The payment terminal market - France (2024)

1.2 The global market

the chart shows a steady evolution in the size of the global payment terminal market from **** to ****, rising from **.** billion USD in **** to a projected *** billion USD in ****, almost doubling the market size in less than ** years.

This robust growth reflects the rise of digital payments and the transition to cashless transactions, driven by technologies such as mobile wallets, contactless payments and online platforms.

Evolution of global payment terminal market size World, **** - ****, in billions of USD Source: ****

Factors driving this strong growth include :

increasing use of credit/debit cards and declining use of cash for transactions technological innovations (***) services associated with payment terminals, enabling businesses, for example, to better manage their revenues and inventories

Companies are investing massively in advanced point-of-sale systems to meet new consumer expectations. This transition is particularly visible in regions with high technology penetration, such asAsia-Pacific, which accounted for **.**% of market share in ****.

However, challenges remain, not least the cost of acquiring and maintaining terminals, which is holding back their adoption, especially by SMEs. Despite this, ongoing improvements in technology and the availability of more affordable solutions are tending to reduce these obstacles.

1.3 Domestic market

To estimate the size of the French payment terminal market, we can multiply the number of payment terminals in France (***).

Thus, for ****, we obtain the following calculation:

(***) = *.** billion euros

The same applies to other years:

Market size trend for payment terminals in France France, **** - ****, in billions of euros Source: ****

The market for payment terminals in France has grown by leaps and bounds in recent years, rising from *.** billion euros in **** to over *.* billion euros in ****. After a slight stagnation in ****, sales are back on the rise, posting a **% increase in just three years.

2.1 Increase in the number of payment terminals and bankcards

Number of electronic payment terminals in France France, **** - ****, in number of units Source: ****

The boom in electronic payment terminals (***) in France is spectacular: between **** and ****, their number more than doubled, from *.* million to over * million. This steady increase reflects the massive digitization of points of sale, a sign of the widespread adoption of contactless payments.

The turning point clearly came in ****, with a leap of ***,*** terminals in one year, propelled by the democratization of contactless payment. The momentum will gather momentum in ****/****, with increased use of contactless payments in a health context that has shaken up behavior.

Number of French bankcards France, ****-****, in millions Source: ****

This dynamic goes hand in hand with theexplosion of bankcards: in ****, France will have ** million cards in circulation, compared with just **.* million in ****. An increase of nearly **% in seven years, driven by the growing need for fluidity and simplicity in transactions.

Number of card payments made using electronic payment terminals France, **** - ****, in millions Source: ****

This doubling of the number of terminals has also fuelled a boom in card payments. In ****, more than **.* billion transactions were carried out via these terminals, a volume that has almost doubled since ****.

The curve is steadily steepening, illustrating ...

2.2 Payment methods used

Amounts of means of payment used by households in France France,****-****, in billions of euros Source: ****

The graph shows a marked transformation in the payment habits of French households between **** and ****. The main trend observed is the maintenance or even increase in the use of cash, which rises from *** billion euros in **** to *** billion euros in ****.

This interest in cash is underscored by other Banque de France statistics, in particular the one announcing that ATM withdrawals will total *** billion euros in France, up *% on ****.

Despite this apparent increase on the graph, the context shows that their relative share of transactions is declining in relation to electronic means. (***)

Despite the resilience of cash, it is contactless payment that is showing the strongest growth.

Amounts paid by contactless cards have climbed from ** billion euros in **** to *** billion in ****, illustrating a real shift in consumer preferences. This massive adoption can be explained in part by theincrease in the contactless payment ceiling from ** to ** euros in ****, but also by the health context, which has favored payments without physical interaction.

By ****, contactless will account for around **% of card transactions , compared with just **% in ****, marking a structural shift towards faster, more secure payments. Mobile payments are ...

2.3 Focus on credit card payment

The following graph shows the breakdown of bankcard use by sector, in terms of number of transactions. This breakdown includes all bankcard payments, whether physical (***). It does, however, enable us to identify trends in the sectors where bankcards, and thus payment terminals, are most widely used.

In terms of the number of transactions, supermarkets and restaurants are the main credit card payment acceptors. They are followed by fuel dispensers and bakeries, pastry shops and confectioners. Breakdown of CB payments by sector (***) France, ****, in millions of transactions Source : Observatoire CB The breakdown by value is slightly different from that by volume. While supermarkets, restaurants and fuel distributors are still among the main acceptors of CB payments, bakeries, pastry shops and confectioners are no longer among the main acceptors. The same applies to bars, cafés and restaurants. This is due to lower average baskets than in other sectors. Breakdown of CB payments by sector (***) France, ****, in billions of euros Source: ****

2.4 Focus on contactless payment

By ****, contactless payment has truly established itself as the preferred method for local transactions. It accounted for **% of bankcard payments, compared with just **% in ****, marking even faster adoption.

With over **.* billion transactions (***), the total amount of contactless payments reached *** billion euros, up **% on the previous year. Despite this surge, the average amount per transaction remained stable at around ** euros, underlining the fact that contactless is still mainly used for everyday purchases. [***]

Perceived benefits of contactless payment France, ****, in Source: ****

Contactless payment by CB has fallen slightly compared with March **** (***), but remains predominant: **% of French people have used it in the last six months. Contactless payment with a mobile application has risen by * % points compared with March ****.

Contactless payment continues to reinvent itself in France with the arrival of the " Contactless Plus " function, which now enables payment of purchases over €** while maintaining the card-insertion-free experience.

This change, made official by GIE Cartes Bancaires, marks a new stage for this technology, which had seen its ceiling successively increased from €** to €** in ****, then to €** in ****. From now on, for any amount above this threshold, all you need to do is enter the PIN code to validate the transaction, offering greater flexibility while guaranteeing transaction ...

2.5 Focus on mobile payment

Mobile payment is rapidly gaining in popularity in France, gradually establishing itself as a genuine alternative to traditional payment methods.

In ****, **% of French people said they would use this payment method in stores, an *-point increase on the previous year. The **-** age group in particular is massively adopting this technology, with **% using it regularly. Payment wallets (***) are also experiencing strong growth, reaching a usage rate of **%, * points higher than in ****. Young people aged **-** are playing a key role in this adoption, posting a usage rate of **% for in-store payments, and **% for payments between friends, well above other age groups.

This rise in adoption is not only generational, but also geographical: Parisians stand out, with **% adopting wallets, compared with **% in the rest of France. What's more, **% of users believe that mobile payment is just as secure as the traditional bank card, reinforcing its credibility.

Finally, mobile payment is no longer just a gadget: it is becoming widespread at a rapid pace, and is becoming a reflex for many French people, particularly the younger generations, who see it as a fluid, secure method of transaction in tune with their daily digital lives. [***]

Share of mobile payments among proximity card payments France, ...

2.6 Cash payment

In the Eurozone, against all the odds, cash payments are still very popular. Let's take a look at this astonishing phenomenon, which reflects a trend in most European countries, particularly France.

Which payment method is most widely accepted in the Eurozone? Euro zone, ****, in Source: ****

Despite a gradual decline,cash remains the dominant means of payment at French points of sale, accounting for **% of daily spending transactions in ****. This predominance reflects a certain resilience in the face of bankcards, which account for just **% of in-store payments.

In the euro zone, bankcards are even less widespread (***), while the average cash payment is **%. The French, meanwhile, stand out for their slow erosion of cash usage, with a *-point drop since ****, compared with a **-point decline observed in the rest of Europe.

However, this situation does not mean the imminent disappearance of hard cash, ascash use is strongly linked to socio-economic factors. Financially fragile households, as well as elderly people on modest incomes, prefer to pay in cash to better manage their daily expenses[***]

This preference is explained by better control of their budget, the possibility of better visualizing the money spent and, above all, by the confidentiality of transactions. According to the Banque ...

3.1 Overview of payment solutions

This section aims to give an overview of the payment environment in France, and the place of payment terminals in this environment.

Payment is a transaction that takes place between a buyer and a beneficiary. With the exception of cash payments, payment transactions call on one or more intermediaries to ensure that the transaction runs smoothly and securely.

The traditional intermediaries for these transactions are banks. However, a number of new entrants have revolutionized the payment industry. One example is Paypal and its electronic wallet. What's more, the technical solutions that enable transactions, such as payment terminals, are also intermediaries in the payment process.

In the payment industry, there are many different ways to carry out transactions, as shown in the following table (***):

Source: ****

Of the various payment methods presented in the table below, * require a payment terminal when making a purchase in a physical location: bankcards and mobile payments.

In addition, two types of purchase can be identified:

purchases in physical locations such as stores, shops, etc. It is for this type of purchase that Eftpos terminals are used. online purchases, such as on e-commerce sites. This type of purchase does not use Eftpos terminals as a transaction medium.

Payment ...

3.2 Card payment via a payment terminal

Several players are involved in the act of paying by card in a "physical place" (***):

The buyer of the good or service The merchant The issuer's bank (***) The acquirer's bank (***) External service providers, who supply the payment terminals and mediate the transaction

Thus, the merchant's bank transmits a payment authorization request to the customer's bank via a payment network (***), and the issuing bank then provides authorization and guarantees payment of the transaction. Each of these three players takes a commission on the transaction.

The diagram below details the card payment process via a payment terminal and shows the relationships between the various players. The payment terminal plays a central role , acting as an intermediary between buyer and merchant, as well as between merchant and bank.

Source: ****

3.3 The VSE market still dominated by incumbents, but disrupted by fintechs

The payment terminal market is currently dominated by traditional players. However, fintechs are becoming increasingly present, modernizing the offering (***)

The emergence and development of new payment methods is turning the payment terminal market upside down, and fostering the emergence of new players in the sector. These new payment methods include contactless payment, payment by phone (***) to integrate these new forms of payment.

Another driver of innovation, and indirectly of the emergence of new entrants to the POS market, is the growth of the micro, small and medium-sized business segment. These small, sometimes mobile, customers (***) want to be able to meet their customers' needs, as well as to have terminals available at affordable prices. For example, to meet these new requirements, fintechs are offering Eftpos terminals without subscription or rental, in exchange for a much higher commission on transactions. On average, this is *.**%, compared with less than *.*% for banking services. What's more, fintechs are offering services usually reserved for large corporations, which are now becoming accessible to more modest structures[***]

by partnering with fintechs: In ****, Crédit Agricole acquired Pledg, a French fintech specialized in fractional payments, to strengthen the offering of its subsidiary Sofinco[***] through mergers and acquisitions paypal, for example, ...

3.4 VSE distribution

Payment terminals cannot be distributed to private individuals. To obtain an EFTPOS terminal, you need to be a professional, a company or an association, and have a SIRET number. note that micro-entrepreneur status is sufficient to obtain this number. [***]

There are several distribution channels for electronic payment terminals:

Fintechs (***). From traditional banks (***) From retailers/wholesalers specialized in electronic payment systems, such as Location tpe and Monétique et Services

What's more, while fintechs tend to buy POS terminals, banks and specialist retailers tend to rent them out.

4.1 Offer typology

The TPE offer is divided into * models: purchase and rental. According to Crédit Agricole, an Eftpos terminal costs between *** and *** euros. Prices vary according to options (***), and whether the equipment is new or used. To rent an Eftpos terminal, you'll need between ** and ** euros per month, depending on the model and options. In addition to the purchase price, there's the cost of electronic payment maintenance. This amount is generally included when leasing an Eftpos terminal.

The following table lists the different offers available on the market (***) for purchase.

sources: on manufacturer or retailer websites

The table below details the subscription formulas and transaction fees for fintech POS terminals. These amounts are only available on quotation for EFTPOS products manufactured by the incumbent players, usually banks. The latter charge for this service through rental fees, but with transaction fees of around *.*%, lower than those offered by fintechs. [***]

sources: on manufacturers' websites

With the development of digitalization, payment terminals are becoming ever more efficient, adapting to technological developments in payment methods (***). These complementary services, previously reserved for large companies, are now available to all professionals.

4.2 mPOS terminals

MPOS terminals:

The mPOS terminal, initially developed and marketed by startups, consists of a mobile payment terminal that requires connection to a tablet or smartphone via Bluetooth. Over the last few years, this solution has become increasingly popular, particularly with micro, small and medium-sized businesses, as well as mobile retailers (***)

This solution consists of a smart card or magnetic stripe card reader (***), a mobile device such as a tablet or smartphone that hosts the payment application, and an acceptance server that handles the banking application used to carry out banking transactions. In this device, if not associated with an external printer, the customer receives the payment receipt by sms or email. [***]

Key players in this market include Ingenico, PAX Global Technology Limited, NCR Corporation, Oracle Corporation, VeriFone Inc, Square Inc, Zebra Technologies Corp, Fiserv Inc, Panasonic Holdings Corporation, PAR Tech, New POS Technology Ltd, Posiflex Technology Inc, Intuit Inc, Newland Auto-ID Tech. Co. Ltd. and AURES Group. The market is driven by the rise of digital payments and technological advances in the mPOS terminal sector. [***]

4.3 SoftPOS terminals

SoftPOS terminals:

The next evolution in the payment terminal market is "SoftPOS". SoftPOS is a solution that uses a smartphone or tablet as a payment terminal. It is a software solution, in the form of a mobile application, enabling contactless payments to be accepted from NFC cards or e-wallets on a smartphone or tablet, without the need for additional hardware (***)[***].

SoftPOS, also known as "Tap on Phone", presents a significant breakthrough in the payments sector by enabling smartphones and tablets equipped with NFC technology to function as payment terminals without the need for additional hardware. This technology offers merchants greater flexibility, enabling them to get up and running quickly and accept payments in a variety of environments. It is particularly cost-effective for small and medium-sized businesses, eliminating the need for dedicated hardware. What's more, SoftPOS guarantees transaction security using proven EMV® specifications, while meeting the growing demand for contactless payments, reinforced by the pandemic. Its practical applications range from bill payments at the table to queue reduction in stores and transactions on public transport, changing the landscape of electronic payments. [***].

Among the start-ups positioned on this new offering, we can cite :

french startup Dejamobile, with ReadyToTap Payment for Merchants, a software-only ...

4.4 Wero, a danger for payment terminals?

The launch of Wero, an interbank payment solution supported by fourteen European banking groups, marks a major turning point in the European financial transactions market. The service, designed to simplify money transfers between individuals without requiring IBAN entry, aims to compete directly with digital payment giants such as PayPal and Apple Pay.

Available from **** in France, Germany and Belgium, Wero aims to replace the Paylib service, positioning itself as a pan-European alternative for payments from individual to individual, but also from individual to professional (***) in time.

This initiative comes at a time when traditional payment methods, such as electronic payment terminals (***), with transactions finalized in less than ** seconds, free of charge and available to both private and business customers.

With more than ** million potential users in France alone (***), Wero could become a key player, capturing a significant market share in online payments and, by ****, in point-of-sale payments. [***]

But this simplicity and free service raises the question of the future of POS terminals, which are still predominantly used in physical stores. If Wero succeeds in integrating in-store payments via a simple QR code scan or the use of a telephone number, merchants could turn away from Eftpos terminals, which are often expensive ...

4.5 Biometrics, the future of payment terminals

The integration of biometrics in the payments sector is no longer a simple innovation, but a veritable revolution. Historically used for security reasons, biometric authentication is now positioned as a new standard in the payment experience, combining simplicity, speed and, above all, enhanced security.

The idea is to replace PIN codes and other traditional identifiers with unique physical characteristics such as fingerprints, facial recognition or even thevein print of the hand. In France, **% of users say they are ready to adopt this verification method to secure their payments[***]

The offer is developing rapidly, driven by major fintech players and terminal manufacturers. Biometric payment cards are one of the first products to hit the market. These cards, which incorporate a fingerprint sensor directly on the chip, enable transactions to be validated by a simple touch, with no limit on the amount, thus doing away with the **-euro maximum requirement for conventional contactless payments.

What's more, unlike traditional methods, biometric information never leaves the card: it is stored securely and encrypted on the terminal itself, reducing the risk of data interception by third parties[***]

The next step for industry players is to extend the use of these technologies beyond bankcards. Payment terminals capable ...

5. Regulations

The payment market is governed by an extensive and strict regulatory framework. Listed below are the main regulations concerning payment terminals:

The law authorizes professionals and associations to own an electronic payment terminal. To do so, professionals and associations must have a Siret number. Private individuals, on the other hand, are not allowed to own a payment terminal. [***] As of January *, ****, all payment terminals used by merchants must be equipped with contactless technology. [***] Regarding the refusal of payment methods, professionals, whether merchants, craftsmen or others, can refuse a payment by check or credit card. In such cases, this must be indicated by a sign. However, retailers are obliged to accept payment in cash. The retailer may, however, require that the number of coins be less than **, or that the coins and banknotes be in good condition. The legal maximum amount for a cash payment is *,*** euros. Above this amount, the professional must refuse cash. If a retailer refuses a cash payment, he risks a fine of *** euros.

In addition, for credit card payments, the merchant may require a minimum amount. For payments over *,*** euros, a signature on the receipt is mandatory. [***]

Article *.* of European Regulation ****/*** states that "Card schemes, issuers, acquirers, ...

5.2 Recent regulations

Regulation on instant payments (***): Adopted earlier this year, this regulation requires all payment service providers and electronic money institutions in the EU to offer instant transfers in euros, executed in less than ** seconds, **/*. Charges for these transactions must be equivalent to those for standard SEPA credit transfers, ensuring maximum accessibility for consumers. The text also requires verification of the correspondence between the beneficiary's name and the IBAN to prevent fraud. [***]

European Digital Identity Wallet (***) during online transactions. This development aims to reduce friction and boost the adoption of digital payments, taking inspiration from the Swedish BankID model. [***]

SPAA program (***) program introduces a commercial framework for Premium APIs, enabling financial institutions to offer differentiated services, such as dynamic recurring payments or automated payment guarantees. This opens up new opportunities for banking players to add high value-added functionalities and generate additional revenues, while meeting the European payments market's needs for transparency and security. [***]

6. Segmentation

• Ingenico
• Verifone
• PAX Technology
• Smile & Pay
• Apple
• Zettle
• Dejamobile
• Preludd Payment
• SumUp