The market, currently worth USD 31.48 billion, is expected to enjoy a CAGR of 6.6% over the next four years, attaining the value of USD 40.72 billion in 2026.
The report cites several factors which the authors expect to contribute to the growth of the French prepaid card market: the normalisation of digital payments, the many fintechs offering relevant solutions in France and the government.
The report notes the increasing popularity of, and innovation in the concept of, gift cards in France. It cites examples such as the collaboration between gift card provider Gifted and payment services provider Nets, which allows consumers to instantly receive single-use gift cards, which can be easily onboarded onto merchants’ platforms.
The government, too, is encouraging the growth of mobile ticketing solutions. The report notes that the Paris transit authority, IDFM, created a digital version of its Navigo transit card in October 2021.
Separate figures from Statista show that the total value of transactions in the French digital payments segment is expected to reach USD 173.7 billion in 2022. The figure is forecast to enjoy a CAGR of 15.39%, and to reach USD 335.3 billion in 2027.
Digital commerce is the largest segment of the digital payments market, with the total value of transactions in the sphere expected to reach USD 125 billion in 2022.
A study from March 2022, commissioned by the European Central Bank (ECB) and carried out by Kantor, found that ‘debit cards were the most common payment method for the general public in France, and [that] cash was popular.’ The study found that the young used mobile payments more than the older, that the public in general was concerned about the safety of the payment mode, and that mobile payments were generally used for smaller payments.
Separate research by GlobalData echoes the Kantor study, finding that the country retains a strong preference for card payments, and that the uptake of mobile wallet adoption is still weak in France. However, it adds that the use of mobile wallets is expected to increase, and observes that ‘over 25 French banks and payment service providers now offer Apple Pay to their customers.’
GlobalData also notes that France’s ecommerce market, the fifth-largest in the world (going by transaction value), is enjoying steady growth due to consumers’ increasing comfort with online payments.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now