Robert Bueninck, CEO of Unzer, a German-headquartered payment service provider that offers a range of financial services, primarily focused on online and offline payment processing, in an exclusive interview with Paperjam, discusses how Luxembourg merchants are responding to the all-in-one omnichannel payments solution offerings. He also shares insights into the challenges and opportunities of entering the market, Unzer’s technological advancements and what the future holds for payments--touching on topics such as cloud migration, PSD2 compliance and the evolving landscape of digital payments.
Kangkan Halder: What has been the uptake since Unzer launched in Luxembourg, and how does the market compare to others?
Robert Bueninck: Luxembourg merchants are highly interested in getting everything from a single provider, which is exactly what we offer. We provide both point of sale (Pos) systems and online payment solutions, meaning our customers have just one point of contact. There is also strong demand for our all-in-one mini cash register, which is particularly popular with food trucks, market stalls and event vendors.
While the market in Luxembourg is relatively small, it is dominated by a few suppliers, so sales is very personalised and close to the customer. Just like in Germany, we aim to collaborate with partners and associations to offer our merchants stellar service and a comprehensive product suite.
What are the key takeaways from operating in Luxembourg so far? Have you identified any specific opportunities or challenges?
Launching new services in a new market always takes some time. The payment card mix in Luxembourg differs from other markets, and we are actively adapting to meet these specific needs. Our main opportunity lies in being a single-source provider for cash registers, payment terminals and e-commerce solutions.
How does the Luxembourg market differ from others in terms of payment behaviour and fintech adoption?
The Luxembourgish market is a much further in the journey of digitisation than Germany and Austria. That’s why it’s a great fit for our state-of-the-art product suite. It has a dynamic and burgeoning startup ecosystem, as well as a robust digital landscape, offering opportunities for growth. Practical considerations also play a role; we have an established team on the ground in Luxembourg and operate under a Luxembourg license, which logically positions us to extend our product offerings to the Luxembourgish market.
Are there any new developments planned for Unzer’s operations in Luxembourg?
One of our ongoing projects is to offer our services and contracts in French. We aim to implement this in 2025.
Payment is all about ease and security. Innovation allows us to make payments even easier and seamless while increasing its security.
How many employees does Unzer currently have in Luxembourg and do you plan to expand your presence further?
Our Luxembourg office plays a vital role in our operations, and we are continuing to expand it. Recently, we moved from our charming but relatively small office in Grevenmacher to a new, larger space in Munsbach. Over the past few months, we’ve grown our Luxembourg team from 30 to around 40 members, representing all key functions within the organisation.
From a technical standpoint, what were the main reasons behind Unzer’s shift to cloud infrastructure?
From a technical standpoint, our shift to cloud infrastructure was driven by several key factors. Our on-premises IT environment had become increasingly complex and time-consuming to manage due to multiple acquisitions over the years. This fragmentation made it difficult to maintain the agility and flexibility needed to serve our growing customer base effectively.
We wanted an infrastructure that could scale instantly to accommodate more than 25m transactions per month and provide reliable, real-time payments 24/7. Migrating to Amazon Web Services (AWS) allowed us to consolidate our complex IT landscape, making management more efficient. The cloud environment enables us to provision capacity on demand, scaling resources in seconds, which is crucial in the fast-paced and competitive payments industry.
Security and compliance were also significant considerations. Operating in the cloud with AWS has increased our security measures and simplified compliance with the payment card industry data security standard (PCI DSS) and German Federal Financial Supervisory Authority (Bafin) banking regulations. The confirmation from Bafin that AWS met all compliance criteria reinforced our decision. Additionally, access to innovative services in the cloud helps us develop new features faster, enhancing the overall customer experience.
Could you elaborate on Unzer’s development and compliance with PSD2?
Certainly! We are fully compliant with PSD2 regulations. For example, we have implemented strong customer authentication (SCA) as required. This involves multi-factor authentication processes that ensure only authorised users can initiate and approve transactions, significantly reducing the risk of fraud and unauthorised access. We are also committed to rigorous data protection standards. All customer data is securely handled and stored in compliance with both PSD2 and the general data protection regulation (GDPR). We conduct regular audits and updates to ensure our systems meet the latest regulatory requirements and security best practices.
We are seeing a clear shift from cash to card across all our markets, especially in traditionally cash-heavy countries like Germany and Austria
Changing customer behaviour is challenging. What specific steps is Unzer taking to encourage digital payments?
This is less about us and more about the digital payment methods themselves and the merchants. We operate more behind the scenes, enabling our merchants to meet their customers’ needs. However, we are seeing a clear shift from cash to card across all our markets, especially in traditionally cash-heavy countries like Germany and Austria.
Digital wallets like Apple Pay, Google Pay, Klarna, Amazon Pay and Paypal are gaining popularity, especially among younger generations. The reason is clear: these wallets allow for instant electronic transactions without the need for physical cash or cards. As a result, the shift to digital payments largely depends on the security and convenience they offer to end customers.
What innovations do you think will shape the future of payments and retail experiences?
That’s a great question, and it’s not easy to answer with so many innovations in payment and retail. I could talk for hours, but to keep it short: One of the most important developments is that the blending of online and offline experiences into unified commerce is accelerating. The difference between the digital and the physical will continue to fade and retailers will adapt to that by offering a single unified experience. Doing this right is complex and requires significant investment, and Unzer aims to help also small to medium-sized merchants to be able to adapt and give their customers this experience.
Payment is all about ease and security. Innovation allows us to make payments even easier and seamless while increasing its security. AI can help with fraud detection for example, newer ways for identifying who you are like fingerprints and facial recognition will find their use cases and could eliminate the need to pay with something physical like a card or a phone.
The future of payments is exciting, but success will depend on seamless integration into daily life. The toughest thing is to change a consumer’s habit. Customers will only change their behaviour and preferences if they see a clear benefit. Therefore, incremental ease and trust will be key to any adoption.
With the possibility of a digital euro as early as 2026, is Unzer developing in this area, including A2A payments? If so, could you provide some specifics?
Absolutely! We’re currently developing our own direct bank transfer solution, which we plan to launch soon. However, we want to avoid sharing too much too early, so stay tuned for more updates.