Payments Snapshot in Netherlands - Coronavirus (COVID-19) Sector Impact

Payments Snapshot in Netherlands - Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy affecting millions of people globally. The contagious coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel coronavirus a pandemic on March 11, 2020.

According to the IMF, the Dutch economy will shrink by 7.5% in 2020, with the unemployment rate set to hit 6.5%.

In response to the economic fallout of the COVID-19 outbreak, the government announced a series of measures on March 17, 2020. To support businesses that are struggling to pay their employees, the government is offering to pay up to 90% of employees' wages for three months, depending upon the amount of lost revenue businesses have incurred.

This report focuses on the impact of the coronavirus outbreak on both the economyand the cards and payments industry in the Netherlands. Based on our proprietary datasets, the snapshotprovides a detailed comparison between pre-COVID-19 forecasts andrevised forecasts of total payment card, debit card, and credit and charge card transactions by value and volume. It also offers information on measures taken by the government to combat coronavirus.

Scope

- The COVID-19 outbreak has impacted the Netherlands, with travel and tourism among the worst hit sectors, which in turn has affected the payments industry. As per our 2019 Banking and Payments Survey, travel and accommodation accounts for 26.6% of the country’s total credit card transaction value. The government’s recent move to ease travel restrictions will provide a much-needed boost to the sector, although it won’t be able to cover the losses incurred during the first half of 2020.
- Amid growing consumer fears, online spending is likely to surge as wary consumers are staying home and using online channels to purchase goods. Major Dutch online shopping platforms including Bol.com, ah.in, Coolblue, Zalando, and Wehkamp have witnessed a strong spike in online sales. To capitalize on this, online retailer Amazon launched in the country in March 2020.
- Dutch consumers are increasingly preferring digital channels for banking transactions. As a result, on July 10 ING Bank announced the closure of 42 branches (around a quarter of its 170 branches) with immediate effect. According to the bank, on average only two or three customers were visiting some branches per hour, which helped drive this decision.

Reasons to Buy

- Make strategic decisions using top-level revised forecast data on the Dutch payment industry.
- Understand the key market trends, challenges, and opportunities in the Dutch cards and payments industry.
- Receive a comprehensive insight into payments market in the Netherlands.