreversible payment, at a lower cost than credit cards, and with no charge-back risk. It has proved so popular with consumers and retailers alike that it has become the most successful online payment system in the Netherlands within just three years, with nearly half of Dutch Internet users making use of it. Currence, a Dutch company that licenses iDEAL and other payment products - PIN, Chipknip, Acceptgiro and Incasso/Machtigen – is exploring the scope to introduce the iDeal system in France, Italy, Spain, Ireland and Finland, where online payment systems have yet to become multi-bank. iDeal is also party to discussions with other e-payment service providers in Europe and North America to defi ne the standards which would enable systems in different countries to inter-operate.