Luxembourg Cards and Payments: Opportunities and Risks to 2027

The ‘Luxembourg Cards and Payments: Opportunities and Risks to 2027' report provides detailed analysis of market trends in Luxembourg's cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including cards, cash, credit transfers, direct debits, and cheques during the review-period (2019–23e).

The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2023e–27). It also offers information on the country's competitive landscape, including market shares of issuers and schemes.

The report brings together the research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers detailed regulatory policies and recent changes in regulatory structure.

The ‘Luxembourg Cards and Payments: Opportunities and Risks to 2027' report provide top-level market analysis, information, and insights into Luxembourg's cards and payments industry, including:

• Current and forecast values for each market in Luxembourg's cards and payments industry, including debit, and credit cards.
• Detailed insights into payment instruments including cards, cash, credit transfers, direct debits, and cheques. It also, includes an overview of the country's key alternative payment instruments.
• Ecommerce market analysis.
• Analysis of various market drivers and regulations governing Luxembourg's cards and payments industry.
• Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
• Comprehensive analysis of consumer attitudes and buying preferences for cards.
• The competitive landscape of Luxembourg's cards and payments industry.

Scope

SCT Inst is a pan-European instant credit transfer scheme launched by the European Payments Council. The scheme operates 24 hours a day, seven days a week, 365 days a year. SCT Inst settles funds in near-real-time, with recipient banks required to credit amounts to their customers no more than 10 seconds after a payment is received. A maximum of EUR15,000 ($16,098.47) per transaction was allowed initially, but this was increased to EUR100,000 ($107,323.11) effective from July 1, 2020. SCT Inst supports both individual and business transactions. However, adoption remains comparatively low in Luxembourg, with only eight participants offering the service as of February 2024.

Despite an adult banked population of 99.7% as of 2023e, financial inclusion and financial literacy initiatives remain key priorities among relevant stakeholders. Although the level of financial knowledge of Luxembourg residents is generally high, the 18–29 age group scores 63 out of 100 as per the OECD’s financial literacy measure, which is below the OECD average. To help address this issue, in March 2023, the Luxembourg Bankers’ Association Foundation for Financial Education and the Financial Sector Supervisory Commission advocated for the introduction of financial education in schools and academic institutions.

To capitalize on the country’s growing ecommerce market, companies are expanding their online services to Luxembourg. In September 2023, European online fashion retailer ABOUT YOU expanded its operations to the country. Similarly, in March 2023, German online bicycle retailer Bike24 launched its ecommerce website in three European countries, including Luxembourg. Meanwhile, domestic online marketplace letzshop.lu, which enables Luxembourg’s merchants to sell their goods online, reached a user base of 100,000 consumers in 2022, following its launch in 2018.

Reasons to Buy

• Make strategic business decisions, using top-level historic and forecast market data, related to Luxembourg's cards and payments industry and each market within it.
• Understand the key market trends and growth opportunities in Luxembourg's cards and payments industry.
• Assess the competitive dynamics in the Luxembourg's cards and payments industry.
• Gain insights into marketing strategies used for various card types in Luxembourg.
• Gain insights into key regulations governing Luxembourg's cards and payments industry.