The online payment market - France

In 2020, the online payments market continued to evolve rapidly among payment solution providers, driven by increased e-commerce activity and innovation. Although the French market shows a certain hesitancy towards digital wallets and mobile payment solutions compared to other European countries, e-commerce sales in France have been rising steadily and are set to exceed the 100 billion euro mark. globally, online purchases reached $6.7 trillion in 2023, with China leading in terms of volume and the UK dominating in Europe with 149.7 billion transactions.

The Payment Services Directive 2 (PSD2) introduced in Europe imposes "strong authentication" to enhance transaction security, which could impact on ease of use for consumers. Mobile payment solutions have shown strong potential growth trajectories, expanding the role of smartphones in online shopping. Crypto-currencies remained a speculative and volatile payment method, with regulations still unclear.

Security remains a crucial concern in online payments, with constant innovation aimed at gaining consumer trust. The market is highly competitive, with established international players such as PayPal, Apple Pay and Google Pay, as well as emerging fintech solutions tapping the market, underlining the importance of innovation and security. Local startups are also marking their territory; Lydia, for example, boasts over a million users, reflecting the dynamic nature of this market segment.

The payment services market has attracted a variety of new players, including technology giants and fintech startups, with a continuing trend towards consolidation through mergers and acquisitions among established players such as Worldline and Ingenico. Fees charged by payment service providers have varied, with some leveraging their extensive networks to charge higher fees. The increased penetration of online payment solutions varies by sector, with apparel, culture and tourism being more digitally oriented, while other sectors, such as multimedia and DIY, retain predominantly offline purchasing methods.

Analysis of online payment market demand trends in France

The online payment market in France, as in the rest of the world, is undergoing a significant transformation, driven by the rapid growth of e-commerce. French e-commerce sales have soared to between 85 and 95 billion euros, indicating a substantial increase on previous years. This boom can be attributed to a growing range of offers within Europe, an increase in e-commerce sites and the proliferation of marketplaces. More and more French consumers are buying online, with around 60% of the population making purchases online. However, compared to European averages, the French are more conservative in their online purchasing habits, with around 32% buying less than once a month, compared to the EU average of around 25%.

Although a little behind its neighbors, the French market offers enormous potential, given that a significant proportion - around 84% of 18-39 year-olds - prefer online shopping. In terms of payment preferences, credit cards dominate the French market. Other payment methods, such as PayPal or virtual wallets, have a smaller share. Credit cards account for 61% of online transactions, while services such as PayPal account for 29%, and other solutions appear marginal.

Although mobile payment solutions are less widely used in France than in other European countries, they are showing strong growth prospects. This is evidenced by the soaring projections for the smartphone payment segment, which suggest higher growth rates than the industry average.

The French market is also characterized by a high number of e-commerce sites. An exponential growth of e-commerce platforms has been observed. These platforms have different penetration rates for online payment solutions, depending on their specific sectors.

The main players in the online payment market

• PayPal: Pioneering giant PayPal is at the forefront of the online payment sector. Acquired by eBay in July 2002, this forerunner has consolidated its position thanks to user trust and widespread acceptance. The platform has moved beyond its origins as a payment processor for eBay to become a comprehensive financial services provider, boasting a global presence. Its user-friendly interface and robust security features have made it a top choice for consumers wary of the risks associated with online payments. The ability to carry out transactions without disclosing card details has reinforced its dominant position and maintained consumer confidence.
  
  
• Ingenico: the agile acquirer The Ingenico group has distinguished itself through strategic acquisitions that have enabled it to expand its presence worldwide. This French company has not only added robust payment solutions, but has also exploited the network effect by bringing complementary companies into its fold. Ingenico's acquisition of Ogone, a major player specializing in online and mobile payment services, marked a turning point, enabling the company to offer a more diversified range of payment options and meet the evolving demands of online merchants and consumers alike.
  
  
• Worldline: a fast-growing competitor Worldline has continued to grow relentlessly, embarking on a series of acquisitions that have enabled it to rapidly increase its stature in the sector. Notable acquisitions include Banksys and SIX Payment Services, the latter a colossal $2.3 billion deal. Thanks to these strategic moves, Worldline has not only expanded its capabilities, but also built a solid infrastructure capable of meeting the vast demands of the online payments market. These acquisitions have also demonstrated Worldline's commitment to ensuring a large-scale operational presence and providing comprehensive financial technology solutions.
  
  
• Lydia: The disruptive startup A star child on the French fintech scene, Lydia has experienced exponential growth, with over a million users. Its record growth testifies to the startup's ability to tap into the millennial market, a demographic group increasingly inclined towards digital consumption and innovative financial services. Lydia's less conventional marketing approach, which relies heavily on word-of-mouth, complements its disruptive presence in a landscape dominated by established financial institutions.
  
  
• Google Pay and Apple Pay: the incursion of technology titans Not to be outdone by the incumbent financial institutions, technology giants Google and Apple have entered the fray with their own solutions: Google Pay and Apple Pay. These services draw on the extensive ecosystems of their respective companies, and integrate seamlessly into the lives of users who are consumers.

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 28/12/2021

Summary and extracts

List of charts

• Evolution du chiffre d'affaires du e-commerce
• E-commerce sales
• Evolution du nombre de transactions en ligne
• Part des internautes et de l'ensemble de la population française faisant des achats sur Internet
• Produits et services achetés
• Fréquence d'achat de bien en ligne
• Amount spent on e-commerce per user
• Croissance du CA du e-commerce concernant les ventes aux professionnels
• Modes de paiement utilisés pour l'e-commerce
• Degree of trust and attachment to different payment methods