iDEAL is a Netherlands-based payment method that allows customers to complete transactions online using their bank credentials. All major Dutch banks are members of Currence, the scheme that operates iDEAL, making it the most popular online payment method in the Netherlands. iDEAL redirects customers to their online banking environment to authenticate a payment using a second factor of authentication and there is immediate notification about the success or failure of a payment. The exact customer experience depends on their bank.
iDEAL enables direct and secure real-time online payments between bank accounts of Consumers and iDEAL Merchants. The main characteristics of iDEAL are:
- Real-time payment through accepted and trusted Internet banking that is already familiar to Consumers
- Real-time payment authorization for the Consumer and real-time confirmation to the Merchant by the Acquiring bank, followed by the irrevocable transfer of funds to the Merchant
- Suitability for online delivery (e.g. downloads, mobile top-ups), offline delivery (e.g. goods) and time-critical payments (e.g. airline tickets)
- Offers the flexibility to make payments for many different purposes (e.g. charitable donations, telephone/e-mail orders)
In practice, nearly every Consumer that uses Internet banking with one of the Issuing banks that support iDEAL can pay with the iDEAL payment method.