LUXHUB featured in the latest “Key Players in the EU Payments Landscape” report
Deloitte, The Payments Association EU (PA EU) and The Paypers just released their latest report entitled “the Key Players in the EU Payments Landscape“. The report “offers an exclusive strategic review across EU’s individual payments markets, ranking the key players according to their place in the value chain and financial indicators”.
The report starts with the following statement: “The Payments Industry in Europe have experienced significant changes in recent years, driven, on the one hand, by the growth of e-commerce and increasing use of smartphones, and, on the other hand, by increased regulatory efforts and geopolitical factors. These changes have led to the emergence of new players and increased regulatory oversight”.
Vlad Macovei, from the Paypers, explains that the digitalization of payments increased these last years in the European payments industry, and “has been driven by their user-friendly and convenient nature, making them a preferred choice for consumers”.
Meanwhile, the payments industry in EU is subject to rigorous regulatory oversight, including PSD2 (Payment Services Directive 2) and GDPR (General Data Protection Regulation). These regulations have been implemented to create a safer payment environment for consumers and businesses.
Focusing on Luxembourg
Based in central Europe and hosting 123 banking institutions from all around the world, Luxembourg is “a major player in the payment industry in the EU and has become an international financial and banking hub (…)”. Moreover, there are 17 active payments institutions authorised and regulated by CSSF (Commission de Surveillance du Secteur Financier, the local authority in charge of supervising the professionals and products of the Luxembourg financial sector).
In addition, the report features an interview of Alexandre Havard (Partner at Deloitte Luxembourg Banking Consulting), who shares his predictions and discusses the opportunities and challenges faced by new Fintechs entering the market:
“Initiatives in the field of private banking are fewer; acquisitions are not common, and partnerships that could enable banks to accelerate the service implementation through FinTechs are under-developed.” He also discusses the LUXHUB-Vermeg partnership concluded in 2022 and revolving around the smooth exchange of custodian data between depository banks and life insurance companies. “A partnership that worked quickly and effectively in Luxembourg”, he highlights.
M. Havard sees another challenge which could impact the Payment industry in the coming months: CESOP (Central Electronic System of Payment Information). It will require new data transmission and should take effect on January 1st, 2024. “The forthcoming year will require focus on these new requirements, with particular attention on ISO 20022, as the deadline for SWIFT draws near,” concludes Alexandre Havard.
What is Custodix Hub?
One of the purposes of LUXHUB is to connect all stakeholders, from Financial Institutions to Fintechs and public/private companies.
In this respect, we concluded a strategic partnership with software leader VERMEG which resulted in the launch of the Custodix Hub offer. This solution aims at facilitating custodian data exchange, acting as the missing link between custodian banks and life insurance companies.
Credit photo : Photo by Sean Pollock on Unsplash