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France

French payment landscape

France is one of the biggest e-commerce markets in Europe. The growth rate in e-commerce is expected to be around 9% until 2021. The established m-commerce market will nearly double in the next few years, accounting for more than a third of e-commerce by 2020.

Cross-border businesses and France

French consumers frequent online shops from other countries, especially neighboring countries such as Germany (41%), Great Britain (29%) and Belgium (15%). Certain French consumers even digitally shop across the ocean from American and Chinese retailers.

French retailers earn up to 10% of their revenue from abroad - mostly selling in Belgium and Luxembourg (42%), Spain (27%) and Italy (26%).

Credit cards profiting from low interest rate policies

Card payments make up more than half of the transactions. The majority of these transactions are made by debit cards. However, credit cards have fought back against this in the last two years due to low interest rate policies. Banks competing for business now offer attractive conditions for credit card users. Interchange policies have also added to the building popularity of credit cards, as interchange fee limits for credit cards are higher. Furthermore, the widespread use of 3D Secure technology helped popularizing card payments and contactless, as it addressed consumers' concerns about security. Mobile payment, on the other hand, have yet to succeed in this aspect. While Apple Pay enter the French market in July 2016 and Orange Cash in June 2016, mobile payments are still less popular than in neighboring countries.

Carte Bancaire dominates the market

The market for card payments in France is dominated by French card providers. The leading credit card providers are Groupe Crédit Agricole, Groupe BNP Paribas and the BPCE (Banques Populaires Caisses d’Epargne Groupe). The Carte Bancaire, co-branded with both VISA and MasterCard, is the most popular card on the French market. Nearly every retailer accepts them and they can be used globally through VISA and MasterCard. They are generally accepted through a local acquirer. Contactless payment is also being pushed strongly by leading banks. As it’s beginning to establish itself on the market, contactless payment is similar to card payment in terms of fraud and security.

Recent measures taken by the European Union indicate a decline in cash payments. In 2016, the European Central Bank ceased to produce the 500 euro banknote. The same year, the validity period of cheques was reduced to six months instead of a year. Cheques are still widely used in France, contrary to most other European countries, as older people remain loyal to the payment method. In June 2017, TIPs (Titre Interbancaire de Paiement, paper-based interbank payment orders) were officially withdrawn and replaced by existing SEPAs.

France and fraud management

France endures one of the highest rates of fraud in the European market. In 2015, the fraud rate came out at 0.04%. Currently, cross-border business transactions with other countries through French cards are often subject to fraud and security risks. Fraud management and prevention is therefore an important part of the payment process in France. It is recommended to use authorization verifications through 3D Secure when processing these payments.

In an effort to combat money laundering and the hidden financing of terrorism, the French government imposed a monthly ceiling of 1000 euro for payments and top-ups on open loop prepaid cards. This measure came into force in January 2017.

Compare all Payment Providers

cc

Charge debit card 22%

22

suitcase

E-wallet 21%

21

credit-card

Credit card 16%

16

credit-card-alt

Debit card 15%

15

bank

Bank transfer 12%

12

TOP 5 PAYMENT METHODS

desktop

Desktop 79%

79

mobile

Mobile 21%

21

 

85 Bil. USD

0

E-COMMERCE SALES IN 2016

users

Population: 67 Mil.

67

internet-explorer

Internet Usage: 86%

86

OTHERS

Source:

Euromonitor International - Financial Cards and Payments in France 2017

Worldpay - Global payments report, Nov 2017