Payments Landscape in France: Opportunities and Risks to 2021
French payments market is mature and highly competitive, registering the highest turnover per card for 2017 among peers including the UK, the US, Germany, Italy, Spain, and Canada. Average annual spend per card is also the highest in France. Debit and charge are the most popular types of cards, while credit card usage is low due to the debt-averse nature of French consumers. Many are still heavy users of cash, but those who do possess cards - particularly debit and deferred debit cards - use them frequently at the POS.
Credit card usage is low in France due to aversion to debt among French consumers, stringent credit card issuance guidelines, and the availability of private-label cards, which unlike bank-issued credit cards carry less stringent qualification requirements. Private-label card issuers collaborate with supermarkets, car repair workshops, and retailers of digital content to issue co-branded private-label cards.
France has a highly developed POS infrastructure, with a large number of POS terminals overall as well as a large proportion of contactless-compatible terminals, driven in part by the French government’s efforts. A typical feature of France’s payment card market is the availability of multi-functional cards, whereby a single payment card is integrated with more than one function, providing access to several accounts via one card. The most popular combination is debit and credit facilities.
French e-commerce market is highly developed, ranking as the fifth-largest globally in terms of spending behind China, the US, the UK, and Japan. The e-commerce market posted a compound annual growth rate (CAGR) of around 13% between 2013 and 2017 as consumers became increasingly comfortable shopping online. French consumers use their payment cards heavily online, driven by comfort, convenience, and security.
The report Payments Landscape in France: Opportunities and Risks to 2021, provide top-level market analysis, information and insights into the French cards and payments industry, including -
Companies mentioned in this report:
- Current and forecast values for each market in the French cards and payments industry, including debit, credit, and charge cards.
- Detailed insights into payment instruments including credit transfers, direct debit, cheques, cash, and payment cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis and payment methods.
- Analysis of various market drivers and regulations governing the French cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit, and charge cards.
Crédit Agricole, Crédit Mutuel, Société Générale, Crédit du Nord, La Banque Postale, Groupe BPCE, Oney Bank, BNP Paribas, CB, Visa, Mastercard, American Express, Diners Club, JCB, and UnionPay InternationalScope
Reasons to buy
- The emergence of digital-only banks is likely to accelerate a shift towards electronic payments in France. In June 2013, BNP Paribas launched a mobile-only bank called Hello, while in January 2014 AXA Banque launched Soon. In December 2015, German-based financial services provider N26 launched its digital-only offering in France, and by the end of 2017 telecom network provider Orange plans to launch mobile-only bank Orange Bank.
- The introduction of maintenance fees on savings and current accounts by major banks is anticipated to increase competition in the French debit card market. With profit margins shrinking and interest rates low, banks have made moves to introduce account fees. BNP Paribas introduced a €2.50 ($2.60) basic account fee in November 2015. BNP Paribas, Société Générale, and Caisse d’Epargne Île-de-France introduced current account fees of €15-30 ($15.80-31.60), and La Banque Postale raised account fees from € 4.20 ($4.40) to €6.20 ($6.50).
- To drive the adoption of contactless cards, the government increased the limit on contactless transactions from €20 ($21) to €30 ($31.60) effective from October 2017. Contactless payments, first introduced in France in 2012, have met with widespread acceptance among French consumers. According to Observatoire de la Sécurité des Moyens de Paiement, a national body intended to exchange information related to the security of cashless payments, a total of 628.5 million contactless payments were made in France in 2016, accounting for €6.5bn ($6.8bn). The average transaction value for contactless payments was €12.50 ($13.20) in 2016. The increased contactless transaction limit is expected to further increase average transaction value for contactless transactions during the forecast period.
- 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.