Payments in 2016: innovative, stable and secure

Payments in the Netherlands in 2016 were characterised by extensive digital innovation, high availability across the various payment chains and very low fraud losses. The Dutch Payments Association’s 2016 annual report (in Dutch), published today, outlines developments that put the Netherlands among Europe’s leaders in payment speed, convenience, reliability and security.

The digitisation of payments continued in 2016. Various service providers introduced innovative apps and online payment services. Banks launched services including iDIN , which allows consumers to identify themselves online to other organisations using their own bank’s secure and familiar login method. Some providers developed mobile apps that allow individuals to pay each other quickly, easily and securely, often using iDEAL . The sector’s innovative strength also led to the introduction of digital direct debit mandates (in Dutch) and iDEAL QR (in Dutch) in 2016. iDEAL QR codes make it easy and secure to pay paper invoices, donate to street collectors and settle restaurant bills using a smartphone.

Paying anytime, anywhere

The electronic payment chains for debit card payments (in Dutch) , iDEAL, online banking and mobile banking were more stable than ever before. Despite a continuing increase in both providers and users within these payment chains, there were fewer disruptions than in previous years.

Of every 1,000 debit card transactions in 2016, 998 succeeded immediately on the first attempt. Online and mobile banking were available 99.7% of the time between 7 am and 1 am in 2016, compared with 99.6% in 2015. iDEAL achieved comparable availability in 2016: 99.66% between 6 am and 12.30 am (in Dutch) .

This high availability is due in part to the constant attention that all participants in the payment chains give to preventing disruptions. The Dutch Payments Association monitors the stability of the payment chains and facilitates effective coordination, information sharing and smooth cooperation among all participants.

Fraud losses historically low

Payments using debit cards, smartphones, iDEAL, online banking and mobile apps are growing by double-digit percentages each year. Nevertheless, banks’ losses from fraud involving electronic payment methods fell by no less than 43% in 2016 compared with the previous year.

Bank customers are less easily deceived, partly thanks to the Dutch Payments Association and banks’ joint awareness campaign, “Hang up, click away, call your bank! (in Dutch) ”. Banks and payment institutions also invest continuously in better monitoring and detection of fraudulent payments. This helped reduce total losses from malware in online banking to well below €1 million in 2016, at €800,000. No fraud at all was recorded through Dutch banks’ mobile apps last year.

Cooperation between payment service providers, public authorities and cybersecurity companies, together with mutual sharing of knowledge and information, is the key to securing payments successfully. Within the National Cyber Security Centre (in Dutch) and the Financial Institutions Information Sharing and Analysis Centre (in Dutch) , this cooperation focuses primarily on preventing cybercrime through effective monitoring and detection.

Acceptgiro to remain for now

The processing of Acceptgiros (in Dutch) was due to end on 1 January 2019, but that end date has been postponed indefinitely. Charities and some consumers still use the paper Acceptgiro relatively frequently.

Meanwhile, the migration to better and more efficient alternatives to the Acceptgiro continues. The Dutch Payments Association and the banks continue to advise Acceptgiro users to replace this outdated paper payment method, for example with digital direct debit mandates or smart use of iDEAL.

Good access to cash

The number of bank ATMs is gradually declining, as is the number of bank branches with cash services. Nevertheless, the National Forum on the Payment System (in Dutch) found that access to cash remained good in 2016. The Dutch Payments Association and the banks remain committed to keeping cash available and accessible, including in sparsely populated areas.

Download the Dutch Payments Association’s full 2016 annual report (in Dutch)…