E-commerce in France: the rise of next-gen payment solutions
E-commerce continues to grow in France, driven by shifting consumer habits and the increasing adoption of digital payments. This transformation offers merchants a major opportunity to strengthen their online presence by offering payment options tailored to French consumer expectations.
According to the latest report published by Fevad (the French Federation of E-commerce and Distance Selling) in February 2024, e-commerce in France reached a total turnover of €159.9 billion in 2023, a 10.5% increase compared to the previous year. The number of online transactions hit 2.35 billion in 2023, up 4.9%. The average basket value also rose by 5.4%, reflecting a trend toward higher-value purchases (source : Fevad.fr).
Steady e-commerce growth
In 2024, online sales of apparel, shoes, and textiles saw a slight uptick in France. However, volumes remain 7.9% below 2019 levels, indicating that fashion retail continues to struggle. Forecasts for 2025 show projected growth ranging from -2% to +2%, underlining ongoing uncertainty in the sector (source : Le Monde.fr).
These figures highlight the need for retailers to adjust their strategies in line with evolving consumer behavior — especially the rise of online shopping and second-hand marketplaces.
Consumer habits and purchase drivers
To preserve or regain purchasing power amid inflation, French consumers have altered their buying habits. Essential sectors like food and leisure have fared better, while fashion and electronics have seen declines.
In 2024, platforms like Shein, Temu, and Vinted recorded strong sales growth: +13% for Shein, +10% for Vinted, and €1 billion in revenue for Temu in the first half of the year. These trends reflect a growing appetite for online and second-hand purchases, which are negatively impacting traditional retailers and large supermarkets (source : Le Monde.fr).
Most popular payment methods in France
Payment experience is key to converting online and in-store sales. In France, several methods are preferred:
- Credit & debit cards: In 2024, cards represent 60.7% of all transactions in France. Visa and Mastercard dominate the online space, accounting for roughly 80% of transactions.
- Contactless payments: Now used in over 6 out of 10 point-of-sale transactions, confirming their mass adoption.
- Mobile payments: Payments via smartphones and smartwatches are booming, representing 10.1% of in-store payments in 2023.
- Digital wallets: PayPal, Apple Pay, and Google Pay are gaining traction for their speed and flexibility.
- Instant transfers: On the rise, especially for peer-to-peer transactions. From January 2025, they’ll be free of charge per EU regulation.
- Paylib: This French mobile payment service had 10 million active users in 2022, exchanging €2.5 billion — mainly in small amounts (avg. €60). Starting June 2024, Paylib is gradually being replaced by Wero, a European initiative developed by the European Payments Initiative (EPI).
The role of payment orchestrators for merchants
With so many payment methods and ever-changing consumer preferences, payment orchestrators are becoming essential tools for merchants. They enable:
- Tailored payment options: Offer relevant payment methods based on customer profiles and sales channels (online or offline).
- Cost optimization: Route transactions through the most cost-effective PSP for each payment method.
- Higher conversion rates: Minimize cart abandonment by offering familiar and preferred payment options to French shoppers.
- Simplified payment management: Unify all payment methods under a single platform to streamline operations and reconciliation.
Conclusion
The French e-commerce market is expanding fast, fueled by increased online purchasing and evolving payment habits. To stay competitive, retailers must adopt flexible payment solutions aligned with local expectations.
A payment orchestration strategy allows merchants to optimize their payment mix, enhance user experience, and boost overall business performance.
Looking to deliver a seamless payment experience tailored to French customers? Our experts are here to help you identify the right payment methods and build a conversion-optimized payment journey.
