Piet Mallekoote, CEO of the Dutch Payments Association, spoke to EDC’s Samee Zafar.
Tell us a little bit about iDEAL? Why did iDEAL succeed in the Netherlands?
iDEAL was created in 2005 on the request of e-commerce merchants to facilitate online banking payments more customer friendly, smoother and more trusted. Before 2005, each bank had its own standard and different features. Because iDEAL was built on what already was in place (internet banking, credit transfer) adding a simple redirect protocol, the iDEAL service leverages on this infrastructure offering low fees to merchants. There are currently 12 banks, 60 PSP’s, merchant- and consumer organisations within the iDEAL ecosystem that seen tremendous growth (see graph).
Also, iDEAL is, overwhelmingly, the instrument of choice for internet payments in the Netherlands (See pie chart) with a 60% share.
Do you see alternative payments particularly iDEAL also extend to the physical POS channel at some point?
At the recent Money20/20 in Amsterdam, we launched the iDEAL QR. This allows customers to pay quickly, accurately and reliably with their smartphone by simply scanning the iDEAL QR code. This could be used to process invoices (customers tend to pay invoices much quicker with QR codes) but also on the physical POS channel, for buying tickets or for charity boxes (donations). Currently, we are working on a project to make low-value payments easy and frictionless. Although contactless cards have a strong position at the POS, we think in some specific situations, iDEAL QR could be a perfect alternative for card payments or cash.
What do you do in your spare time? How do you relax?
I like running, cycling and fitness training a couple of times a week. This keeps me (hopefully) healthy. Further, I notice often that I lack time for reading. I am an avid reader and every time I finish a book, I feel I have reached a new milestone. Work keeps me busy, but relaxing is important to sharpen the senses and to stay alert. And, of course, I’m very much looking forward to the holiday period.
What are your personal goals for the next 12 months?
I’ve not yet set specific personal goals for the next months, although I feel some pressure to write a book at some point. Next 12 months could be a starting point for that. My biggest struggle, as always, is with time.
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