Thus, cash transactions are now set to fall at a compound annual growth rate (CAGR) of -2.3% up to 2023. France’s payments industry will be hit by ongoing disruption to its essential tourism industry, though ecommerce is seeing increases, says GlobalData.
France has been in lockdown since March 16, 2020. All restaurants, cafes, bars, shopping malls, museums and entertainment venues have been shut since the 14th of March, meaning that consumer spending has already dipped significantly. Key retailers such as Carrefour are open for online and payments and delivery, meaning that card payments and online checkout solutions have held up better than cash transactions.
The French tourism industry is particularly reliant on Chinese consumers, as 2.2 million visitors per year spend USD 4.4 bln (in 2019, according to the French Government). There have been no Chinese visitors since February 2020, which will mean a significant reduction in consumer spend.
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