In 2023, Benelux’s e-commerce sector showcases a medley of payment methods, mirroring evolving consumer preferences. Belgium leans towards card payments with Bancontact leading, while Luxembourg favors cards and e-wallets. The Netherlands have a preference for bank transfers via iDEAL. The emergence of Buy Now Pay Later (BNPL) and digital wallets across the region further enriches the payment landscape, offering a glimpse into the dynamic e-commerce payment ecosystem in Benelux.
Payment by card in Benelux
In 2023, various payment trends emerge in the Benelux region’s e-commerce sector. In Belgium, credit and debit cards play a significant role. Specifically, 32% of online payments occur via credit card, while 30% of shoppers prefer using debit cardsβ1β. Moreover, compared to other regions, Belgians use debit cards for e-commerce relatively moreβ2β. Significantly, Bancontact outpaces Visa or Mastercard for both POS and e-commerce transactions, holding an 80% market share in 2021β3β.
Transitioning to Luxembourg, card payments dominate, accounting for 27% of total payments. Following this, e-wallets cover 10% of orders, and cash only 6%β4β.
The scenario in the Netherlands remains less clear due to limited data. However, across all three countries, card payments are a preferred method for money transfers, hinting at a common trend in the e-commerce payment landscapeβ5β.
Local actor: Bancontact
Payment by bank transfer
In 2023, varied payment preferences appear in Belgium, the Netherlands, and Luxembourg’s e-commerce sectors. In Belgium, bank transfers constitute 17% of e-commerce payments, indicating moderate usageβ1β. Another source corroborates this, listing a close figure of 19%β2β. Transitioning to the Netherlands, the scenario shifts. In 2020, bank transfers covered 60% of e-commerce payments, thanks to the local iDEAL system’s popularityβ3β. Over 60% of Dutch respondents recently used iDEAL for online shopping, showcasing its acceptance. Additionally, 40% prefer it as their top online payment method, reflecting a strong bank transfer preferenceβ4β.
On the other hand, Luxembourg has its own payment landscape. Domestic bank transfers rank as a top e-commerce payment method, suggesting significant usageβ5β. The payment spectrum in Luxembourg is broad, with bank transfers alongside other instruments like cheques and cardsβ6β.
Overall, the data reveals a notable bank transfer payment presence across these countries, with distinct preferences in each. The pronounced iDEAL system preference in the Netherlands especially stands out, highlighting the country’s bank transfer payment inclination in e-commerce.
Payment by installment and BNPL
In 2023, Buy Now Pay Later (BNPL) emerges as a significant payment method in the Benelux region’s e-commerce sector. In Belgium, it’s termed as “Deferred Payment Methods.” This method allows consumers to spread payments over time, aiding their financial management. It also benefits merchants by expanding their customer base. However, it faces regulatory scrutiny since it can qualify as consumer credit under European/Belgian law, potentially encouraging overspendingβ1β.
Transitioning to the Netherlands, BNPL sees remarkable growth. A projected increase of 23.3% in BNPL payments is expected, reaching $9.338 billion in 2023. Various BNPL apps are available, indicating a robust market. Klarna, a global player, almost reached one million downloads in 2022 in the Netherlands, showcasing its dominanceβ2ββ3ββ4β.
In Luxembourg, data is less specific. Nonetheless, BNPL’s traction within the financial sector is notable. It’s perceived as a credit model, potentially making vulnerable consumers more susceptible. Moreover, BNPL increases e-commerce conversion rates by 20 to 30%, indicating its growing importanceβ5ββ6β.
Across Benelux, BNPL is evolving, contributing to the diversification of payment methods in e-commerce. Klarna, along with other global players like Clearpay, Scalapay, and Alma, significantly influence this market, overshadowing local brandsβ7ββ8ββ9β. The Gross Merchandise Value of BNPL in Europe is expected to grow at a CAGR of 11.4% from 2023 to 2028, reflecting a steady adoption of this payment methodβ10β.
Local actors:
for B2C,Riverty (previously Afterpay), Billink
for BtOB, Biller (BtoB), Sprinque (BtoB)
Payment by digital wallet and X-Pay
In 2023, e-wallet payment popularity surges in Belgium, the Netherlands, and Luxembourg’s e-commerce sectors. In Belgium, a government initiative launches, issuing digital wallets to citizens for official businessβ1β. This move demonstrates a governmental push towards digitalization. Transitioning to the Netherlands, diverse digital wallet options surface, securely storing credit card and bank details for easy payment processingβ2β. A forecast suggests a continued mobile payment usage up to 2023, reflecting growing consumer interestβ3β.
On the other hand, Luxembourg sees a rise in innovative services like e-money issuance and e-wallets, both domestically and internationallyβ4β. These services are part of a broader shift towards digital payment solutions in the region. Overall, the e-wallet trend in Benelux aligns with the global shift towards digital payment methods, offering a convenient, secure alternative in e-commerce.
Local actors: Tikkiβ¬, Bancontact, OK, iDeal
Payment methods in Benelux interesting you?
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