France
With 68.0 million inhabitants with high purchasing power, France is the 7th largest economy in the world, the second largest in the European Union, and one of the leading exporters and importers worldwide (9th as exporter and 6th as importer).The French economy is highly developed and is mainly based on the services sector (79.4% of GDP - 2022 estimate). The agricultural sector, aeronautics, automobile, and luxury goods industries are also noteworthy. After a 7.9% contraction of the gross domestic product in 2020 due to the effects of the Covid-19 pandemic, the country recorded a 6.8% recovery in 2021, driven by increased investment, consumption, and the easing of pandemic restrictions. In 2022, according to estimates by the EIU - Economist Intelligence Unit - the country recorded economic growth of 2.6%, and a significant slowdown is expected in 2023 (0.4%), in a context of inflationary pressures, restrictive monetary policies and rising interest rates, accentuated by the current war in Ukraine.France offers business opportunities in various sectors of activity, particularly in the construction, food, furniture and ICT sectors. It is important that the economic agents do not fail to mark their presence at the "anchor fairs" that take place in the country, and to evaluate the possibilities that e- commerce can offer. On the other hand, betting on quality and highly differentiated products is fundamental to face the strong competition, particularly from France.
Imports from France
Imports from France registered a value of USD 715 billion in 2021 (USD 583 billion in 2020). The top five imported product groups were Machinery and Appliances (21.0%), Vehicles and Other Transport Material (12.8%), Chemicals (12.1%), Mineral Fuels (10.0%) and Common Metals (7.4%).France's exports were worth USD 585 billion in 2021 (USD 489 billion in 2020). The top five exported product groups were Machinery and Appliances (18.5%), Chemicals (17.9%), Vehicles and Other Transport Material (14.7%), Food Products (7.5%) and Common Metals (7.3%).France recorded a deficit of USD 130 billion in 2021 which represents an increase of USD 40 billion compared to 2017 and USD 35 billion compared to 2020. The import to export coverage ratio stood at 81.9%, 2.0pp lower than in 2020.
Top banks
The French banking system is one of the most robust banking systems globally. The banking system in France has built up this stability due to two significant factors:The French banks have a steady loan performance. Over the years, the French banks have ensured they have had enough capital and liquidity.The banking system in France consists of more than 400 banks and includes four main units: the Bank of France, deposit banks, investment banks, and banks providing medium- and long-term loans. The largest banking groups in France (which are also among the top 10 financial groups in the world) are:
BNP PARIBAS
BNP Paribas stands out with its robust diversified and integrated model, which is the foundation of its performance. By having all its business lines work together and through its global footprint, the Group addresses its customers’ need on a broad basis and supports them in their development. The Group’s diversification in terms of customer segments, sectors and business lines is a source of stability. Revenue 46,9bn Euro. On the strength of these advantages and in accordance with its company purpose, the Group plays its role in full as a financier of the economy, as a responsible investor, and as an accelerator in the necessary transition towards a low-carbon economy.
Crédit Agricole Corporate
Crédit Agricole Corporate and Investment Bank is Crédit Agricole's corporate and investment banking entity. With a staff of 8,940 employees in 32 countries, Crédit Agricole CIB is active in a broad range of capital markets, investment banking and financing activities. Crédit Agricole Group (with 1,687 billion euros in assets);
Société Générale (SGM)
Société Générale (SGM) - is one of the main French banks and one of the oldest, created in 1864. Société Générale is the third largest French bank in terms of total assets after BNP Paribas and Crédit Agricole . It is also the sixth largest bank in Europe and the twenty-first in the world 7 . Societe Generale Group (with 1,214 billion euros in assets)
BPCE
Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. Groupe BPCE - 1,123 billion euros in assets.
Crédit Mutuel
We are building the financial future of our clients on the solid foundations of the Crédit Mutuel group. With more than 37.8 million customers and 8.9 million members, and more than 75 billion euros in equity, the group, with a long tradition, is among the best capitalized banks in Europe. Groupe Crédit Mutuel-CIC - 645 billion euros in assets. Source: Statista – Leading banks in France form 2016 to 2021, by market capitalization (in billion euros)
Top payment methods
From luxury boutiques to cosmetics giants, France is a cultural and commercial powerhouse. The French e-commerce market is worth €100 billion, corresponding to 2,29 number of cards per capita, with Cartes Bancaires (CB) the dominant payment method. Being a local system, CB is ubiquitous for in-store payments; most are also branded with Visa or Mastercard, and Adyen has a direct link to a French license.France is the most visited country on Planet Earth, with tourism equaling almost 10% of GDP. The allure of France's luxury brands and world-famous attractions adds considerably to these figures, so offering the local payment methods preferred by international visitors is vital to success in the regionSource: Statista – Market share of cash, credit cards, and other payment methods at point of sale (POS) in France in 2017, 2019, 2020, 2021, and 2022.
Cartes Bancaires
Cartes Bancaires is France's local card brand and the most widely used payment method in the region. Payments with Cartes Bancaires represent around 60% of current household consumption in France. There are 71.1 million cards issued by Cartes Bancaires and 12.4 billion transactions, totaling a value of 494 billion euros. More than 95% of French cards are Cartes Bancaires co-branded with Visa or Mastercard
Alma
Alma is a popular buy now, pay later service in France. With Alma, the shopper can pay for the goods in three or four installments. Before approving the payment, Alma performs risk checks on the shopper. If successful, Alma takes on the full fraud risk for the payment, and pays you up front.
Oney
Oney payments are gaining popularity in France, where shoppers can pay for their purchases in installments. To fulfill compliance checks, you need to have an entity in a European country. Oney performs risk checks on the shopper right at the moment of the purchase. How to pay with Oney:1. The shopper chooses Oney as their payment method during checkout.2. The shopper is redirected to Oney's webpage, fills in their details and validates their information. 3. The shopper will see a message confirming that the payment installment request has beenaccepted. They can then return to your website or app.
Titres-Restaurant
Titres-Restaurant meal vouchers are prepaid cards delivered by employers to their employees to buy food and beverages. These cards have daily spending limit of 25 EUR. When a shopper wants to buy something that costs more, they pay the remaining amount with different payment method.
Paypal
Paypal is one of the market leaders in online payment solutions with more than 400 million active customers worldwide, available in 200 countries and in more than 100 different currencies. As faras online shopping payment is concerned, it is the one of the mostused payment method in France.
American Express
Accepted in more than 130 countries and with over 100 million cards inuse, American Express (AMEX) is a relevant payment method worldwide. AMEX cardholders spend on average three to four times more than Visaand Mastercard cardholders, making it of particular interest to premium and more sophisticated businesses.
Visa
Visa is the world's largest global card network by transaction value, ubiquitous worldwide. Visa positions itself as "the best way to pay and get paid by everyone".
Mastercard
As one of the largest card brands in the world, Mastercard dominatesthe co-branded card market in Europe. It is also the leader incountries like Austria, Brazil, Canada, Colombia, Germany, Hungary, Venezuela, and in the Benelux among others.
Maestro
Maestro is a debit product within the Mastercard offering. Maestrocards can be used for payments in stores and to withdraw cash fromATMs. This payment method requires electronic online authorizationfor almost all transactions, although Mastercard's rules allowminimum limits to be set only for Maestro EMV chip transactions.
Concluding remarks
Credit and Debit cards
Credit and debit cards are widely accepted throughout France. The most common cards are Visa and Mastercard, but it is also possible to find stores that accept other types of cards such as American Express.
Cash
Despite the growing popularity of cards, cash is still widely used in France. Most stores and restaurants accept cash in euros.
Checks
Although less and less common, checks are still accepted in many French stores and establishments. However, the use of checks is decreasing and many stores now have policies restricting their use.
Mobile payments
As in many other places, mobile payments are becoming increasingly popular in France. Mobile payment apps, such as Apple Pay and Google Pay, are accepted in many places.
Bank transfers
Bank transfer is another payment option that is common in France. However, it is usually used for large value transactions, such as paying rent or buying a property.
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