Penetration of smartphones to elevate m-commerce Demand in France: Ken Research

Ken research announced its most recent publication on “Consumer Payments Country Snapshot: France 2016,” which offers comprehensive overview on the consumer payments market in the France, concentrated on payment cards, online payments, P2P payments, and new payment technologies such as mobile wallets and contactless and also the shrewd examination of the regulations implied in the industry that players must comply with, and how these have evolved lately. The distribution offers an in-depth analysis of the major payment card types in terms of both card holding and usage, explores the online payment market in the France by merchant type & payment tool and the regulations affecting the payments market and how they are likely to affect new incumbents and disruptors, furthermore it has investigated the consumer attitudes towards prepaid cards, P2P tools, mobile payment tools, and contactless cards, and how the industry in the France are deploying these tools to satisfy customer needs. The distribution serves a lot of purposes individuals who are seeking data about the key facts and figures in the consumer payments market in the France, regulatory requirements affecting the players, major competitors new product launches and customers various sentiments over various payment options.

Observations from the Macro economic imbalances

The on-going deterioration in the current account and the international investment position showcases a risk for the long-term sustainability of the French growth model. France has witnessed important losses in export market shares over the last few years (-14.0% between 2007 and 2012). Contrary to developments in other deficit countries, limited signs of a durable rebalancing can be seen in France so far.
The efforts to improve the non-cost competitiveness of French companies are hampered by their low profitability and increasing indebtedness.

The low profit margins of French companies, which continued to deteriorate in 2012 significantly due to a still increasing tax burden, led them to escalate their indebtedness in order to finance investment. Moreover credit constraints appear moderate at this stage, such a situation may lessen their ability to invest and to effectively engage in export activities.

The high general government deficit, jointly with a still rising public debt constitutes a major vulnerability, which calls for further adjustment.

France’s government deficit expanded sharply in 2009 as a result of the economic crisis. Since then, fiscal consolidation has been undertaken in order to bring the deficit below 3% of GDP by 2013, a deadline which has been extended to 2015. While risks to the medium-term sustainability appear moderate, the expansion in public debt following the financial crisis means that the economy has become more sensitive to potential adverse economic events.

Latest Trends

France has the lowest card penetration in Western Europe, with less than one payment card per person in circulation and for this The French government has acquainted legislation obliging organizations to install payment terminals equipped of accepting contactless cards and NFC-based mobile wallets when purchasing new POS terminals.

E-commerce continues to account for the wide majority of online purchases in France. However, m-commerce is gaining ground, with its share of online purchases rapidly developing from 1% in 2010 to 12% in 2014. Payment providers should look to invest in mobile to ensure their long-term relevance.

Topics Covered in the Report