The annual value of card transactions in the France cards and payments market was $741.7 billion in 2021. The report analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period. It also offers information on the country’s competitive landscape, including market shares of issuers and schemes.
France cards and payments market overview
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What are the market dynamics in the cards and payments market in France?
The French payment card market is dominated by Cartes Bancaires (CB), a national interbank network. CB cards are co-badged with international card schemes; domestic transactions are processed via CB, while international transactions are carried out via international networks. CB’s wide acceptance network has helped ensure its dominance. To enhance the security of online transactions, in July 2019, CB introduced FAST’R by CB – an online payment security service compliant with the international 3D-Secure EMV standard. To provide enhanced convenience, CB enables its card holders to store their cards and make payments via mobile payment solutions such as Apple Pay.
What are the key segments in the cards and payments market in France?
The key segments in the Spain cards and payments market include card-based payments, merchant acquiring, in-Store payments, ecommerce payments, buy now pay later payments, mobile payments, P2P payments, bill payments, and alternative payments.
Merchant acquiring market in France
Banks in France – particularly the largest banks – operate as both issuers and acquirers. Credit Mutuel – CIC is the country’s leading acquirer; it provides an installment service to its merchants, enabling them to offer installment payment facilities to their customers.
Credit Mutuel – CIC also offers a mobile POS solution called Monetico Mobile +, which allows merchants to accept electronic payments via mobile devices. The payment solution is compatible with both Android and iOS. It is designed to accept chip and PIN, contactless cards, as well as NFC-compatible mobile wallets.
Card-based payments market in France
The French payment card market is mature, with every consumer holding at least one payment card due to strong financial inclusiveness in the country. French consumers are well acquainted with electronic payment methods. This can be attributed to the efforts of the French government and banks to increase banking penetration and offer value-added services and discounts on card payments, thereby limiting consumers’ dependence on cash.
In-store payments market in France
Essential products such as food and drink and motor fuel rank among the top categories for in-store payments, with these two collectively accounting for over half of total in-store payment transaction value. Strict government restrictions amid the COVID-19 pandemic resulted in store closures. Consequently, in-store purchases of non-essential goods were severely affected, while spending in sectors such as travel and accommodation declined massively. However, the gradual easing of lockdown restrictions and the countrywide vaccination program have helped boost in-store purchases.
E-commerce payments market in France
The French ecommerce market is highly developed and is one of the largest globally in terms of transaction value, behind only China, the US, the UK, and Japan. High internet and smartphone penetration, improved infrastructure, and increasing consumer confidence in online transactions have driven ecommerce market growth.
Buy now pay later market in France
Buy now pay later services are gradually gaining prominence in France. In August 2020, Australia-based buy now pay later provider Afterpay expanded into France by acquiring European fintech Pagantis, offering consumers a buy now pay later option for both online and in-store transactions. Meanwhile, Klarna offers its Pay in 3 feature, allowing customers to spread the cost of purchases over three interest-free payments charged every 30 days. The solution was launched in France in June 2021.
Mobile payments market in France
Mobile wallet adoption and usage remain low in France. This is a result of the strong preference for payment cards among French consumers. Nevertheless, uptake of mobile wallets is expected to rise, with a growing number of financial institutions extending their support to mobile wallets such as Apple Pay and Google Pay. Over 25 French banks and payment services providers now offer Apple Pay to their customers.
P2P payments market in France
Online bank transfers and PayPal are favored for both domestic and international P2P transfers, primarily due to their convenience. Domestic mobile payment solutions such as Paylib, Lydia, and Lyf are also used for P2P fund transfers. In July 2019, PayPal launched its international money transfer service Xoom in Europe, including France. This enables users to transfer funds internationally to 130 markets in less than five minutes.
Bill payments market in France
Direct debit is the preferred payment option for bills in France. Most utility service providers allow customers to set up direct debit instructions to deduct bill payments automatically from their bank account. Customers can also make payments through service providers’ websites. Service providers in France enable customers to make payments via TIP SEPA, a coupon attached to invoices with payment details including IBAN and Bank Identifier Code. Customers sign the TIP coupon and send it to their service provider along with the invoice. The amount is then deducted from the customer’s bank account.
Alternative payments market in France
Alternative payments in the cards and payments market in France include PayPal, Apple Pay, Samsung Pay, Carrefour Pay, Google Pay, Amazon Pay, Lydia, Click to Pay, Klarna, paysafecard, MobilePay, and AfterPay.
France cards and payments market, by segments
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Which are the key companies in the cards and payments market in France?
The key companies in the cards and payments market in France are Credit Agricole, Groupe BPCE, Credit Mutuel, La Banque Postale, Societe Generale Group, BNP Paribas, and HSBC
France cards and payments market, by key companies
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Market report scope
|Market size 2021||$741.7 billion|
|Key segments||Card-Based Payments, E-Commerce Payments, In-Store payments, Merchant Acquiring, Buy Now Pay Later Payments, Mobile Payments, P2P Payments, Bill Payments, and Alternative Payments.|
|Key companies||Credit Agricole, Groupe BPCE, Credit Mutuel, La Banque Postale, Societe Generale Group, BNP Paribas, and HSBC|
- The SEPA Instant Credit Transfer (SCT Inst) service has been available in France since November 2018. Funds can be transferred instantly 24 hours a day, seven days a week, 365 days a year. In July 2020, a group of 16 European banks from France, Germany, Spain, Belgium, and the Netherlands announced the future launch of a European-level unified payment system called the European Payments Initiative (EPI). The new solution aims to create a unified payment solution leveraging existing SCT Inst infrastructure; it also plans to offer cards and digital wallets for consumers and merchants across Europe. The solution will cover all types of transactions, including in-store, online, and P2P payments using payment cards and digital wallets, as well as cash withdrawals. In February 2022, the EPI Interim Company announced that while most participating banks from France, Germany, and Belgium have confirmed their willingness to proceed with EPI, banks from other countries are uncertain about their future participation.
- Banks in France are increasing account fees each year. The CCSF noted that for online-only banks, these costs are almost three times lower on average compared to traditional banks. These increases have prompted consumers to switch to low-cost bank accounts, which could further popularize the digital-only banking model.
- Germany’s N26 is an app-based bank that launched in France in January 2017. It offers a free bank account and Mastercard debit card, as well as free real-time fund transfers. As of June 2021, the bank had 2 million customers in France. Meanwhile, in December 2020, BNP Paribas’s digital-only subsidiary Hello bank! launched a Visa-branded dual-functionality card called Hello Prime Virtual card to capitalize on the growing number of online payments.
Reasons to Buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the French cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the French cards and payments industry.
- Assess the competitive dynamics in the French cards and payments industry.
- Gain insights into marketing strategies used for various card types in France.
- Gain insights into key regulations governing the French cards and payments industry.
La Banque Postale
Societe Generale Group
Table of Contents
Table of Contents
Buy Now Pay Later
Payment Infrastructure and Regulation
Frequently Asked Questions
The cards and payments market size in France was valued at $741.7 billion in the year 2021.
Card-based payments, ecommerce payments, buy now pay later payments, merchant acquiring, In-Store payments, mobile payments, P2P payments, bill payments, and alternative payments are the key segments in the French cards and payments market.
Credit Agricole, Groupe BPCE, Credit Mutuel, La Banque Postale, Societe Generale Group, BNP Paribas, and HSBC are the key companies in the French cards and payments market.