A comprehensive overview of the cards, payments and consumer banking market in theNetherlands, with clearsighted commentary backed by historic and forecast data.
E-commerce has grown strongly during the pandemic, a boon for leading payment method, iDEAL.
Over 80 percent of card payments are contactless as of 2020, with some one-in-ten such transactions carried out by mobile devices or wearables in the previous year.
Mobile and online bank transfers are now handled entirely via the new Instant Payments system. BNPL platforms meanwhile have trebled their acceptance rate at Dutch websites.
How debit cards are faring as payment apps rise.
What it is that is undermining credit card profitability.
How iDEAL has evolved since its 2016 launch.
Who the main players are now in merchant acquiring.
Why credit cards remain suppressed.
TABLE OF CONTENTS
Demographics and the economy
Netherlands cards market
Key retail banks and issuers
Acquiring and processing
Regulatory and other cards market information
Appendices: Card Payments Data
Appendix I: Demographics and the economy
Appendix II: Payments environment
Appendix III: Cards market data
Appendix IV: Mobile payments data
Appendix V: Profit pool
Appendix VI: Card networks
Appendix VII: Key retail banks and issuers
Appendix VIII: Acquirers and processing
Appendix IX: Online acquiring data
Demographics and Economy
The Netherlands is the second-largest agricultural-products exporter in the world, after the US, with the sector accounting for over half of the country's trade surplus. Export growth is forecast to be lower in 2020 due to the pandemic.
The Dutch payments ecosystem is highly advanced: cash usage is in decline while the penetration rate of electronic payments is increasing . . . innovations such as contactless and mobile payments are being rapidly adopted by consumers.
Debit cards dominate the Dutch payment cards market, with about 28 million debit cards in circulation at the end of 2019. The use of debit cards for low-value payments has accelerated since the introduction of contactless technology.
Mobile payments are growing significantly in the country for both online and in-person transactions. According to the Dutch Banking Association, one in ten contactless transactions were carried out by mobile devices or wearables in 2019.
Verisk Financial Research's profit pool analysis illustrates a steady decline in credit card revenues in recent years as the unsecured lending market has migrated to personal loans.
Credit cards remain a niche product in the Netherlands due to a consumer aversion to borrowing, strict regulation of consumer credit and their limited use as a payment tool. Mastercard is the dominant player in the Netherlands' debit cards market.
Key Retail Banks and Issuers
Retail banking in the Netherlands is dominated by a Big Three: ING, Rabobank and ABN AMRO. In terms of branches, Rabobank is the largest, followed by ING. At the end of 2019, a total of 46 banks were operating in the country, with some 1,260 bank branches and almost 6,000 ATMs.
Acquiring and Processing
The acquiring market has been impacted by the wave of consolidation in the industry in recent years. The most significant deal here in recent times involved Equens, Paysquare and Worldline.
Internet penetration in the Netherlands is high: according to the local e-commerce industry body, Thuiswinkel, 96% of Dutch adults made at least one online purchase in 2019.
Regulatory and Markets Information
The European Central Bank has become the central prudential supervisor of financial institutions in the Eurozone and hence the role and position of the De Nederlandsche Bank in the Netherlands has changed.
Autoriteit Financiële Markten
Bank Giro Central
Bank of America
Bank of Beijing
De Nederlandsche Bank
Dutch Payments Association
European Central Bank
European Merchant Services
International Card Services
KLM Royal Dutch Airlines
Mid-State Bank & Trust
Netherlands Authority for the Financial Markets
Pacific State Bank
Royal Dutch Touring Club
Single Supervisory Mechanism
SIX Payment Services
Transaktioninstitut für Zahlungsdiensleistungen
Verisk financial reports include detailed market and competitor intelligence on payments cards, e-money, acquiring, retail banking, and consumer credit in Europe. Analysts use primary and secondary source data and conduct in-depth interviews with senior industry executives and finance experts.
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