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The France Payment Market is anticipated to grow with a CAGR of 14.7% during the forecast period (2022- 2027). The payment market is benefiting from increased digitalization. The growing popularity of smartphones and widespread internet access drive demand for mobile financial transactions. Customers are also being encouraged to use contactless payment platforms by government programs. Furthermore, integrating artificial intelligence and machine learning is anticipated to strengthen the security system, boosting consumer confidence in the payment system.
- The payment industry in France is constantly evolving. As part of its National Retail Payments Strategy (2019-2024), Banque de France has devised several initiatives that commercial banks and payment service providers are implementing to minimize reliance on cash and move the country closer to a cashless society.
- The proposal involves encouraging merchants to accept card payments for amounts as little as GBP 1 (USD1.12), putting contactless capabilities into every payment terminal in the country, and improving electronic payment security. With these protections in place, card-based transactions are expected to expand even more over the projection period.
- Social payments, popularised by Paypal, allow users to send money via social media. Almost every central social media platform has its version. Apple Pay, Google Wallet, Facebook Payments, Twitter Buy, and similar services are available. These means of payment function similarly to a digital bank account. Users can buy things on social media sites or online merchants that accept these payment methods.
- New technology risks, particularly operational risks associated with the new payment ecosystem, with cyber-attacks at the top of the list. Reduced time to market for innovative solutions and the utilization of emerging technologies such as blockchain and new biometric identification, Artificial intelligence, and approaches contribute to increased vulnerabilities—security flaws whose magnitude is difficult to assess. These are a few factors that may challenge market growth.
- In March 2020, Federation Bancaire Francaise upped the limit on contactless cards in the country from GBP 30 (USD 33.68) to GBP 50 (USD 56.14) in response to COVID-19 to encourage customers to utilize contactless payments instead of cash for necessary purchases. As a result, customers who make payments of up to GBP 50 do not need to enter their PIN (USD 56.14).
Scope of the Report
Customers pay for a product or service using a payment method. Cash, credit cards, prepaid cards, debit cards, and mobile payments may be accepted in a brick-and-mortar establishment. Online payment methods for an e-commerce firm may include credit or debit card alternatives, prepaid cards, direct bank account transfers, payment processors, and more.
The France payments market is segmented by two modes of payment - POS and e-commerce. E-commerce payments include online purchases of goods and services such as on e-commerce websites and online booking of travel and accommodation. However, it does not include online purchases of motor vehicles, real estate, utility bill payments (such as water, heating, and electricity), mortgage payments, loans, credit card bills, or purchases of shares and bonds. As for POS, all transactions that occur at the physical point of sale are included in the scope of the market. It includes traditional in-store transactions and all face-to-face transactions, regardless of where they occur. Cash is also considered for both cases (cash-on-delivery for e-commerce sales).
|By Mode of Payment|
|By End-user Industry|
|Other End-user Industries|
Key Market Trends
E-Commerce is Observing Significant Growth
- The European e-commerce business has expanded rapidly, providing exciting potential for online retailers in various industries. France is a key consumer market in Europe and a significant e-commerce market. Regarding Internet penetration, percentage of e-commerce consumers, and average expenditure. According to the E-commerce Foundation, in 2020, the e-commerce sector in France is estimated to account for 4.79% of the country's GDP and is expected to increase in the forecasted period.
- According to the Federation of e-commerce and distance selling, online retailers in France making more than ten million euros per year accounted for about 74.5 % of all e-commerce revenue in 2021. With one to ten million euros yearly revenues, E-merchants accounted for 17.3% of total e-commerce revenue.
- Furthermore, pertaining to cross-border e-commerce, Belgium was the first among the five European nations where French e-retailers sold their goods or services in 2021. In that year, most e-commerce enterprises in France that sell worldwide made sales to Belgium. Belgium was closely followed by Spain.
- Fashion has always been an essential part of French culture, and while it is well-known worldwide, it is also one of the country's mainstays of e-commerce. French people are price sensitive; businesses can benefit significantly from offers, discounts, and bargains. This appears to be true regardless of whether the brand is a high-end or low-cost retailer. This is mainly because customers can discover enormous selections of brands online, whereas the discount store was only profitable as a physical location. Small and large brands have benefited from the ease of shipping.
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Retail Sector is a key Factor for Market Growth
- Many retailers have been investing in high-tech improvements for their storefronts and increasing their multichannel offering, taking advantage of the industry's growing spectrum of digital solutions.
- Online competition intensifies as pure players expand their beauty offerings - Amazon, Cdiscount, Zalando, and ASOS now have beauty sections on their websites. Cosmetic companies can now market their products directly through eCommerce.
- The agile startup or online pureplay business is no longer the only preserve of the online and digital retail world. Customers have begun seeing major established retail brands fight back by adopting digital strategies. Modern retailers are altering their core, experimenting with digital products and experiences, and investigating the metaverse as part of their digital transformation.
- The prospect of the 2024 Olympic Games, in addition to the "Maison France's" international prestige, is a fresh factor of appeal for foreign brands looking to enhance their position on the French market. The enthusiasm of the leading luxury merchants is backed up by a considerable increase in the turnover of the major luxury groups on a global scale, with a strong French representation in the international rankings.
- According to Banque de France, In April 2022, turnover in retail trade was down by 0.8% against March 2022, adjusted for seasonal and working day take-ups. Food sales increased by 1.9%, whereas manufactured goods fell by 3.0%, impacted by the decrease in new car sales and furniture sales, which declined by 6.9% and 7.5%, respectively. Over the past three months (Jan2022-March2022), manufactured goods sales rose by 3.7%, driven by consumer electronics, which fell by 6.5% in April but rose by 6.5% over the three months.
The France Payment market is moderately consolidated with a significant number of players. However, a few large players in the market, such as Apple Pay, occupy a considerable share of the market. The competitive rivalry in the market is high, with various players trying to increase their revenue. Players such as Amazon Pay and Samsung Pay are also trying to increase their share in the market. As such, the market players are undertaking various strategies such as enhancing the product portfolio, among various others. Moreover, the growing e-commerce industry is also encouraging the development of payment methods across the country.
- March 2022 - The platform for banking-as-a-service in France The French regulator ACPR has given Treezor permission to launch a full range of payment services. The company now holds all of the country's payment service licenses. These licenses will allow the company to accept cash deposits through the network while also allowing the execution of payment transactions using a payment card or similar system linked to a credit facility.
- December 2021 - Numeral, a French startup, raised GBP13 million (USD 14.7 million) in a seed round led by Balderton Capital to assist the company in growing from ten to forty employees, improving product development, and increasing its bank coverage.
- February 2022 - Alma, a French fintech company that allows customers to buy now and pay later, has raised GBP 210 million in investment. It plans to use the funds to grow throughout Europe, including Austria, Luxemburg, Portugal, Ireland, and the Netherlands. The company is already well-established in Belgium, Germany, Italy, and Spain.
- December 2021 - SurePay, SEPAMail.EU and StreamMind have announced the debut of the world's first cross-border IBAN Check/Payee Confirmation service. When initiating cross-border payments between France and the Netherlands, firms and banks can check that the account information submitted matches the intended beneficiary. It is an essential first step toward a pan-European solution in the battle against fraud.
Table of Contents
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Evolution of the payments landscape in the country
4.5 Key market trends pertaining to the growth of cashless transaction in the country
4.6 Impact of COVID-19 on the payments market in the country
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 High Proliferation of E-commerce, including the rise of m-commerce and cross-border e-commerce supported by the increase in purchasing power
5.1.2 Bank Transfers is a Popular Payment Method for High Ticket Items
5.1.3 SMBs are Using Different Payment Methods to Stabilize Sales
5.2 Market Challenges
5.2.1 Cyber Security Challenges
5.3 Market Opportunities
5.3.1 Move towards Cashless Society
5.3.2 New Entrants to Drive Innovation Leading to Higher Adoption
5.4 Key Regulations and Standards in the Digital Payments Industry
5.5 Analysis of major case studies and use-cases
5.6 Analysis of key demographic trends and patterns related to payments industry in the country (Coverage to include Population, Internet Penetration, Banking Penetration/Unbanking Population, Age & Income etc.)
5.7 Analysis of the increasing emphasis on customer satisfaction and convergence of global trends in the country
5.8 Analysis of cash displacement and rise of contactless payment modes in the country
6. Market Segmentation
6.1 By Mode of Payment
6.1.1 Point of Sale
188.8.131.52 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
184.108.40.206 Digital Wallet (includes Mobile Wallets)
6.1.2 Online Sale
220.127.116.11 Card Payments (includes Debit Cards, Credit Cards, Bank Financing Prepaid Cards)
18.104.22.168 Digital Wallet (includes Mobile Wallets)
22.214.171.124 Others (includes Cash on Delivery, Bank Transfer, and Buy Now, Pay Later)
6.2 By End-user Industry
6.2.5 Other End-user Industries
7. Competitive Landscape
*List Not Exhaustive
7.1 Company Profiles
7.1.1 Apple Pay
7.1.3 Samsung Pay
7.1.4 Carrefour Pay
7.1.5 Google Pay
7.1.7 Lyf pay
8. Investment Analysis
9. Future Outlook of the Market
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Frequently Asked Questions
What is the study period of this market?
The France Payments Market market is studied from 2020 - 2027.
What is the growth rate of France Payments Market?
The France Payments Market is growing at a CAGR of 14.7% over the next 5 years.
Who are the key players in France Payments Market?
Apple Pay, PayLib, Samsung Pay, Carrefour Pay, Google Pay are the major companies operating in France Payments Market.