According to the latest Digital & Card Payment Yearbooks, the French payments landscape has undergone significant changes, driven by regulatory reforms, technological advancements, and evolving consumer behaviours.
With the revised Payment Services Directive (PSD2) and the rise of digital banking, the payment ecosystem in France is more dynamic than ever.
Here is a comprehensive overview of the key trends and statistics shaping the payments sector in France in 2024.
Digital Transformation and Consumer Behaviour
The shift towards digital payments in France has been notable, particularly following the COVID-19 pandemic.
The population of 68.46 million is increasingly leveraging mobile devices and internet banking, with 115.62 million payment cards in circulation, averaging 1.69 cards per capita.
Consumers prefer digital banking apps that offer seamless access to multiple accounts and enable payments directly from their bank accounts. This shift is driven by the demand for secure, cost-effective, and user-friendly payment solutions.
Competing Payment Ecosystems
The French payment market is characterized by two primary ecosystems: the card payment ecosystem and the cardless Open Banking payment ecosystem. Traditional card payments facilitated by major issuers and acquirers dominate the market. In 2022, there were 77.92 million debit cards and 17.01 million delayed debit cards in circulation.
Meanwhile, the Open Banking framework under PSD2 is enabling direct account-to-account (A2A) payments, fostering innovation among FinTech firms and enhancing consumer choice and convenience.
Legal Framework and Regulations
The legal framework for payment services in France is heavily influenced by European Union directives, including PSD2, the General Data Protection Regulation (GDPR), and the E-Money Directive (EMD).
These regulations ensure the security and efficiency of digital payments while protecting consumer data. PSD2 has been pivotal in promoting Open Banking, mandating secure access to payment accounts, and fostering a competitive landscape for payment service providers.
Market Dynamics and Key Players
The French payment market is highly competitive, with over 30 major card issuers, 17 active acquirers, and numerous prominent payment service providers (PSPs).
Leading players such as Crédit Agricole Group, BNP Paribas Group, BPCE Group, Société Générale Group, and Crédit Mutuel-CIC dominate the market.
In 2022, there were 2,837,058 POS terminals, facilitating 17.75 billion card transactions worth €736.3 billion. The competition has driven significant innovation, particularly in contactless payments and mobile banking solutions.
Emerging Trends and Technologies
Several emerging trends are shaping the future of payments in France. The adoption of contactless payments has surged, with 78.98% of all girocard transactions being contactless by the end of 2022. Digital A2A payments have also gained momentum, facilitated by services like Lyf Pay and the increasing use of QR codes and biometric authentication for secure transactions.
The French payment market is also seeing the rise of mobile payment solutions such as Paylib and Apple Pay. Additionally, ATM withdrawals amounted to 1.18 billion transactions with a total value of €144.27 billion, reflecting the ongoing shift towards digital payment methods.
Conclusion
France’s payments landscape is at the forefront of digital innovation, driven by robust regulatory frameworks, technological advancements, and evolving consumer preferences.
As digital and mobile payment solutions continue to develop, France is poised to maintain its leadership in the global payments industry, offering a secure, efficient, and convenient ecosystem for both consumers and businesses.
The ability to adapt to new technologies and regulatory changes ensures that France’s payment landscape remains competitive and innovative, setting a benchmark for other countries in the digital payments’ domain.
France’s payments market is a dynamic and rapidly evolving sector, with a strong legal framework, a competitive market landscape, and a forward-thinking approach to digital and mobile payment solutions. With continued innovation and regulatory support, France is well-positioned to lead the global payments industry in the coming years.
Key Statistics
Population: 68.46 million, with 1.69 cards per capita in circulation.
Total Payment Cards: 115.62 million, including 77.92 million debit cards and 17.01 million delayed debit cards.
Card Payments: 17.75 billion transactions with a total value of €736.3 billion.
POS Terminals: 2,837,058.
ATM Withdrawals: 1.18 billion transactions with a total value of €144.27 billion.
Digital A2A Payments: 4.999 billion credit transfers valued at €36,265.2 billion and 4.914 billion direct debits valued at €2,040.5 billion.
France’s ability to adapt to new technologies and regulatory changes ensures its payment landscape remains competitive and innovative, setting a benchmark for other countries in the digital payments’ domain.
The Digital & Card Payment Yearbooks provide the latest data on the European and Eurasian digital payment and card payment markets at granular country and regional level.
To download “France” CLICK HERE
The post The French payments landscape – A detailed analysis appeared first on Payments Cards & Mobile.