France Cards & Payments Market Report

TABLE OF CONTENTS
Key facts
Payments environment
Cards market
E-commerce
Fintech and mobile payments
Credit card profitability
Networks
Issuers
Merchant acquiring
Regulatory environment

France Country Report Data Tables
(All 2017-2026F unless otherwise stated)

Appendix I: Payments environment
1: Demographic and economic indicators.
2: Ownership of key consumer devices.
3: Internet usage by population.
4: Access points: 2017-23F.
5: B2C e-commerce payment methods: 2017-23F.

Appendix II: Cards market

6: Total card payment metrics.
7: Contactless cards metrics.
8: Credit card numbers.
9: Total credit card metrics.
10: Credit cards profitability indicators.
11: Debit card numbers.
12: Debit card metrics.

Appendix III: Mobile payments

13: Mobile proximity payment metrics.

Appendix IV: Profit pool

14: France market profit pool including credit card numbers, billed volumes, outstandings, interest incomes, net interest revenues, merchant revenues, card fee revenues, other non-interest incomes, total revenues, net credit losses, operating expenses, total expenses, pre-tax profits, merchant service charges, rollover rates, APR, net credit losses to outstandings, operating costs to revenues, ROA (pre-tax profits to outstandings).

(All below 2017-2024F unless otherwise stated)

Appendix V: The networks

15: Networks' credit card market shares.
16: Credit card interchange fees by network.
17: Networks' debit card market shares.
18: Networks' debit card numbers.
19: Debit card interchange fees by network.

Appendix VI: Key retail banks and issuers

20: Key credit card issuers market shares by credit card numbers: 2019-24F.
21: Key issuers market shares in credit card outstandings: 2019-24F.
22: Key debit card issuers market shares by debit card numbers: 2019-24F.

Appendix VII: Acquiring and processing

23: Merchant acquirer credit card market share: 2023E.
24: Credit card merchant service charges: 2017-26F.
25: Merchant acquirer debit card market share: 2023E.
26: Debit card merchant service charges: 2017-26F.
27: Credit card issuer/issuing processor relationships
28: Credit card acquirer/acquiring processor relationships
29: Credit card issuing processor market shares by card numbers: 2023E.
30: Credit card acquiring processor market shares by the number of POS transactions: 2023E.

Payments Environment
The government and central bank are promoting the adoption of contactless, mobile payments and instant transfers in place of cash and cheques for both consumers and businesses.

Cards Market
France's payment cards market is developed: at the end of 2022, per 100 adults, there were 185 cards – of which the majority were debit cards, accounting for almost two-thirds of total transactions. This market is unusual in that the standard credit/debit delineation is absent. Cards often contain multiple functions and are referred to simply as 'bank cards'.

E-commerce
Ranked third in Europe, France is surpassed in e-commerce only by Germany and Britain. The market had an estimated value of almost $157 billion in 2022, having increased almost seventy per cent in value since 2017.

Fintech and mobile
A new wave of challenger banks has entered this market. These include homegrown operations as well as European institutions taking advantage of the EU's passporting rules. According to a recent report from Paylib, half of consumers intend to use contactless mobile payment in stores during 2022, while 42 per cent said they were interested in transferring funds via mobile.

Credit Card Profitability
In the absence of a fully developed revolving-credit-cards market, profitability in the sector has been somewhat restricted. However, local issuers have successfully adjusted their business models to accommodate French consumers' attitudes towards credit.

Networks
Over three-quarters of cards issued here are branded with the domestic Cartes Bancaires network, of which a majority are co-badged with Visa or Mastercard. Domestic transactions on co-badged cards have traditionally been processed through CB, with the Visa or Mastercard network used for international transactions

Issuers
Large retailers, including Auchan and Carrefour, compete with banks in the retail banking market through their consumer finance subsidiaries: Banque Accord and Banque Carrefour, respectively. Both banks have a significant presence in the revolving credit and pay-later card markets.

Merchant Acquiring
In contrast to many European markets, where long-entrenched domestic acquirers are being squeezed out by specialist competitors, acquiring in France is carried out by the issuing banks. French acquirers have largely focused on their domestic market. Although the market is competitive, several banks have formed alliances with rivals to share processing costs.

Regulatory Environment
Prudential Supervision and Resolution Authority (ACPR): is responsible for financial supervision in France. The ACPR is attached to the central bank (Banque de France) and was formed in 2010 to foster a more robust and integrated regulatory environment.