International Showcase - The Payments Industry in Luxembourg

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LUXEMBOURG European Payments Hub


LUXEMBOURG European Payments Hub


AMAZONISATION


Number of worldwide non-cash transactions (in billions) by region 1200

1000 201,8

More global, more cashless payments

800

192,8 203,6 184,5

600

400 130,3

200

0 Source: Capgemini World Payments Report 2019

98,6 37,3 29,4 27,3 34,9

41,4 38,9 30,4 36,8

2013

2014

114,8 45,4 56,9

61,3 55,6

50,1 72,6

96,2

MEA

67,6

133,8 124,4

352,8 269,5

208,7 161,1

123,7 51,1

54,3

57,7

45,5

48,4

61,9

74,4

90,2

111,2

139,3

43,1

2017

2018F

2019F

2020F

2021F

2022F

34,7 38,5

41,3 39,8

49,3

2015

2016

Mature APAC

Latin America

81,7

74,2

144,2

137,9

103,5

170,4 156,3

152,9 145,4

90,2

Emerging Asia

168,2 160,6

Europe 185,9

184,5

North America


PAYMENTS

EU hub for major international payments companies


THE EUROPEAN SINGLE MARKET

450+

MILLION CUSTOMERS

7000+ FINANCIAL INSTITUTIONS

23

MILLION SMEs

WITH FREE MOVEMENT OF

GOODS

CAPITAL

SERVICES

PEOPLE


“Payments”

Payment Institutions (PI)

Electronic Money Institutions (EMI)

PSD2

PSD2

Banks

Crowdfunding

BL, MIFID Examples:

• B2B and B2C payment platforms – providing means to make either payments between companies, or between companies and individuals • Debit and credit payment transactions – execution of direct debits, standing orders etc. • FX services – automatic currency conversion • Gift voucher processing, recharging mobile phone prepaid cards

National


“Payments”

Payment Institutions (PI)

PSD2

Electronic Money Institutions (EMI)

PSD2

Banks

Crowdfunding

BL, MIFID Examples:

Issuance of ”e-money” - monetary value that is stored in electronic format and that is issued against bank money, and that is accepted by other individuals or organizations Digital wallet services

National


“Payments”

Payment Institutions (PI)

PSD2

Electronic Money Institutions (EMI)

PSD2

Banks

Crowdfunding

BL, MIFID Examples:

Wide range of possible additional services, including: • Provision of loans • Current and savings accounts and deposit taking • Access to payment systems

National


“Payments”

Payment Institutions (PI)

PSD2

Electronic Money Institutions (EMI)

Banks

PSD2

Currently no EU-wide regulatory framework in place, therefore passporting not currently possible in the EU

Proposal put forward by European Commission for EU-wide regulation on crowdfunding in March 2018

BL, MIFID

Crowdfunding

National


ESTABLISHED FINANCIAL CENTRE $5tn AUM in funds industry

120+ banks

100 insurance firms Major custody and listing centre


PROFESSIONAL FINANCIAL ECOSYSTEM

Lawyers / Consultants

Accelerators

IT Infrastructure

PSFs

Research & Development


RIGOROUS REGULATORY JURISDICTION

EU Directives & Passport

Cross-border regulator

International law

Innovative legislation

Multilingual


A GREAT PLACE TO LIVE AND WORK

Diverse

Safe & Clean

Visa free travel

Family friendly

Quality of Life


INTERNATIONAL GLOBAL COMPANIES CENTRAL LOCATION INNOVATIVE QUALITY OF LIFE STABLE


LUXEMBOURG FINANCE IS OUR TRADE

More information, videos & newsletters on www.luxembourgforfinance.com

Chris Hollifield Fintech Development Adviser chris.hollifield@lff.lu


www.emergingpayments.eu


Emerging Payments Association

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Emerging Payments Association

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Emerging Payments Association

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INTERNATIONAL SHOWCASE


OUR MISSION The LHoFT Foundation is a public - private sector initiative that drives technology innovation for Luxembourg’s Financial Services industry, connecting the domestic and international FinTech community to develop solutions that shape the world of tomorrow.


PUBLIC – PRIVATE PARTNERSHIP

LEADERSHIP CIRCLE PARTNERS

3

ASSOCIATE PARTNERS

WITH THE SUPPORT OF


4

INCUBATION


LUXEMBOURG FINTECHS MAP 5

220+ fintechs firms - 4300 Employees - €560M in Revenues - €130M in Capital


WHY LUXEMBOURG ?

LEADING FINANCIAL CENTER 1st Securities listing in EU 1st

Microfinance center in EU

Premier Wealth Management Center in Eurozone (> 350 billion AuM) Leader in Green Bonds & Climate Funds

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1st RMB Center in EU 2nd Financial center in EU 2nd largest fund center in the World (> 3.9 trillion AuM) Home to EIF and EIB AAA rated country


LUXEMBOURG’S ATTRACTIVENESS

ü Highly Accessible Financial Regulator ü Corporations open to innovation and

partnerships ü License application in English, French and

German ü EU passporting license (400M consumers) ü Regulated cloud services ü Seven Tier 4 Data Centers ü Partnership with Key Fintech Hubs around

the World ü Highly Qualified People

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SUPPORTING FINTECHS

FINTECH ECOSYSTEM VALUE CHAIN

8


INTERNATIONAL NETWORK

25+ INTERNATIONAL PARTNERSHIPS

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THANK YOU info@lhoft.lu


You enjoyed the session and would like to receive more information about us? Then feel free to reach out to us.

Chris Hollifield - Business Development & Fintech Adviser at LFF chris.hollifield@lff.lu

LUXEMBOURG

Thibault De Barsy, Vice-Chairman & General Manager at Emerging Payments Association EU - thibault.de.barsy@emergingpayments.eu

European Payments Hub

Alex Panican, Head of Partnerships & Ecosystem Development at LHoFT alex.panican@lhoft.lu Karen O’Sullivan, Head of Innovation, payments, market infrastructures and governance Department at the CSSF - karen.osullivan@cssf.lu Natasha Deloge, Deputy Head Of Department at the CSSF natasha.deloge@cssf.lu Samuele Pinta, Founder & COO Satispay samuele.pinta@satispay.com


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