French Market - What's the breakdown of Online Card Payments? 2. I would like to know the percentage of people who pay for their purchases completely upfront VS those who pay in installments VS those who pay on invoicing.
Hello! Thanks for your question about the breakdown of online card payments in France. The short version is that 39% of people pay online with debit cards, followed by 22% with credit cards. Invoicing represents 25% of online payments.
Below you will find a deep dive of my methodology and findings.
To answer your question, I started by searching for recent reports, studies or surveys covering card payment methods in France. My search was then refined to look for online payment methods and e-commerce reports. Finally, I searched for information about payment cards' market share in France. I looked for french sites and international sites, in French and English. The sources I found were from 2015,2016 and 2017. I have searched in industry reports, databases, company websites, and governmental databases.
I have made some calculations about the proportion of cards in France:
-With debit function 44 539 000/94 243 000 = 47.26%
-With delayed debit function 8 840 000/94 243 000= 9.4%
-With credit function 4 752 000/94 243 000 = 5%
-With debit and/or delayed debit function 5 804 000/94 243 000 = 6.1%
-With credit and/or delayed debit function 14 939 000/94 243 000 = 15.8%
-With e-money function 2 749 000/94 243 000= 2.9%
-Total number of cards 94 243 000 = 100%
Online payment cards in France
There are 5 ways of making online card payments in France: The main ones are CB, VISA, Mastercard and the other two ways available are American Express and Paysafecard.
VISA represents 56% of online payments, followed by MasterCard with 24%, CB with 3% and American Express with 1%.
Online payment by debit card is considered the most used in France with 39% followed by credit cards with 22%.
CB are usually co-branded with either Visa or MasterCard. However, a recent change in legislation allows these major international companies to offer their cards without having to be co-branded with CB.
Information about CB
CB is the main payment method used in France for online payments, even when co-branded with MasterCard or Visa. There were 66.5 billion CB active payment cards in 2016 in France, that were used to make 10.64 billion euros'payments, with an average of 43.76 euros for each. The CB card payment system is managed by the "Groupement des Cartes Bancaires CB", which means the Banking Card CB Group.
Invoice or Card Payments
According to a 2016 report on e-commerce payment methods, France is one of the European countries that has the highest percentage of online card usage with around 65% compared to 25% for invoices, CORD or other means of online payment.
Proportion of payment cards by type in France
A payment statistics report by the European Central Bank has compiled 2016 data for types of payment cards in France (name and number of cards in circulation as well as proportion).
-With debit function 44 539 000 (47.26%)
-With delayed debit function 8 840 000 (9.4%)
-With credit function 4 752 000 (5%)
-With debit and/or delayed debit function 5 804 000 (6.1%)
-With credit and/or delayed debit function 14 939 000 (15.8%)
-With e-money function 2 749 000 (2.9%)
-Total number of cards 94 243 000 (100%)
Change of payment cards legislation Impact
In June 2016, French laws changed in regard to the networks that were allowed to process card payments in France. The main change concerned the end of CB as the only local network operator in the country. This allowed Visa and MasterCard to enter the market without the need for co-branding with CB. Despite slow progress in the market, this new law could have repercussions in the near future for the market shares of Visa and MasterCard.
To wrap it up, I have searched extensively for reports and surveys on online payment methods in France. I have found that 39% of people pay online with debit cards, followed by 22% with credit cards. 25% of online payments are made through invoicing. I have also discovered that VISA represents 56% of online payments, followed by MasterCard with 24%, CB with 3% and American Express with 1%. Finally, I found that nearly half the payment cards in France only have a debit function compared to around a quarter for credit functions.
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