Companies issuing digital food stamps can operate without a licence
Davey Gravy, Unsplash
Luxembourg's Minister of Finance, Gilles Roth, has responded to a parliamentary enquiry by MP Sven Clement on the regulation of digital food stamps (Chèques repas). In his letter of 4 February 2025, he confirmed that companies issuing these coupons may not obtain a CSSF licence if their activities fall within the exemptions of the law of 10 November 2009 on payment services.
For digital coupons, Article 3(k) of the said law applies. This exemption allows such companies to avoid the need to obtain authorisation from the Financial Sector Supervisory Commission (CSSF) and to be exempt from its control. This principle has been confirmed by CSSF Circular 22/812, based on the recommendations of the European Banking Authority (EBA).
However, where digital payment instruments do not fall within the exemptions, issuers are required to obtain a CSSF licence and comply with the customer funds protection requirements under section 24-10 of the 2009 Act. In this case, companies must segregate customer funds from other assets, provide financial guarantees (e.g. insurance) and comply with consumer protection standards.
The minister stressed that there are no plans to change the legislation in this area yet, as the current rules are based on the pan-European directive, which provides for maximum harmonisation between EU countries.
The rules governing digital food stamps in Luxembourg will therefore remain unchanged, confirming the stability of the current system and the lack of need for additional control measures by the CSSF.
