Payment Services
As digital transformation accelerates across every aspect of society, payment services have become a vital enabler of this evolution. From seamless e-commerce experiences to efficient corporate treasury operations, the payments sector is growing rapidly—meeting diverse demands from consumers, SMEs, merchants, and global corporations alike.
Whether it’s individuals shopping online, small businesses expanding cross-border, retailers managing daily cash flows, or large firms optimizing complex transactions—payments are at the core of today’s digital economy.
A Thriving Payments Hub in the Heart of Europe
Luxembourg’s payments landscape is evolving in step with global trends, underpinned by its status as both a leading international financial centre and a strategic player in the European Single Market.
Thanks to its unique strengths, Luxembourg has emerged as a European hub for payment services:
- Strategic location in the EU, close to Frankfurt, Paris, and Brussels.
- Multilingual and multicultural talent pool with deep financial expertise.
- Robust regulatory framework aligned with EU directives.
- Gateway to Europe for international Payment and E-Money Institutions looking to serve the EEA.
A Growing Ecosystem of Players and Platforms
The number of payment service providers (PSPs) operating from Luxembourg continues to grow, representing a wide variety of technologies, business models, and customer segments. The ecosystem includes:
- Traditional banks offering retail and corporate payment solutions.
- EU-licensed Payment and E-Money Institutions (EMIs).
- Fintech innovators and Third-Party Providers (TPPs) driving open banking and digital finance.
A Full Spectrum of Payment Solutions
Luxembourg-based PSPs provide a comprehensive suite of services across the entire value chain:
- Retail and corporate payments (SEPA, SWIFT, foreign exchange)
- Card issuing and acquiring
- e-Money wallets and stored value products
- Direct debits and standing orders
- Mobile, digital, and contactless payments
- Open banking services: Payment Initiation (PIS) and Account Aggregation (AIS)
- Cross-border e-commerce payment processing for global merchants
These services are increasingly integrated with advanced compliance technologies, including KYC/AML systems, fraud detection, and real-time reporting tools.
Key figures (2024):
Payment preferences in Luxembourg
Cash
29%
Access to cash has improved slightly in Luxembourg in contrast to the European average! More than a quarter of citizens (29%) finds the option to pay cash in a store very important.
Digital
95%
One can make cashless/digital payments almost everywhere in Luxembourg! 2024:
with 95% now second highest in Europe compared to 2022 : 88%.
Peer-to-peer
1/3
One in three Luxembourg citizens uses a mobile payment app to pay another person.
Instant payment
72%
Instant payment is on the rise in Luxembourg with 72% of citizens having it available and 57% actively using it. This puts Luxembourg in 2nd place after the Netherlands.
Security
47%
Luxembourgers are security-orientated. 47% prefer to maintain a second authentication method and 25% like to use biometric identification.
Crypto-assets
+33%
12% of Luxembourg citizens own crypto assets, an increase of 33% compared to 2022.
