Top Payment Methods In France That Your Business Needs to Know

The French economy is still catching up, especially after the pandemic. Despite the various financial setbacks, there is an increase in online spending and purchasing, as there was a remarkable surge in online payments. The pandemic ushered in a digital era since many consumers feared using credit cards and cash at point-of-sale outlets.

All this has changed since France's Payments Market will grow at a CAGR of 14.7%. During the entire period, mobile transactions contribute 50% of the total online sales in the European market. With the adoption of digital payment methods, nearly 44% of Europeans prefer to make payments via e-wallets and other digital modes.

On similar grounds, BNPL payments will grow by 20.1% in 2023, recording a solid growth curve within the French economy. 

Top 6 Payment Methods in France

Discover the six essential payment methods in France! Explore the various modes of payment prevalent in the country and ensure you are up to date with the top options.

1. Credit/Debit Cards

Credit and debit cards continue to be in demand, despite the ongoing challenges with plastic currency and the related pandemic-induced fears.

However, given these challenges, 57% of the native population still prefers to pay with their cards for online purchases. 

Carte Bancaire, the country's national card system, encompasses all credit and debit cards, including Visa and Mastercard. However, you should know the associated transaction fee using French credit/debit cards. 

2. Digital/Mobile Wallets

Like debit and credit cards, digital and mobile wallets have established a firm foothold within the French payment structure. 

Since payments are fast, effortless, and almost instant, there is notable ongoing growth in adopting these payment modes within the European markets.  

There is a fusion of native and international applications which promote digital payments and bring the consumers closer to the merchants. 

On the native side, Paylib, one of the most well-known digital wallets, allows you to add cards commonly supported by the Carte Bancaire (CB) system. Some other natively homegrown applications, including Lyf and Lydia, are equally prevalent in the market. 

You will also find payment wallets such as Google Pay, Apple Pay, and PayPal ruling the hearts of French consumers. Close to 41% of consumers prefer paying via PayPal for online purchases.

3. Mobile Contactless Payments

The French continue to develop a voracious appetite for another form of digital payments, which includes making payments from their mobiles and watches.

There are plenty of new payment modes mushrooming all over France, some of which include:  

1. Monese and Revolut: Both service providers are posing tough competition to traditional banks and issuing their cards and accounts for initiating seamless financial transactions.
2. Banking mobile apps: BNP Paribas or La Banque Postale.
3. Money transferring apps: Paylib, Lydia, and Lyf Pay.
4. International payment brands: Apple Pay, Amazon Pay, and Google Pay.

4. Checks

Despite the growth of digital payment modes, merchants accept paper checks to promote the financial economy. Many banks issue free checkbooks to consumers to promote and retain their loyal customers.

While this might seem inconvenient and cumbersome, you can still use it as an alternate payment method to purchase goods and services online and offline.

An evident benefit of using checks for payments is the lack of a transaction fee, which isn't levied on this mode of payment.

5. Buy Now, Pay Later (BNPL): 

Buy Now, Pay Later (BNPL) transactions are constantly increasing in France. It is convenient for consumers to pay for online/offline transactions without owning a credit card.

There are plenty of service providers in the market, each of which offers this service. Some renowned names like Klarna, Affirm, Zip, and Afterpay are affluent brands that have carved a niche by providing easy-to-use services. 

Subsequently, to stay consistent and relevant with the financial trends, even PayPal, Apple Pay, and Amazon Pay offer BNPL options to their customers.

6. Bank Transfers

The last payment method worth mentioning is bank transfers. When consumers make a large payment, they turn to bank transfers to ensure a seamless payment.

Since this is not a convenient payment method, it's not a widely preferred option in France. Every financial transaction incurs a fee, given the conversion charges incurred in cross-country and domestic transfers.

Local Payment Methods and Rising Complexities for Businesses

The consumer demands a diverse spectrum of payment method systems that have set the location for ushering in a large-scale change to the existing financial transaction practices.

Disruption of these systems creates a lot of ripples; some lead toward benefits, while others develop challenges for regular consumers. 

However, there are potential challenges that companies can't overlook when focusing on the benefits of digital money since millions of merchants have never subscribed to any digital payment methods prevalent here.

For instance, they must scrutinize the best payment method alternative to regularization to avoid transaction charges, refund charges, and rental service costs on multiple payment methods. Contradictorily, multi-payment method support translates into better conversion rates.

Finally, there are concerns surrounding the effective adoption and secure implementation of these payment methods daily amidst the increasing cybersecurity threats such as phishing, social engineering, device compromise, system breaches, and identity theft.

How can you integrate modern payment methods for the Fintech revolution while availing of all these benefits? inai has got just the solution for your payment method aggregation woes.

How inai Helps You With French Payment Methods?

inai is a unique payment method aggregator with over 300+ international payment methods. We support customers from different geographies in their native currencies and other payment method preferences.

Our platform is ideal for large-scale international and small-scale enterprises with minimal tech-knowhow. With inai by your side, your business can avail of a low-code/no-code payment method integration service.

Our services help you render a unified payment system that gives your customers a personalized transaction experience. Our payment integration tool guarantees PCI-DSS and GDPR-compliant service for your business, sales protection for you and your customers, and even a dashboard to maintain an end-to-end watch on sales and conduct analytics, amongst other things.

With inai, you can see a data-driven uptick in conversions and revenues.