Pandemic-triggered boom drives record growth for Dutch payments company Adyen!

Recently, Adyen , a Dutch payment company that is a customer of ours , released its annual growth data, which showed that the epidemic had not affected the development of the retail industry .

It is understood that the company's trading volume surged 70% in 2021 to 516 billion euros (590 billion US dollars), more than half of which will be concentrated in the second half of the year .

The Amsterdam-based company's revenues for the year reached €1 billion and its Ebitda profit reached €630 million, up 57% from 2020. The company's Ebitda margin was an astonishing 63% .

This is a sign that the ongoing global pandemic is driving more consumers to shift the way they shop, from offline to e-commerce. Pieter van der Does, co-founder and CEO of Adyen, said this trend shows no signs of abating in 2021.

Adyen is one of the few payment companies that can unify the processing of physical and digital shopping transactions. Its customer base includes retail brands from Gap Inc and Levi's to L'Oréal and Swarovski, as well as major online platforms such as eBay, Etsy and Uber.

“ The pandemic has proven that unified commerce is important and necessary for the company,” van der Does said. He noted that physical store point-of-sale terminals, where Adyen once lagged behind other payment competitors, now account for 14% of the company’s processing volume and have been a key factor in winning more business from existing customers.

Once a company uses Adyen as its in-store payment terminal, it tends to use Adyen as its sole payment provider for all of its business, he said, while those who only use the company for mobile or e-commerce often maintain relationships with multiple payment vendors .

The CEO also noted that Adyen, which counts big travel suppliers such as Booking.com and European low-cost carrier EasyJet among its clients , could see from its transaction volumes that the travel industry was also being affected by the pandemic .

Van der Does said that while travel payment volumes have now returned to pre- pandemic levels, this contrasts with transaction volumes in other industry sectors, which have seen much greater growth than in 2019.

In Asia, many consumers who have never used a credit or debit card are jumping straight to mobile payment platforms like Alipay in China or Paytm in India, van der Does said . “ It’s not just Google Pay and Apple Pay,” he said. “We’re seeing a whole new wave of payment methods.”

He said Adyen will continue to seek to support as many of these different payment schemes as possible, enabling merchants, who are Adyen's primary customers, to meet consumers wherever they want to shop, using whatever payment method they want to use.

Netherlands

Epidemic driven

Online payments growth