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Money transfer software for payment institutions in Luxembourg

A Luxembourg payment institution often serves companies, funds and expatriates who move money across borders every week. Give them transfers, payouts and exchange in one platform, and give your finance team the reports it needs to account for money still in transit.

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Case Studies

See what teams build with Crassula.

Money Transfer · Payment institution

What a Luxembourg payment institution can run

Cross-border transfers for individuals

The sender sees the fee, the rate and the amount the recipient gets before confirming. Repeat transfers start from saved recipients.

Payouts for companies

Salaries, supplier runs or investor distributions uploaded as a batch file or built from templates, approved and then executed line by line.

Accounts for clients who pay every month

IBAN accounts that exist only to execute payments. The balance is neither a deposit nor e-money.

Currency exchange tied to a transfer

FX inside the transfer, with margins and fees from price lists your team changes without developers.

Limits per client

Client limits set in the back office cap what each customer can send. Transfer data goes to your monitoring tool for review.

What this licence does not cover

  • Issuing e-money or stored-value balances, which only an EMI or a bank may do.
  • Accepting deposits or other repayable funds from the public.
  • Credit funded from customer money. Any credit must be linked to a payment service and paid for from your own funds.
  • Adding payment services after authorisation without asking first. A change in the type of services needs a new CSSF authorisation.
Your market

What the regulator asks about your IT

Each requirement, what the platform gives you for it and who owns it after launch.

1Safeguarding by the end of the next business day (Article 14 of the Law of 10 November 2009)

Transfer and balance reports per customer, with timestamps, from which your team works out what must sit in the separate account or be covered by insurance.

Your finance team, on platform data
2Advance notice to the CSSF before outsourcing operational functions

A description of our service, hosting, subcontractors, audit rights and exit plan to attach to your notification.

You, with our input
3Complete payer and payee data with each order

Names, account numbers and addresses captured at onboarding and carried with each order.

Shared
4AML risk assessment of corridors and clients

Client limits, onboarding questionnaires per client type and data exports to the monitoring and screening tools you choose.

Your compliance officer
5Participation conditions for designated payment systems (Article 57-2)

Documentation of fund flows, ICT arrangements and how open orders would be completed or returned, for the description of safeguarding, governance and winding-up plan the law asks for.

You, with our input
6Instant credit transfers and payee name check

SEPA Instant flows plus the name and IBAN data used for the check.

You, with your bank or payments provider
Luxembourg

Payment rails and providers

Rails your customers can use

SEPA Credit TransferSEPA InstantSWIFTBatch payoutsInternal transfers
24/7real-time processing, no batch window
60+payment and provider integrations connected
150+companies run on Crassula
15+languages the platform speaks
Luxembourg

Dates to plan around

Rules that change what you have to build, in the order they apply.

  1. 30 Dec 2024

    The recast Transfer of Funds Regulation applies, so every transfer carries complete payer and payee data.

  2. 4 Apr 2025

    A Luxembourg law implementing the Instant Payments Regulation set the conditions under which payment institutions may join designated payment systems.

  3. 9 Oct 2025

    Payment institutions in the euro area offer a payee name check on every credit transfer.

  4. 9 Apr 2027

    A payment institution offering euro credit transfers must send and receive them as instant payments.

  5. 10 Jul 2027

    The EU AML Regulation applies, with harmonised due diligence rules for payment institutions.

  6. Around 2028

    PSD3 and the Payment Services Regulation are agreed but still await publication in the Official Journal.

Payment institution

Applying to the CSSF as a payment institution? Name us in your file.

The law gives the CSSF three months from a complete file, with an outer limit of 12 months after which silence counts as refusal. A remittance or payout business shortens the questions by showing exactly how each order is checked, booked and protected.

Talk to us about your application

Crassula provides technology and documentation support. We do not provide legal or regulatory advice and cannot guarantee the outcome of an application.

  1. 01

    A platform you can demonstrate

    A configured environment to show the regulator, not slides.

  2. 02

    The technical part of your application, prepared

    Payment flows, security, outsourcing, ICT risk under DORA and continuity sections of your CSSF payment institution file.

  3. 03

    Providers lined up

    Banking, safeguarding and KYC providers from our network, matched to your licence.

A business traveller checking a phone before a journey.
Money Transfer

How a payout business gets to launch

A Luxembourg firm wants to pay commissions and distributions for fund distributors to recipients across Europe and beyond. Its application covers money remittance and payment execution, and in our environment it shows the CSSF how a batch is uploaded, approved, converted and released.

Before going live it notifies the CSSF of the outsourced platform, sets the safeguarding account and agrees an insurance cover for peak days. Euro payouts leave over SEPA Instant, other currencies over SWIFT through a connected provider.

Further reading: the Luxembourg EMI and PI guide and our guide to payment institution licensing.

Guides

Read the licence guides

Explore all guidesLicensing, payments, cards and core banking, explained by our team.
Luxembourg · Payment institution

FAQ

The questions teams ask us before a first call.

Not covered here?Bring your question to a demo with our team.
How much capital does a Luxembourg payment institution need?
EUR 20,000 for money remittance only, EUR 50,000 for payment initiation and EUR 125,000 for the other payment services, such as running payment accounts or executing transfers.
What are the CSSF fees for a payment institution?
EUR 30,000 to examine a new application and EUR 8,000 to extend an authorisation to more services. The yearly fee is EUR 30,000 up to EUR 1 billion of payment volume and EUR 40,000 above, reduced to EUR 25,000 in the first three years.
What if the CSSF does not decide in time?
A decision must come within 12 months of the application at the latest. Without one, the request counts as refused, and you can take the case to the Tribunal administratif within one month.
Can we protect funds with insurance instead of a separate account?
Yes. The law accepts an insurance policy or comparable guarantee from an insurer or credit institution outside your group, for the amount you would otherwise segregate. Tell the CSSF before you switch methods.
Can a payment institution join a payment system directly?
Since the April 2025 amendment, a payment institution can take part in a designated payment system if it has described its safeguarding, governance and ICT arrangements and has a winding-up plan. The system operator still sets its own admission rules.
Does the platform file suspicious transaction reports?
No. It sends order and customer data to your monitoring tool. Analysing alerts and reporting to the Luxembourg FIU stays with your compliance officer.
Money Transfer

Explore your launch market

Luxembourg · Payment institution

What a Luxembourg payment institution can run

Tell us your licence and country. We will map the rails, providers and documents you need.

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