What is Bancontact?
Bancontact, a European payment scheme operating in Belgium, is the market leader in all things electronic transactions. This is no wonder as 1.7 billion payments were processed through Bancontact in Belgium as of 2020, according to Statista. Founded in 1989, Bancontact is boasting a wealth of ever-advancing features and payment services that support online, in-app and point of sale (POS) transactions. With a track record of more than 15 million active debit cards circulating nationwide, Bancontact is, no doubt, Belgium’s alternative payment method of choice. Better still, its integration with all major Belgian banks, some of which include ABK Bank, Beobank, CPH Banque, KBC Bank and VDK Spaarbank, makes it a well-known and trusted name in the Belgian payments landscape.
How does Bancontact work?
As mentioned, Bancontact represents a huge chunk of Belgium’s payment traffic. This makes it an ideal acceptance option for merchants, as it gives them the gratification of instant and guaranteed payments without the risk of chargebacks. Meaning that as soon as the funds are withdrawn from the consumer’s bank account and transferred to the processor’s account, they cannot be reversed. The only way customers can reclaim the amount they spent on a purchase is via a refund.
A Bancontact card with a PIN number can be issued to every local bank account holder. The card is linked to their current account and accepted in most Belgian brick-and-mortar and online stores.
Let's explore all the different ways customers can pay with Bancontact.
Point of sale payments
Bancontact is an adapted payment checkout option, so transactions at physical stores are made smoothly and safely. The process for contactless payments is as simple as holding the Bancontact card near the contactless symbol on the payment terminal until the confirmation of the transaction flashes on the screen and voilá… it’s completed.
The customer will only need to enter their PIN at the terminal for purchases over €50.
Online payments – Mobile banking app
Consumers can authorise a transaction through their mobile app by pressing the “Open the app” button. Each transaction is then confirmed via a four-digit pin code or when customers use their fingertip for biometric authentication. Payments can also be conducted on a tablet where the user can either tap on the “Open the app” button and verify with a pin code or scan the QR code using another device and typing the relevant pin code.
It’s important to note that online transactions made through Bancontact are protected by 3D Secure (3DS).
Online payments – Desktop
Let's unpack what it takes to make a payment using a device other than a smartphone or a tablet which has the Bancontact app already installed; namely, in circumstances where the device is a computer, and the customer selects the “Pay with your card” option.
After browsing through the web store and stacking their shopping cart with goods, consumers reach the merchant’s eCommerce checkout page. They need to choose Bancontact as their preferred payment option and input their card details. The transaction is then redirected to their web banking environment.
The customer must review their prefilled payment data and authorise the payment in two ways: either through the QR code that the user can scan on the app and authenticate the payment using their phone/tablet, or through card by entering their Bancontact card data, such as card number and expiration date. From there, the consumer is redirected to their issuer's banking page for 3DS authentication. Once the payment has been submitted and the merchant receives the confirmation, the goods or services are ready to be delivered.
What verticals does Bancontact serve?
Merchants can tap into Bancontact to equip their customers with payment functionalities (e.g. QR codes) that cater to a wide selection of industries – from retail and general eCommerce to travel, forex and gambling. This way, they're well-positioned to provide speedy payment processing within a trustworthy payment channel.
How big is Bancontact’s market penetration?
A report from Statista illustrates that Bancontact experienced the highest market share of card networks between 2016 and 2019, standing out as Belgium's dominant payment method for online and offline transactions.
Contactless transactions held a strong appeal to consumers’ payment preferences in 2020, seeing that 442 million contactless payments were made via the Bancontact card. The usage of Payconiq by Bancontact app mobile app, which is supported by 20 Belgian banks and 290,000 shops across the country, is also ticking up. 2020 was, equally, a favourable year for the app given how it catapulted its popularity to greater heights with the growing number of Belgian consumers using it – 4.9 million users and counting. What began as an attempt to streamline the payment experience has ended up accounting for more than 125 million transactions in 2020, composing a drastic rise of 88% compared to 2019. What's more, insights from GlobalData anticipate that smartphone and internet banking will hit a staggering 93% and 87%, respectively, in 2025.
Benefits of using Bancontact
Below is a snapshot of the reasons to add Bancontact to your offering – the list is inexhaustible:
- Real-time transaction confirmation and notification
- Secure transactions with 3D Secure
- High conversion rates due to the Bancontact’s prevalence in Belgium (the payment method accounts for a debit card circulation of over 94%)
- Customer convenience as no sign-up is required
- Integrated in trusted and user-friendly online and mobile banking
- No chargebacks or reserves involved
Accepting payments in Belgium with emerchantpay
If expanding into the Belgian market is your goal, Bancontact may be a good starting point. A leading global payment service provider who knows the ins and outs of your local target audience and their payment preferences can guide you in making informed business decisions for maximal performance.
emerchantpay's team of payment specialists delivers innovative solutions to our customers on a global scale. The Belgian market remains high on our radar, as we take pride in our payments expertise to help merchants across multiple verticals set up regional strategies for global leadership and greater profitability. We collaborate, through dedicated support, to enable your integration with Bancontact while also covering all major payment solutions for merchants seeking to explore this dynamic region, including Sofort, Trustly, and SEPA Direct Debit.
If you need help with integrating Bancontact into your payment system and taking your consumer checkout journey to the next level, get in touch with our payment experts today.