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
Cash
95%
95% of payments in Luxembourg can now be made without cash, placing the country 2nd in Europe.
Digital
70%
70% of customers make their transfers remotely.
Peer-to-peer
1/3
One in three Luxembourgers uses a mobile payment app to transfer money to another person.
E-banking
+11%
E-banking transfers increased by 11% in 2024, while in-branch transfers fell by 16%.
Assistance
4%
Only 4% of residents say they need help with online, card, or mobile payments, one of the lowest rates in Europe, just behind the Netherlands (2%)
Cash withdrawals
13%
Only 13% consider access to cash withdrawals to be fairly difficult or very difficult. This is evidence of excellent coverage by ATMs and bank branches.
