Bridging tradition and innovation: building trusted payment infrastructures together

From legacy systems to shared infrastructures

Payments have long relied on cooperation. In Luxembourg, interbank platforms, card schemes and clearing infrastructures were early examples of mutualisation driven by operational necessity and efficiency.

As the market has evolved, this cooperative logic has expanded beyond banks alone. New regulatory requirements — including instant payments and Verification of Payee (VoP) — have reinforced the need for shared solutions that reduce complexity, cost and risk across the ecosystem.

Mutualisation as a strategic choice

Panellists stressed that mutualisation is not about outsourcing responsibility. It is a strategic way to focus internal capabilities on areas of real differentiation, while building common foundations together where the market benefits from shared approaches.

From an infrastructure perspective, LUXHUB explained how hub-based models can support consistent implementation, regulatory compliance and a more uniform customer experience across institutions. VoP was discussed as a practical illustration: when a shared approach is used, end users benefit from more predictable outcomes and reduced confusion, especially in cross-border contexts.

These themes also echo recent industry discussions on instant payments and trust at European level, where coordination and operational readiness are increasingly decisive.

Trust by design: identity, security and user experience

Innovation in payments is inseparable from trust. As transactions become faster and increasingly irrevocable, the pressure on identity verification, authentication and fraud prevention intensifies.

LuxTrust underlined the recurring challenge shared across the ecosystem: strengthening security and compliance while keeping user journeys as smooth as possible. The discussion also pointed to the value of designing security “into” processes from the start, rather than treating it as a late add-on.

Digital identity — including the future EU Digital Identity Wallet — was presented as a key enabler for secure onboarding and more robust controls for high-risk scenarios, especially when deployed through coordinated, ecosystem-wide approaches.

Where innovation meets regulation

Throughout the panel, speakers emphasised that regulation and innovation are not opposing forces. Regulatory clarity creates the conditions for cooperation to scale sustainably and for market participants to invest with confidence.

From the ABBL perspective, the discussion highlighted a pragmatic idea: shared infrastructures make it easier for institutions to innovate while maintaining resilience, compliance and trust — particularly as the EU framework continues to evolve with PSD3, the Payment Services Regulation and related initiatives.