Ultimate Guide to iDEAL Payment Method: What Businesses Need to Know

Please note that the information about iDEAL in this article was sourced from its official website on 10 February 2025. This information is subject to change.

Over 70% of Dutch consumers pay with iDEAL, making it a must-have for merchants selling in the Netherlands. However, its regional restrictions and third-party dependencies can be challenging for businesses with cross-border ambitions.

This guide breaks down iDEAL’s key benefits and drawbacks and explores how open banking solutions can provide a more seamless, scalable payment option.

What Is iDEAL and How Does It Work?

iDEAL is the leading online payment method in the Netherlands, enabling direct bank-to-bank transactions. Used by nearly all Dutch consumers, it’s accepted by over 210,000 businesses for e-commerce, invoices, and payment requests.

In 2023, iDEAL introduced Snel betalen and Snel bestellen, streamlining checkout with an iDEAL profile for faster transactions. Processing millions of payments daily, it remains the dominant choice for Dutch online payments.

Where is iDEAL Available?

iDEAL is exclusively available in the Netherlands, supported by major Dutch banks like ING, ABN AMRO, and Rabobank. While widely trusted by local consumers, its usage is restricted to Dutch bank account holders, limiting accessibility for international businesses.

Merchants who want to accept iDEAL payments must rely on a third-party payment service provider to facilitate cross-border transactions. This adds complexity, extra fees and dependency on external processors – reducing flexibility in payment handling.

While iDEAL is effective for Dutch transactions, businesses with international reach may require a payment system with greater flexibility. This is where modern open banking alternatives come in, offering broader geographical coverage and more flexible integration options.

How Does iDEAL Work?

At checkout, customers select iDEAL and choose their bank. They are redirected to their banking app or online banking portal, where they approve the payment. Once authorised, funds are instantly transferred from the customer's account to the merchant’s bank account, with both the customer and merchant receiving immediate confirmation.

Since transactions are processed within the bank’s secure environment, iDEAL ensures a familiar, seamless and fraud-resistant payment experience.

Pros and Cons of Using iDEAL for Business Payments

iDEAL NL payments are widely used payment method with strong adoption in the Netherlands, but it also has limitations that may impact business flexibility.

iDEAL payment method provides strong payment capabilities in the Dutch market, but its regional limitation and dependence on third-party providers can create challenges for businesses expanding internationally.

Open banking payments, on the other hand, provides exactly what IDEAL lacks —seamless bank connectivity and multi-regional coverage for businesses expanding beyond local markets.

What Is Open Banking?

Open banking payments – often referred to as pay-by-bank – is an innovative payment method that allows seamless account-to-account (A2A) transfers. In Europe, it’s widely adopted and regulated with PSD2, which was enforced in 2018 and required all banks to share data via APIs with licensed providers.

When paying by bank, customers don’t need to insert their payment details manually. They are directed to their trusted bank’s interface and authorise the transaction there, with bank-level security. Apart from superior UX, open banking does not involve card networks, which cuts card fees and chargebacks.

In the Netherlands, 85% of financial service experts and executives have a positive outlook on open banking, recognising its potential to reshape digital payments. The market is already shifting—A2A payments are projected to grow from 64% of domestic e-commerce transactions in 2023 to 70% by 2027.

With this rapid adoption, open banking solutions like Noda – provide a scalable, flexible alternative to region-specific payment systems like iDEAL, connecting merchants to banks beyond the Netherlands.

iDEAL vs. Noda Open Banking: Unlocking More Payment Potential

iDEAL operates within a closed network of Dutch banks, making it a strong choice for businesses catering to local customers. All merchants, whether based in the Netherlands or internationally, must integrate iDEAL through certified third-party providers. However, for international businesses, this process can be more complex and often comes with higher transaction fees.

Noda’s open banking payment solution, offers merchants direct access to bank payments, in the Netherlands and beyond, across multiple markets, allowing businesses to expand payment options without relying on region-specific systems. This supports greater flexibility for merchants operating globally while maintaining the security and efficiency of bank-based transactions.

Open Banking Benefits for Merchants

• Instant settlement: Noda’s open banking solution ensures faster access to funds, improving cash flow management.
• Lower transaction costs: As it bypasses card networks, open banking eliminates card fees and reduces overall payment expenses.
• Seamless API integration: We ensure streamlined onboarding with minimal technical overhead.
• Personalised branded payment pages: Merchants can customise payment pages for a consistent brand experience.
• Bank-grade security and compliance: We adhere to stringent regulatory standards for secure transactions.

iDEAL payment gateway is a trusted option for businesses in the Netherlands, but for those who may expand internationally, Noda’s Open Banking offers a cost-effective and scalable complement to their existing payment solutions.

Open Banking with Noda

At Noda, we offer a truly global open banking solution designed to help businesses streamline payments, enhance customer verification and optimise financial operations.

With access to over 2,000 banks across 28 countries including Europe, the UK, Brazil and Canada, we enable secure, cost-effective transactions while supporting multiple currencies for international expansion.

Noda’s Open Banking API enables businesses to accept direct bank payments seamlessly, cutting reliance on traditional card networks and lowering transaction costs. With support for bank-to-bank payments and payouts, e-commerce plugins and no-code streamer donation solution, Noda provides a flexible, cost-effective payment solution.

With scalable plans and support, Noda ensures easy integration for businesses of all sizes, making open banking more accessible, flexible and growth-focused.

Final Thoughts on iDEAL and Noda

iDEAL bank transfer is a strong choice for businesses in the Netherlands, but expanding beyond local markets requires a more flexible approach. Noda’s Open Banking solution offers direct payments, faster settlement and multi-market coverage—without third-party fees.

The best payment solution is the one that aligns with your business objectives. Compare your options and choose the approach that supports your growth.