According to research undertaken by GfK, the market research company in conjunction with iDeal, the leading Dutch payment service provider and Thuiswinkel.org the Dutch ecommerce website, Dutch shoppers use of smartphones for purchases has increased by 68% from 2015 to 2016.
The full breakdown is as follows:
- iDeal Payments – 57%
- Credit Card Payments – 12%
- Direct Debit Payments – 6%
- Paypal Payments – 5%
- Bank Transfer Payments – 5%
- Pin Transaction Payments – – 3%
- Gift Card Payments – 3%
- Payment Order Payments – 3%
- AfterPay Payments – 3%
- Other Methods of Payments – 3%
According to the research, the total online market in the Netherlands has grown by 22% from 2015 to 2016 when looking at the total number of purchases online, with 142 million purchases made in 2015 and 174 million being made in 2016. The ways that people pay for their online purchases in the Netherlands has not seen a great deal of change though, with leading Dutch payment provider iDEAL retaining the majority of the market share, increasing it slightly from 56% to 57%. The other point of interest in how people are paying online in the Netherlands is the growth of AfterPay from 2% to 3% from 2015 to 2016 whilst Giro has seen its share falling from 4% to 3%.
Whilst the ways people are choosing to pay online in the Netherlands are not seeing a great deal of change, the technology that the Dutch are using to shop online is seeing seismic changes. Whilst the vast majority of purchases online in the Netherlands are still being made by laptop or desktop (74%), the number of purchases being made by smartphone has risen sharply, their use going from 6% to 9% which represents a rise from 8.9 million online transactions in 2015 to 14.9 million in 2016. This is a total rise of 68% and makes it the largest growing technology being used for purchases.
Future Trends And Challenges
The use of smartphones is only going to increase in the Netherlands. Evidence of this can be gleaned from the UK who are some years ahead in their adoption of online shopping. Whereas in the Netherlands smartphone use when shopping is at just 6%, in the UK a mobile device is used for over 30% of online purchases, a figure that the Netherlands will no doubt achieve in a relatively short time.
Further changes and challenges could also be seen in Netherlands ecommerce with the recent news that WeChat are expanding into Europe. Whilst it may be relatively unknown in Europe, this social media channel and payment provider is owned by the world’s tenth largest company Tencent Holdings Ltd and has nearly 900 million users in China alone. With the ever growing influence of Chinese companies and consumers in the world economy, countries across the world including the Netherlands could see their online shopping habits changed significantly with the introduction of new technology and products from the Far East.