The French card payments market is forecast to grow at a compound annual growth rate (CAGR) of 5.3% between 2024 and 2028 to reach EUR1.05 trillion ($1.14 trillion) in 2028, supported by a constant consumer shift towards electronic payments, according to GlobalData, a leading data and analytics company.

GlobalData’s Payment Cards Analytics, reveals that card payment value in France registered a growth of 11.1% in 2022, driven by a rise in consumer spending. The value is estimated to have registered a growth of 8.5% to reach EUR799.1 billion ($864.0 billion) in 2023.

Ravi Sharma, Lead Banking and Payments Analyst at GlobalData, comments: “The French card payments market is well developed, with consumers being prolific users of payment cards. The frequency of card payments in the country is estimated at 180.9 transactions per card per year in 2023. The convenience of electronic payments, robust payment infrastructure, the growing preference for contactless payments, and e-commerce market growth are all facilitating increased payment card usage.”

Cash remains an integral part of the French consumer payments landscape, particularly for lower-value transactions. However, there has been a consistent decline in cash usage, while electronic payment methods have witnessed an increase. With the government promoting card acceptance for transactions as low as EUR1.0 ($1.07), the frequency of card-based payments is set to increase further at the expense of cash.

In addition, the integration of contactless payment options in transportation is also contributing to card payment volumes. According to the domestic card scheme, Cartes Bancaires (CB), 7.1 billion CB contactless payments were made in 2022 representing 50% of all CB payments for the year. A high preference for contactless payments suggests a continual rise in such payments and points toward a future where contactless payments are poised to expand significantly.

Also, the EU-wide cap on interchange fee for debit and credit card transactions at 0.2% and 0.3%, respectively, has also led to an increase in card acceptance among merchants. Meanwhile, to encourage card adoption of POS terminals among SMEs, payment service providers such as Square and PayPal offer low-cost POS solutions – Square Register and PayPal Zettle.

Sharma concludes: “Although the economic slowdown will pose some challenges in the short run, France’s card payments market is expected to rebound and is anticipated to continue its growth trajectory, registering 7.3% growth to reach EUR857.3 billion ($927 billion) in 2024, supported by high consumer preference for electronic payments and well-developed payments infrastructure.”