Mollie introduces payment alternative to challenge Wero

Amsterdam payment provider Mollie is launching Pay by Bank to compete directly with iDeal successor Wero.

Driving the news: Next year, iDeal will merge into Wero, a planned European payment standard that includes buyer protection like Visa and Mastercard. While this safeguards shoppers against fraud, some Dutch online merchants push back against the system because complaint procedures can create extra handling burdens and increase operational costs.

The details:

• Pay by Bank operates similarly to current iDeal transactions but excludes buyer protection, Het Financieele Dagblad reported.
• Shoppers will notice little difference because the technology is a white-label solution that each seller can customise.
• Mollie serves 350,000 European companies, while Wero has not yet announced its transaction fees.

Market impact: Providing webshops with an additional checkout option could increase price competition between payment processors, potentially resulting in reduced rates for online businesses.

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