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Payment Behaviors In Luxembourg: Innovation driven by security

The LHoFT Foundation and The Payments Association EU have conducted an extensive survey with TNS ILRES looking into the people of Luxembourg’s preferences and behaviors with regards to payments.

The LHoFT Foundation and The Payments Association EU, with the support of TNS ILRES, have concluded an extensive survey, which ran from the 28th of September through to the 13th of October, targeting Luxembourg residents aged 18 and older. The results of the survey have been condensed into a report titled “Payments In Luxembourg: A Glance Into The Future”.

This document and the results of the survey has been presented during a public webinar co-organised by the LHoFT and The Payments Association EU on Monday 13th of December at 12pm. Download the report HERE.

The LHoFT Foundation and The Payments Association EU have conducted this thorough survey in Luxembourg to gauge people’s preferences and likely future behavior with regard to payments. The questionnaire was designed by the LHoFT with input from the Payments Association EU. The fieldwork (online and phone) and independent analysis have been provided by TNS ILRES with over 1000 Luxembourg residents interviewed. The size of the sample gives strong confidence in the results being representative of the Luxembourg population.

Luxembourg is the home to major financial institutions, e-payment and e-commerce companies. The objectives of the survey were to gain a deeper understanding of customer behavior, preferences and expected future behavior to help decision-makers in both the public and private sector to anticipate changing needs in respect of their strategy related to payment products and services.

Some survey highlights:

–Security is by far the most important criteria for the use of any payment option, with users placing additional emphasis on protection of personal data.

–A majority (61%) of respondents use at least five different payment methods, with neobank payment offerings on the rise; two in ten people in Luxembourg City use a neobank to make payments.

–Roughly 1/3 of respondents have bank accounts in foreign countries.

–A “cashless” future has become more palpable to the population, with roughly half of the respondents, uniformly across age groups, indicating they would be comfortable living in a cashless society.

–Insurance services, reward schemes and instant payments are likely drivers of future payment behavior.

As Jérôme Vérony, Strategy and Research Manager, at the LHoFT explained: “While mobile payments are clearly on the rise and there is significant openness towards innovation more broadly, Luxembourg consumers continue to prize security, with Luxembourg retail banks firmly anchored as the centerpiece of the payments puzzle. By working together, incumbents and innovative startups stand to combine the best of both worlds.”

Thibault de Barsy, Vice-Chairman & General Manager of The Payments Association EU A.S.B.L. added: “As an association promoting the availability of new efficient and affordable forms of payments all over the European Union, we encourage all the local players to continuously improve their offer based on the best European practices. The declared intentions of the public to increase their usage of digital and mobile wallets is another clear evidence that Luxembourg does not want to stay behind the most advanced markets.”

The white paper is available HERE

Source: LHoFT