iDEAL BV reached an agreement with European Payments Initiative (EPI) whereby EPI acquires the Dutch online payments scheme. EPI announced the acquisition today, marking the first concrete steps towards the creation of a European digital payments solution as an alternative to existing, often non-European, payment solutions. Simultaneously, EPI reached an agreement to acquire account-to-account payments technology provider Payconiq. Rabobank, ABN AMRO and Belfius will join as shareholders of EPI, stressing the importance of a successful European payment solution. Financial details of the transactions will not be disclosed.
EPI in term new European standard for payments
EPI was launched in 2020 by a group of European banks, credit institutions and third-party acquirers to create a new instant payment solution. The European Commission-backed initiative aims to become a new pan-European standard for payments in a market currently dominated by a few international and mostly non-European players.
The EPI product will be a multi-faceted digital wallet solution for retail payments and payments between individuals (peer-to-peer) across European countries. For this, EPI will build on iDEAL and PQI’s vast operational experience and know-how in the Benelux. In the Netherlands, a migration to the new iDEAL will follow first. This ensures a better connection with the shopping and payment behavior of consumers and offers more convenience. In addition, the new iDEAL better suits the wishes of merchants.
iDEAL
iDEAL is the Dutch standard for online payments. It is a user-friendly, cost-efficient, and secure online payment method. It enables consumers to pay directly online through their bank account. When an iDEAL transaction is successful, the merchant has a guarantee that he will receive the money, so that he can deliver the goods or services instantly. iDEAL payments have shown an exceptional growth in the Netherlands since its launch in 2005. In 2022 iDEAL facilitated over 1.2 billion payments for a total amount of almost €100 billion, and its market share in e-commerce transactions in the Netherlands amounted to 70%.
Payconiq
Payconiq International was founded in 2014. The mobile payment application company has since made a strategic pivot towards B2B activity, building upon its success in the Benelux and using its expertise and platform to support payment solution providers, banks, and merchants with advanced payment solutions. With the latest account-to-account payment technologies, Payconiq enables its partners, such as iDEAL, to optimize their customer journey for a frictionless payment flow. In 2022, Payconiq International processed over 4 million payments per day.
All iDEAL and Payconiq employees have been informed about the acquisition. Both transactions are subject to approval by the regulators.
Please find more information on these developments on the website of iDEAL.
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