Payments Landscape in Luxembourg: Opportunities and Risks to 2022
Luxembourg’s payment card market is mature, with a high penetration rate of 4.6 cards per inhabitant. Cards are the preferred payment instrument in the country, accounting for 54.1% of total consumer payment transaction volume in 2018. Improved payment infrastructure, high awareness of payment cards, enhanced security, and the growing adoption of contactless payments will support this growth.
Debit cards are widely used for low-value debit card payments. Debit card penetration in the country stands at 1.3 cards per individual, supported by a strong adult banked population, which stood at 99.2% in 2018. Additionally, the entry of digital-only banks such as N26 and Ferratum Bank has supported debit card market growth. The frequency of debit card payments is progressively on the rise, registering a healthy review-period compound annual growth rate (CAGR) of 5.5% - up from 78.1 times a year in 2014 to 96.9 times in 2018.
Credit card penetration is high in Luxembourg, with each individual holding three cards as of 2018. Consumers are also avid users of credit cards, which accounted for 61.8% of total card payment value in 2018. This is supported by banks offering credit cards alongside banking packages, as well as rising disposable income and household consumption in the country. Rising adoption of contactless technology contributed to the growth of payment card transaction volume and value during the review period. And with a growing number of retailers accepting contactless payments, this trend will further drive payment card transaction values and volumes over the forecast period (2018e-22f).
E-commerce in Luxembourg grew from €535.0m ($612.9m) in 2014 to €810.5m ($928.5m) in 2018 at a review-period CAGR of 10.9%. The growth was supported by growing interest in online shopping, government initiatives, and an increasing number of online merchants.
The report Payments Landscape in Luxembourg: Opportunities and Risks to 2022, 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 cash, cards, credit transfers, direct debit, and cheques during the review-period (2014-18e). 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 (2018e-22f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes. The report brings together 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 report provides -
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