France Credit Card Transactions Market Overview, 2029

France Credit Card Transactions Market Overview, 2029

In France, debit cards and Cartes Bancaires (CB), a local scheme with considerable clout, are the primary payment actors. Despite lower credit card penetration than nations such as the United States or the United Kingdom, credit card usage is significantly high, with about 200 transactions per card each year. However, the scene is shifting due to the e-commerce boom, which is driving an increase in digital transactions. Contactless payments and mobile wallets like Apple Pay and PayLib are growing in popularity as people appreciate the simplicity of digital payment options. Cash is a major cultural preference among the French, accounting for approximately 36% of transactions. This choice is affected by a long-standing desire for tangible money as well as security concerns. While digital payments are on the rise, the continued ubiquity of cash poses an obstacle to full digital adoption. France distinguishes itself from its regional peers, such as the United States and the United Kingdom, because of its unique payment landscape, which favours debit cards and cash over credit cards. Unlike the United States and United Kingdom, where credit card penetration is substantially higher, French consumers prefer debit cards and cash purchases. This distinct choice has moulded the country's financial services landscape, with a heavy emphasis on debit card use and minimal reliance on credit. The popularity of debit cards indicates a cultural preference for responsible spending and avoiding debt buildup, which contrasts with the credit-centric cultures of the United States and the United Kingdom.

According to the research report “France Credit Card Transaction Market Research Report, 2029,"" published by Actual Market Research, the France Credit Card Transaction market is expected to grow with more than 6.50% CAGR from 2024 to 2029. Several reasons are contributing to the expansion of digital payments in France. The e-commerce business is rapidly expanding, propelled by rising smartphone usage and government attempts to promote cashless transactions. However, alongside these growth factors, there are some significant difficulties. Security worries about fraud and data breaches persist, preventing wider adoption of digital payment methods. In terms of legislation and regulations, France prioritises security in its payment system. The country follows stringent laws such as PSD2 (Payment Services Directive 2) to ensure safe online transactions and protect consumer interests. These restrictions are critical to maintaining trust in digital payment systems while also limiting the risks associated with fraud and cyber threats. The credit card transaction market does not have raw material supply issues. Unlike industries based on physical things, such as manufacturing or agriculture, the financial services sector is primarily concerned with intangible assets and transactions. As a result, considerations regarding raw material availability have no direct impact on the operations or dynamics of the credit card transaction business.

The credit card market encompasses various card types tailored to different consumer needs. General purpose credit cards, such as Visa, Mastercard, American Express, and Discover, offer versatility for a wide range of purchases and transactions, both online and in-person. These cards often come with rewards programs, cashback incentives, and robust security features. In contrast, specialty credit cards cater to specific demographics or interests, providing tailored rewards and benefits. Examples include airline miles cards, hotel rewards cards, and store credit cards. Additionally, there's a category referred to as ""Other"" credit cards, which encompasses less common types like prepaid cards, secured credit cards, corporate credit cards, and charge cards. Prepaid cards are loaded with a predetermined amount of funds, while secured credit cards require a security deposit, often used for credit building. Corporate credit cards are issued for business expenses, and charge cards necessitate full monthly balance payments. Providers like Visa and Mastercard play pivotal roles in offering credit card services in collaboration with financial institutions. Moreover, credit card applications span various sectors, including food and groceries, health and pharmacy, consumer electronics, and other areas like restaurants and bars, media and entertainment, and travel and tourism. Each application segment reflects the diverse usage of credit cards across different industries, highlighting the integral role credit cards play in facilitating everyday transactions and lifestyle needs.

The French payments market is enjoying a tremendous surge in e-commerce, with ongoing development signalling a bright future for digital transactions. This trend is propelled by consumers' growing preference for online purchasing, which is motivated by considerations such as convenience, accessibility, and a greater range of options. As more organisations adopt digital channels, there is an increased demand for efficient and secure payment solutions to allow online transactions. This creates a lucrative opportunity for payment industry participants to develop and adjust their solutions to match the changing needs of both businesses and customers. The French payments sector is characterised by an increasing willingness to embrace new technologies, such as rapid payments and biometrics, which have the potential to transform the way transactions are carried out. Instant payments allow for real-time financial transfers, which improves transaction speed and efficiency, while biometrics provide a more secure and convenient authentication technique, decreasing reliance on traditional authentication mechanisms such as passwords and PINs. By adopting these technologies, market players can not only differentiate themselves from competitors, but also meet the growing demand for seamless and secure payment experiences across many channels.

The Covid-19 pandemic has caused substantial changes in customer behaviour, notably in terms of payment preferences. With social distancing measures and hygiene concerns driving a shift away from physical currency, contactless payments and e-commerce have grown in popularity. This increased use of digital transactions has had a favourable impact on the credit card business, as consumers seek more convenient, sanitary, and secure payment options. The pandemic-induced acceleration of contactless payments and e-commerce has not only revolutionised consumer behaviours, but has also compelled financial institutions and merchants to adapt their infrastructure and offers to suit the market's changing expectations. As a result, the digital transactions business in France has seen significant growth and innovation, spurred by the need to adapt to the new normal brought about by the Covid-19 pandemic.
Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Credit Card Transactions market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Card Type
• General Purpose
• Specialty & Other Credit Cards

By Provider
• Visa
• Master-card
• Others

By Application
• Food & Groceries
• Health & Pharmacy
• Consumer Electronics
• Other Application

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Credit Card Transactions industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.