Payconiq, Luxembourg’s preferred digital payment solution, was recently acquired by the European Payments Initiative (EPI). Silicon Luxembourg found out what this means for Payconiq and European payments at large.
Since it was founded in 2015, Payconiq has taken great strides in improving its solution and expanding its services. Unsurprisingly, with a steady growth rate of 30% per year and continued interest from new merchants, it did not take long for the innovative payment solution to get noticed by the European Payments Initiative which ended up acquiring it along with the Dutch payment scheme iDEAL in a landmark deal at the end of April 2023.
“Everyone turned out to be in favour of the acquisition by EPI. The new combination will soon have sixteen shareholders, all major European payment institutions. That offers even more support and decisiveness,” said Guido Vermeent, CEO at Payconiq International.
In particular, this acquisition will support Payconiq’s European ambitions, which it set out three years ago in its new strategy. So far, this strategy has seen Payconiq offer its services to Luxembourg, Belgium and The Netherlands, however, under the EPI, the expansion efforts will receive a significant boost.
“We will go from three countries in which we currently offer the preferred payment solution to five countries as our first next step.”
Guido Vermeent, CEO at Payconiq International
Embracing digital payments
Traditional cash transactions are gradually giving way to the convenience and efficiency offered by digital payment solutions. With consumers seeking seamless experiences and businesses prioritising secure transactions, the interest in digital payments continues to grow.
“In our industry, the first thing is to make sure that what is there is always working properly and securely. Up-to-date security is always in pole position with us. The critical element is and remains the infrastructure. The second stage of our rocket stands for innovation,” says Guido.
Payconiq’s remarkable growth rate is a testament to the popularity and efficacy of digital payment solutions. While some countries are still lagging behind in terms of adoption, it seems inevitable that user-friendly and secure payment solutions are the future.
A Luxembourg presence
Already known by 85% of the Luxembourg population, according to a 2022 Ilres study, Payconiq has established itself as the dominant digital payment solution in the grand duchy.
“The solution has been actively used in Luxembourg since 2012 and has been increasingly adopted by consumers over the last years,” said James King, Head of Payconiq Luxembourg.
“Currently, we are approached by around 130 new merchants every month, which shows that we offer a compelling service both for the consumers and our clients and partners.”
James King, Head of Payconiq Luxembourg.
The payment platform will keep running and continue to serve its clients, benefiting from this next move with EPI. “We see constant requests for new features from our users and merchants, all of which the EPI aims to bring to the market in the near future. This is a win-win combination for our domestic market and for the payments industry in Europe”, added James.
EPI brings a European dimension with the ambition to harmonise digital payments across borders with recurrent requests from Payconiq’s users given Luxembourg’s international environment.
A digital wallet
By combining forces, the EPI and Payconiq intend to offer a unique instant payment solution – a digital wallet – that caters to the evolving needs of consumers and businesses. With a shared vision of building an innovative and unified payment platform, the collaboration between EPI and Payconiq is set to redefine the European digital payment landscape.
While the Dutch payment scheme iDEAL was also acquired by EPI, it appears that Payconiq will lead the way in this endeavour, which is in line with the proposals advocated by the European Commission and the European Central Bank.
The platform that the EPI aims to develop will be an all-in-one solution that will enable all sorts of transactions, including one-off payments, subscriptions, instalment payments, payments on delivery and reservations. Additional value-added services such as buy now, pay later, digital identity functionality, savings, and loyalty programmes are also planned.
On top of Europe
EPI’s vision of the future alongside Payconiq and iDeal is certainly ambitious but with most major European banks, including Deutsche Bank, ING and KBC, among others, on board, there seems little reason to doubt that they will achieve it.
When asked where he wanted to be in three years, CEO Guido Vermeent was very clear: “At [the] European top, that much is clear. And although it’s certainly not an item now, I certainly don’t rule out further growth to other continents in advance.”
This article was first published in the Silicon Luxembourg magazine. Get your copy.
