The LHoFT Foundation and The Payments Association EU have just concluded an important and representative survey of Luxembourgish citizens’ payment preferences and behaviours thanks to the support of TNS ILRES. Findings suggest that security and innovation are strong drivers and that a cashless society is increasingly likely.
Taking the pulse of a nation every few years is a safe practice to stay ahead of the curve. To stay on top of consumer preferences and be able to adapt to changes in behaviour, the LHoFT Foundation, together with The Payments Association EU and TNS ILRES conducted an in-depth survey on over 1000 adult Luxembourg residents from the end of September to mid-October.
Presented during a public webinar on Monday 13th of December at 12pm, the results will be accessible to all attending parties. To follow the webinar, sign up here.
The results of the survey have been condensed in a detailed report titled “Payments In Luxembourg: A Glance Into The Future”. While they have not been published yet, some surface results have already been made public. Interestingly, Jérôme Vérony, Strategy and Research Associate at the LHoFT explains that the results bode well for startups.
“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 centrepiece of the payments puzzle. By working together, incumbents and innovative start-ups stand to combine the best of both worlds,” he says.
Security, Neobanks And Cashless
Designed by the LHoFT with input from the Payments Association EU, the fieldwork and independent analysis was conducted by TNS ILRES. Statistically speaking the large sample size (> 1000 residents) implies that the results are strongly representative of the Luxembourg population.
Preliminary results interesting for public and private players include:
- 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 ⅓ 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 behaviour.
While new forms of payment are on the rise all across the EU, Thibault de Barsy, Vice-Chairman and GM of The Payments Association EU urges local players to “continuously improve their offer based on the best European practices.”
With the public keen on increasing their usage of digital and mobile wallets, it seems clear that Luxembourg’s citizens are ready to embrace the digital economy and stay at the forefront of innovation.
Do not forget to sign up for the event here for the full results and a clearer glance into the future than a cursory article can provide.
— Luxembourg House of Financial Technology (@The_LHoFT) December 2, 2021