In daily business our research department supports us and our clients by identifying trends early, as well as new business opportunities around the globe. This month we look at France, a payment market with a special competition environment for payment providers.
France is the third biggest e-commerce market which shows a significantly strong growth in 2012. Regarding the latest report of Fevad, the French national e-commerce federation, three million more online consumers have shopped in the first three month of 2012 compared to 2011. Overall the French market contains over 31 million online shoppers who consume goods in the value of 11 billion EUR, an increase of 24% to the first quarter of 2011.
Beside the strong figures, France is facing specific country challenges which Cyprien, our French partner, summarizes as follows: “The French market is one of the most competitive markets as it relates to payment costs rather than processing and acquiring fees. It has been designed from the start with the association of the banks when they created the Carte Bancaire. Perceptive to the banks, French banks don´t make money on acquiring, however it is one service among others. So it is difficult for Non-French companies to play in France.”
Cyprien adds: “The good news is that PAY.ONprovides a solution for this challenge with its routing gateway PayPipe. In one direction it helps French merchants or rather their payment service providers to integrate the accordingly domestic payment methods for their cross border customers easily. European wide selling merchants are being enabled via their PayPipe using payment service providers to profit from the low French rates. And because of its methods bandwidth and cost saving potential PayPipe perfectly supports also French and European banks.”
France discovers its love for online shopping. According Fevad, the e-commerce growth is faster in comparison to that of new internet users. And French consumers like to buy online, in average 5 purchases per quarter per shopper. Around 4.3 million people are doing their online purchases directly via smartphone and tablet. Due to the large demand the number of new e-commerce shops is swelling greatly. 18,000 new shops of now over 104,000 went online in the first quarter of 2012, more than 20% to 2011 – a strong highway to sell. Payment providers and merchants only have to tap this source.