Top Payment Methods in France
Payment methods in France generally follow worldwide and European trends. However, there are also a few idiosyncracies of which business owners should be aware before setting up shop in this iconic country.
The first point to take into account is that there are local payment methods that are must-haves for selling to French nationals. France’s status as the most visited country in the world also makes it essential to accept a range of international payment methods and currencies.
Consider offering the following payment methods when launching a business in France.
Credit and Debit Cards
Credit and debit cards are the most popular payment method in France, as they are in the wider European Union. According to the latest figures published by Statista, 57% of transactions in France were completed using credit or debit cards in 2020 [1].
Cartes Bancaires (CB) is overwhelmingly the most popular type of card in France. 85% of credit card transactions were made using CB in 2021. This compares to 5% of transactions with Mastercard and 3% with Visa. CB partners with both of these credit card networks and issues co-branded credit and debit cards. CB can be used for in-store and e-commerce transactions.
Debit cards tend to be more popular than credit cards in France, as in other European countries like Switzerland. Merchants must be aware of the existence of deferred debit cards in France. In this case, the bank takes one monthly withdrawal to cover all of the cardholder’s payments for the month. This is significantly different from instant debits and can affect companies’ cash flow.
Contactless Payments in France
Contactless payments are widely available in France. Customers need to enter their PIN for purchases over €50.
Online Shopping Is on the Rise
20% of one-time payments in France were made online in 2022. This was one of the highest rates in Europe and shows a considerable shift towards online payments from 2019, when only 12% of one-time payments in France were made online.
The rising popularity of online shopping is significant for merchants looking to start an e-commerce business in France. Merchants can boost the appeal of online purchases by working with reliable payment service providers to process customer payments.
Direct Debit
Direct debits are the second most popular payment method in France after credit and debit cards. 19.1% of transactions in France were direct debits in 2020 [1]. Direct debits are a great choice for businesses that offer subscription services and take monthly recurring payments.
Businesses with subscription business models will require a payment processor with an integrated global payment gateway to process recurring payments from their customers securely.
SEPA Direct Debit
A SEPA direct debit allows EU consumers to make international bank transfers within the European Union at the same cost as a national bank transfer. European merchants can benefit from this system to encourage international customers by processing international payments through their payment service provider at no extra cost to the customer.
Buy Now, Pay Later
Buy Now, Pay Later (BNPL) payments have increased in popularity in France over the past few years. International companies like Klarna dominate the market while local options like Alma and Floa provide interesting alternatives for French consumers.
The total transaction value for BNPL payments in France in 2023 was almost $12 billion. This is projected to rise to almost $22 billion by 2029. BNPL is just one of several alternative payment methods that give French consumers more options.
There are a few key advantages to offering BNPL as a payment method. Firstly, it offers customers payment flexibility and encourages them to complete higher-ticket purchases. It can also attract new customers who might not have been planning to make a purchase at that time.
Mobile Payments
Digital payment methods like mobile payments are growing in popularity in France. The number of card payments made with a mobile phone increased by 137% in France between 2021 and 2022 (page 1 of the linked PDF).
Bank Transfers
Bank transfers are a common payment method for large purchases or to cover monthly bills. Bank transfers are also a good option for larger purchases within the EU because banks must charge the same rate for EU transactions as they do for the equivalent domestic transaction. Online banking has made it easy to make an online payment via transfer.
Customers require a SWIFT or BIC code to identify the company’s bank and the business’s IBAN (International Bank Account Number). This makes bank transfers a less appealing option for one-time e-commerce purchases. However, it’s a worthwhile option for customers who sign up for a monthly payment or subscription and prefer this payment method over card-on-file.
Cash
Cash is still a very significant payment method in France. In fact, according to the Banque de France’s latest data, cash remained the most used payment method at the point of sale in 2022. This is a statistic that’s echoed throughout the wider European Union despite the rising availability of digital payment methods.
European Central Bank figures reveal that 94% of French SMEs still accept cash payments in 2024. French brick-and-mortar businesses understandably are turning their focus to digital and electronic payment methods. However, accepting cash is still a vital way to stay competitive on the high street.
Cheques
France is one of the remaining countries where many consumers still use cheques. Though cheque usage is falling, 890.62 million cheques were still written in 2023.
According to a report from the Federal Bank of Atlanta, France is the joint-second biggest user of cheques in the world with Canada (page 4 of the PDF). However, the popularity of the cheque still remained fairly low overall. In 2021, cheques accounted for 4.1% of all cashless payments in France.
Most French banks offer customers a free chequebook. Cheques are often used for making large payments while avoiding the fees that are charged for an electronic bank transfer. However, be aware that merchants may be charged high transaction fees for cashing a cheque from another EU country.
The Success of the Cheque in France
The continuing (yet declining) popularity of the cheque is an interesting phenomenon in France as it both conforms to and contrasts with other trends in France and Europe. A cheque is a cashless payment method, albeit a fairly antiquated one. The trend towards paperless payments will likely mean the continuing decline of the cheque in years to come.
Meet French Customers Where They Are
Proactive business owners in France need to offer both tech-forward payment methods that are rising in popularity and traditional payment methods that continue to be valued by the French population. For French business owners, this means offering electronic payments by card, mobile devices, direct debit, bank transfers, and BNPL alongside cash and cheque.
The payments industry is dynamic, and business owners must be prepared to adapt to changing customer expectations to remain competitive. Integrating payment processing solutions that allow you to accept all of the top payment methods in France is essential for running a successful business.
