The number of stakeholders in the Dutch payment system increased in the course of 2018. This was mostly due to new legislation and regulations, further digitization, the rise of mobile payment apps and the preparations for Instant Payments. The annual report for 2018 of the Dutch Payments Association outlines the need for continued cooperation on non-competitive aspects of payments in the face of increasing competition and fragmentation.
PSD2 and GDPR
The introduction of the General Data Protection Regulation (GDPR) and the revised Payment Services Directive (PSD2) dominated the development of the Dutch payment system in 2018. The most important provision of PSD2 is that all European banks must give other regulated service providers digital access to the payment accounts of customers who give their consent. Other service providers can initiate payments or request information about the balance and transactions with the consent of the account holder. The GDPR particularly affects PSD2 account information services. “Although in the Netherlands PSD2 only came into effect this year, it caused significant social debate between academics, journalists, consumer organizations, industry organizations, MPs, regulators and other stakeholders in 2018,” says director Piet Mallekoote of the Dutch Payments Association.
Mobile technology, Instant Payments and digitization
Most credit transfers and online payments are now initiated from a smartphone or tablet. This puts the Netherlands at the forefront of Europe. With smartphones, consumers increasingly pay to friends and family, often through easy payment requests via social media. In 2018 a several new service providers for mobile payments were launched.
By the summer of 2019, all customers of seven Dutch banks can make credit transfers via mobile banking and internet banking within 5 seconds, also to recipients at banks other than their own and also at night, during the weekend and on public holidays. The Dutch Payments Association oversees the collective development and implementation of Instant Payments in the Netherlands. Most European countries are ready for Instant Payments. The Netherlands distinguishes itself through its large-scale collective approach with all stakeholders. Existing and new payment service providers prepared for Instant Payments in 2018, prior to the rollout this year.
The use of the debit cards and credit cards continues to increase, also for refunds from retailers to consumers. As a result, there are fewer and fewer cash payments at points of sale. Contactless payments (Tap&Go) and the range of wearable payment instruments – such as smartphones and jewelry – continue to grow. In 2018, more than half of all Dutch debit card payments were contactless.