Surge in e-invoicing powers Netherlands eCommerce growthThe Netherlands tied with Italy for fastest growing European eCommerce market in next five years
October 25, 2017
25th October 2017 – Amsterdam — The Netherlands is projected to be the joint-fastest growing eCommerce market in Europe over the next five years, according to a new report from leading payments company Worldpay.
In its annual Global Payments Report, Worldpay found that the Netherlands’ eCommerce market is forecast to grow by 14 per cent annually and is expected to be worth EUR€36bn (US$43bn) by 2021, tying with Italy for the highest rise of any EU country analysed in the report.
The country’s strong growth is being powered by the rise of new payment methods such as e-invoices1 and e-wallets together with a sharp decline in bank transfers, which today is the most popular way of paying for goods and services online in the Netherlands.
The Netherlands is unusual within the EU for its popularity in bank transfers. In 2005 the country introduced iDEAL, an eCommerce payments system that enabled citizens to pay for goods and services online via direct transfers between bank accounts.
According to Worldpay’s report, in 2017 bank transfers accounted for 60 per cent of the Dutch eCommerce market, but this is set to fall by over a quarter over the next five years to under 45 per cent. In its place, Dutch consumers are increasingly likely to adopt alternative payment methods such as e-invoices, which are projected to more than double from 8 per cent to 16 per cent of the market, and e-wallets, which are due to rise from 8 per cent to 10 per cent.
Debit cards and pre-paid cards are also forecast to double in popularity in the next five years, with both payment methods increasing from 4 per cent to 8 per cent.
Commenting on the research, Rogier De Boer, VP of Business Development in EMEA at Worldpay said: “The Netherlands was one of the first markets in the world to embrace alternative payments specifically designed for eCommerce, like iDEAL. While bank transfers are expected to remain strong, especially compared to other EU countries, there is a possibility they may lose significant market share over the next five years as consumers explore other options.
“As recently as 2015, bank transfers accounted for a massive 71 per cent share of the market. One explanation for this forecasted loss of market share is the rise in mCommerce, which is set to grow by nearly 20 per cent in 2017 alone. It is likely that consumers are searching for payment technologies that integrate better with their mobile device, so they can shop for goods and services on the move.
“The payments landscape in the Netherlands is set to become much more diverse in the next five years, so retailers and merchants should consider providing the widest possible choice of payments options, and offer bank-based payment options alongside e-wallets and more traditional card-based methods to ensure that they satisfy the biggest proportion of consumers,” concluded De Boer.
Worldpay has published a list of guidelines for merchants looking to capitalise on the global eCommerce and mCommerce opportunity:
- One-click ordering: Consumers are more likely to shop more often with companies that save their payment details for one-click ordering. Merchants should provide one-click ordering to make online checkout as seamless as possible - especially via mobile apps.
- Consider the most popular payments methods in each territory, and prioritise those that complement your business model - there is no one size fits all in Europe so you will need to understand the best options for your company.
- Cross-border trade: Merchants should ensure that they have local acquiring capabilities wherever they have a legal entity, offer a wide range of currencies at checkout and consider local language customer support in their customers' time zone to deliver a great shopping experience.
About the 2017 Global Payments Report
This report was compiled using a mixture of primary and secondary data sources. Primary refers to our own surveys and commissioned research; whereas secondary refers to authoritative third-party vendor data, and other publicly available data. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions. The eCommerce projected growth figures contained in this report were sourced from GlobalData’s E-Commerce Analytics database and relate to the eCommerce industry as a whole, not Worldpay’s business. GlobalData collected this data using consumer surveys, B2B surveys and desk research. Any indicative predictions based on the data we have used should be treated as such.
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to around 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world. Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types. For more information, visit http://www.worldpay.com/global/about/regional-expertise/emea
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1e-invoices: When using e-invoices, consumers can pay for goods after delivery, without sharing Credit Card or bank details. It can be as simple as entering their email address and postcode to make a payment. Industry examples include paying through Klarna or AfterPay