Payment Cards in France 2007

Published by: Datamonitor

Published: Feb. 6, 2008 - 81 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

Introduction

Market context

Competitor and product overview

Forecasting the payment card market in France

Table of Contents

Table of figures

Table of tables

Introduction

What is this report about?

Scope of the report

Structure of report

Market Context

Introduction

Country overview

Demographics

Population

Economy

GDP

Inflation

Distribution of income (GINI Coefficient)

Segmentation of liquid assets

Unemployment

Market size

Payment cards in the context of consumer payments

Payment card statistics

Penetration of cards

Number of cards in issue

Number of transactions

Value of transactions

Card acceptance

ATM statistics

POS statistics

Regulatory environment

Structure of French retail banking

Commercial banks

Mutual and co-operative banks

Municipal credit banks (Caisses de crédit municipal)

There are only 20 municipal credit banks in France

The French banking structure is more complex than it seems

The hybrid structure means that the differentiation between commercial and mutual banks is blurring

Finance houses are important players in the retail financial market

Other players in the retail banking market

Creation of a postal bank

Regulation of French retail banking

Regulatory bodies

Banque de France

Commission Bancaire

The Credit Institutions and Investments Firms Committee (CECEI)

The Banking and Financial Regulatory Committee (CRBF)

Banking associations

Groupement des Cartes Bancaires (CB)

Association Française des Etablissements de Crédit et des Entreprises d'Investissements (AFECEI)

Association Française des Sociétés Financières (ASF)

Fédération Bancaire Française (FBF)

Other noteworthy associations

Association Française des Banques (AFB)

Conseil National du Crédit et du Titre (advisory bodies)

Comité Consultatif

Credit bureaus

Regulatory issues in the market

European Consumer Credit Directive (CCD)

Despite being well intentioned, there are key problems with the directive

Key issues

SEPA

After missing the original deadline, banks have agreed a new SEPA start date

The French SEPA Committee is overseeing the migration to the European framework

EMV and fraud

France: aligning with the international standard

EMV migration in France

The EMV migration in France is another success story

Competitor and Product overview

Introduction

Card scheme market shares

Pay now

Number of cards in issue

Value of transactions

Credit cards

Number of cards in issue

Value of transactions

Deferred debit and charge cards

Number of cards

Value of transactions

Card issuer market shares

Pay now card issuer market shares

Credit card issuer market shares

Deferred debit and charge card issuer market shares

Competitor developments

There has been consolidation in the domestic market over the past five years

2002 - Sofinco acquires part of the Finaref cards portfolio

2003 - Crédit Lyonnais and Crédit Agricole form a megamerger

2004 - Banque Accord acquires Egg France

Merger and acquisition activity has been moderate more recently

Several domestic players have began to expand abroad

Société Générale looks outside of France for further expansion

BNP Paribas is another example of a bank expanding in Central and Eastern Europe

Alliances and partnerships

CB announced it is to allow co-branding alliances and partnerships

Foreign players enter into co-branded partnerships in France

There are a number of alliances and partnerships among consumer credit companies

Product analysis

Pay later product design

Loyalty programs

Caisses d'Epargne has a partnership with S'Miles

Crédit Agricole offers 'Le Bonus Gold MasterCard'

Cetelem offers prepaid cards as an incentive for using credit cards

Oney offers cashback with its Carte Verte

Product innovation

Contactless technology trials are starting to take place

Banque Populaire launches debit card for women

Carte Bleue launches prepaid cards

Cetelem offers prepaid cards as an incentive for using credit cards

Forecasting the Payment Card Market in France

Introduction

Forecasting the pay now card market

Forecasting the credit card market

Forecasting the charge and deferred debit card market

Conclusions

The French payment card market is sophisticated and is poised for future growth

Currently the pay later market is dominated by deferred debit and private label cards

However, new legislation and introduction of SEPA Framework are opening new opportunities for credit card issuers

Contactless payments are starting to make their mark

APPENDIX

Supplementary data

Market context

Forecasting the payment card market in France

Definitions

AAGR

Affinity card

CAGR

Co-branded card

Credit card

Deferred debit and charge card

EMV

EPC

ePurse

Merchant Service Charge

Pay now cards

POS terminal

Private label cards

Methodology

Cards and Payments Database

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: GDP per capita for selected European countries, 2006

Table 2: GINI Coefficient for selected European countries

Table 3: Segmentation of liquid assets in France in 2006

Table 4: Main players under each pillar, 2006

Table 5: Examples of finance houses, 2003

Table 6: Annual fees in the deferred debit card market, 2008

Table 7: Fees and APRs applicable to revolving credit cards in France, 2008

Table 8: Datamonitor's forecast for the pay now card market, 2006-11f

Table 9: Datamonitor's forecast for the credit card market, 2006-11f

Table 10: Datamonitor's forecast for the deferred debit and charge card market, 2006-11f

Table 11: Population numbers and demographic splits in France and other major European countries, 2006

Table 12: Population over 20 in France and other major European countries, 2006

Table 13: GDP at current rates across European countries, 2006

Table 14: Real GDP growth rates based on constant rates to 2000, 2002-06

Table 15: Inflation in selected European countries, 2002-06

Table 16: Penetration level of cards in selected European countries, 2006

Table 17: The total number of ATM terminals and the number of people per ATM, 2002-06

Table 18: The total number of POS terminals and the number of people per terminal, 2002-06

Table 19: Value of transactions made by consumers segmented by payment type, 2002-06

Table 20: Fraud losses in France, 2002-06

Table 21: Pay now card forecast forecasts indexed to 2006

Table 22: Credit card forecast forecasts indexed to 2006

Table 23: Deferred debit and charge card market forecasts indexed to 2006

Table 24: Current relevant Datamonitor publications, 2007

Table 25: Future relevant Datamonitor publications, 2008

List of Figures

Figure 1: Country overview, 2006

Figure 2: France has the second highest population in Europe, 2006

Figure 3: France has one of the lowest proportions of population over the age of 20 in Europe, 2006

Figure 4: France has the third highest GDP in Europe, 2006

Figure 5: France has enjoyed a period of positive economic growth from 2002 to 2006

Figure 6: The French economy is dominated by the services sector, while the agriculture sector accounts for 2.0% of economic output, 2006

Figure 7: French inflation has been kept at or below 2% per annum in recent years, 2002-06

Figure 8: In France direct debits and cheques are preferred methods of payment after cash but pay later cards are also popular, 2002-06

Figure 9: France has the lowest penetration level of cards in Europe, 2006

Figure 10: Charge and deferred debit cards dominate the French market, 2002-06

Figure 11: Charge and deferred debit and charge cards account for the largest share of total general purpose card transactions, 2002-06

Figure 12: Charge and deferred debit cards were most commonly used cards in 2006

Figure 13: Deferred debit and charge cards account for the largest share of transaction values, 2002-06

Figure 14: Average transaction values are highest on credit cards, 2002-06

Figure 15: The growth in ATM terminals slowed down in 2006

Figure 16: The total number of POS terminals has risen steadily, 2002-06

Figure 17: The three pillars of the French banking structure, 2008

Figure 18: Regulatory overview of France, 2008

Figure 19: Total fraud losses have fallen since 2003 but picked up in 2006

Figure 20: Visa holds the leading position in the pay now market, 2002-06

Figure 21: Visa accounts for 78.7% of total pay now card spend, 2002-06

Figure 22: Visa had the largest number of credit cards in issue in 2006

Figure 23: Visa accounts for the majority of transaction values, 2002-06

Figure 24: MasterCard accounts for nearly a half of total charge and deferred debit cards in issue, 2002-06

Figure 25: MasterCard in the largest deferred debit and charge card scheme in terms of transaction values, 2002-06

Figure 26: Crédit Mutuel/CIC is the leading pay now card issuer, 2006

Figure 27: Crédit Agricole is the leading issuer of credit cards in France, 2006

Figure 28: Crédit Agricole is the leading issuer of deferred debit and charge cards, 2006

Figure 29: Main merger and acquisition activities in the French market, 2002-2007

Figure 30: Growth in the number of transactions forecasted to drive the pay now market forward, 2006-11f

Figure 31: Card usage of credit cards is predicted to be primary driver in the market, 2006-11f

Figure 32: Card usage of deferred debit and charge cards is predicted to be primary driver of growth in the market, 2006-11f

Abstract

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