Diversification of payment methods is an important issue for French ecommerce sellers looking to grow their businesses. Cash and cards were historically the most commonly used payment methods, but technological changes related to payments—digital wallets, mobile payment, instant transfers—have transformed the customer experience and offer businesses new opportunities.

This article presents the payment methods available to French businesses, including their pros and cons, and proposes payment methods you can offer to adapt to customer habits and help boost your sales.

What’s in this article?

• What’s a payment method?
  
• What’s the most commonly used payment method in France?
  
• What are the different types of payment methods?
  
• What’s the best payment method?
  
• What is the most secure payment method?
  
• How Stripe Payments can help
  

What’s a payment method?

A payment method is a financial instrument that enables individuals and businesses to pay their expenses by transferring money, either physically or electronically. Payment methods are defined in France by Article L311-3 of the French Monetary and Financial Code.

There are two categories of payment methods in France:

• Fiduciary payment, which corresponds to cash, i.e., coins and bills issued by public authorities. Fiduciary payment is immediate because it enables the direct transfer of money between the payer and the payee, without intervention of a third party and without any processing delay.
  
• Cashless payment, which corresponds to entries in commercial bank accounts. In the case of cashless payment, no coins or bills are exchanged. Instead, amounts are noted in bank accounts after a payment request is submitted by bank card, transfer, digital wallet, electronic currency, or check. This payment method requires intervention by a payment service provider (a bank or payment system operator), which transfers the payment between the payer’s account and the payee’s account through a series of accounting entries.
  

In 2020, 91% of the currency in circulation within the eurozone was cashless currency.

What is the most commonly used payment method in France?

In France, the most commonly used payment method is the bank card, followed by cash. In 2024, card payments made up 48% of point-of-sale transactions, while 43% were in cash. Online, card payments also dominate, with 84% of consumers using a card to pay for their purchases in 2023.

However, use of new payment methods, such as mobile payments and digital wallets, is increasing. In 2023, 37% of online buyers used an electronic payment method like Paypal or Paylib (now Wero) to make their purchases.

Notably, 7 out of 10 card transactions were contactless in 2023, for a total transaction volume of 10.8 billion.

What are the different types of payment methods?

There are seven main payment methods:

• Card
  
• Cash
  
• Digital wallet
  
• Mobile payment
  
• Bank transfer
  
• Check
  
• Cryptocurrency
  

Learn about each of these payment methods in more detail below.

Cards

Bank cards are the preferred payment method in France, favored by both consumers and businesses alike, as they offer a simple, fast, and secure way to pay, both in stores and online. There are three main players in the card market in France: Visa, Mastercard, and CB.

Customers can use different types of physical or virtual cards to pay for their purchases:

• Debit cards: Debit cards allow for funds to be debited immediately or within 48 hours maximum.
  
• Credit cards: Credit cards allow for payments to be made at a date that is later than the transaction date, with or without interest.
  
• Prepaid cards: Prepaid cards are cards that are preloaded with funds and their amount is capped.
  
• Corporate cards: Professional cards or corporate cards are used for business expenses only, and their transactions are paid by a business account.
  

When a payment is made by bank card at a point of sale, the buyer can pay for purchases by inserting a card in the seller’s card reader and entering a PIN, or by placing the card near the payment terminal to make a contactless payment. When paying online, the buyer can enter their card information (card number, expiration date, and three-digit CVV code) during the checkout process. The buyer then confirms payment using their banking app or a code received by text.

For businesses, accepting this payment method is key to being able to accommodate customer shopping habits. To take full advantage of the benefits of card payments, businesses must have a countertop, portable, or mobile payment terminal, and must indicate which types of bank cards they accept, whether at their store counter or on their ecommerce site.

Advantages of accepting payment by card

This payment method provides a number of benefits to businesses that accept it. Learn some of the advantages below.

• Accessibility: This payment method can be used for purchases as low as €1.
  
• Fast payments: This is thanks in particular to contactless payment, which ensures faster transactions and a frictionless customer experience.
  
• Increased revenue: Card payments make it possible to process larger numbers of transactions and to avoid errors that arise when dealing with cash.
  
• Stimulated sales: This payment method aligns with customer spending habits and makes it possible to accept international payments.
  
• Secure transactions: Card payments eliminate the risks associated with cash theft and counterfeit currency circulation, thanks to end-to-end transaction encryption.
  
• Optimized cash flow: Card payments make it possible to instantly debit the payer’s account, ensuring rapid access to funds.
  

Disadvantages to accepting card payments

Accepting card payments, however, does have some disadvantages that are important to consider before offering this payment method:

• Spending limits: Depending on the type of card or the amount of funds available, charges above a certain amount may be rejected.
  
• Transaction fees: Each bank and payment service provider charges a percentage on each transaction made by card. This can be a significant cost for businesses, especially for those with high sales volumes.
  
• Fraud risk: Bank card fraud remains a challenge for businesses and can impact revenue.
  

Is it possible to refuse payment by card?

Whether online or in-store, you can absolutely refuse to accept card payments, refuse to accept certain cards, or impose a minimum purchase amount for card transactions (in-store only). If you choose to do so, you must clearly indicate this refusal at the counter or on your payment page. Note, however, that card payment is the preferred payment method in France and throughout Europe; by refusing to accept cards, you risk losing a large portion of customers and affecting your business.

Cash

Historically, cash was the preferred payment method in France. However, in 2024, it was, for the first time, second in preference to payment by card. Even though the use of cash decreases a bit more each year, cash remains a preferred payment method with 60% of the French considering it important to be able to pay in cash, specifically for small transactions. For online purchases, cash payment is not common and is mainly used for payment on delivery.

To efficiently accept cash payments, businesses need a cash register and cash management software to make transactions secure as well as to track them. They also need a supply of coins and bills to be able to provide change to customers.

Advantages of paying with cash

Despite consumer preferences for cashless payments, paying with cash offers several significant benefits to businesses. Learn about these advantages below.

• Immediacy: Cash payments can be settled quickly and easily.
  
• Accessibility: Cash can be used for even the smallest amounts by all types of customers, even those who don’t have a bank account.
  
• Lack of transaction fees: This payment method allows for a direct, free transfer of money between a customer and a business.
  
• Optimized cash flow: Cash is collected immediately, allowing for improved cash flow.
  
• Practicality: Cash payments allow you to settle purchases no matter the economic situation, even in a major electrical outage, cyberattack, or health crisis.
  

Disadvantages of cash payments

Paying with cash can also have some disadvantages for businesses, as discussed below.

• Spending limits: A cash payment cannot exceed €1,000 when it’s used by the customer as the only payment method. This cap is increased to €15,000 for customers residing abroad if they’re making a personal purchase.
  
• Longer checkout times: Cash payments are not typically as fast as card or mobile payments because of the time it takes to handle cash, verify the amount, and give change. This can impact sales volume and create customer queues.
  
• Rigorous management requirements: Cash collection must be precise to avoid errors that can negatively affect accounting processes and cash flow.
  
• Fraud risk: Counterfeit bills, especially €20 and €50 denominations, are an ongoing problem for businesses and require constant monitoring using fake bill detectors (e.g., markers and scanners).
  

Is it possible to refuse payment by cash?

In principle, accepting cash payments is mandatory, and refusing to do so can lead to a €150 fine. However, it is legal to refuse cash payments in certain circumstances:

• Foreign currency: You can refuse to accept currency other than the euro.
  
• Damaged currency: Damaged, torn, or illegible bills are likely to be rejected by the bank upon deposit.
  
• Too many coins: You can reject any payments made with more than 50 coins.
  
• Counterfeit money: If the authenticity of a bill is in doubt, you can refuse payment and record the identity of the customer who tried to use it.
  
• Insufficient change: You can refuse payment in cash when the customer is not able to pay the exact amount and you don’t have enough change.
  

Digital wallets

Digital wallets have become a popular payment method in France in recent years, with 67% of the population having a digital wallet. This growth is due to the simplicity and practical nature of digital wallets; they enable payments without having to have a physical bank card. This payment method is gaining in popularity and it’s estimated that, by 2026, 60% of global consumers will have adopted it.

Digital wallets are applications that store personal data and payment information and enable users to pay for in-person or online purchases with a mobile device, such as a smartphone, tablet, or smartwatch. This payment method is contactless and does not require entering card information manually, speeding up transactions. In France, the most commonly used digital wallets are Paypal, Apple Pay, and Google Pay, although European solutions like Wero are becoming increasingly popular.

Businesses can accept digital wallet payments by integrating this payment method into their payment terminal or by displaying QR codes at points of sale. Online, businesses can add this option to their payments page.

Advantages of paying by digital wallet

Paying by digital wallet allows businesses to respond to new consumer purchasing habits and to offer an easy, fast, and secure payment solution. Learn about the advantages of this payment method below.

• Simplified payments: This payment method reduces the number of steps required to make a purchase since a physical card is not needed and no banking information needs to be entered.
  
• Better mobile conversion rate: This method reduces the risk of purchases being abandoned during the mobile checkout process, as customers don’t have to take out their payment card or manually enter their information.
  
• Easier accounting: Digital wallets are compatible with most existing payment systems, whether in-store or online.
  
• Comprehensive features: Some digital wallets offer advanced payment features, such as peer-to-peer payments, group payment management, and installment payments.
  
• Advanced security: Transactions made with digital wallets use complex encryption, which makes them resistant to fraud.
  
• Reduced fees: The cost of digital wallet transactions are sometimes lower than those made using a bank card.
  

Disadvantages of digital wallet payments

Payments made by digital wallet also have some disadvantages for businesses, as discussed below.

• Technology dependent: Digital wallets are unusable when batteries are dead, when a mobile device is lost or stolen, or when there are problems with the network.
  
• Significant transaction fees: Transaction fees can also be very high.
  
• Logistical constraints: Businesses must have a payment terminal or use a payment service provider to accept payment by digital wallet.
  

Mobile payment

Mobile payment is a modern, flexible payment method that, like the digital wallet, has seen significant growth in France in recent years. Today, 65% of people in France use mobile payments to make their purchases. Mobile payments are highly convenient, making it possible to use a smartphone or smartwatch to pay for a purchase or finalize a transaction via NFC technology or a QR code.

Mobile payment supports a variety of payment methods: digital wallets, banking apps, as well as peer-to-peer, closed loop, SMS, and email payments. Mobile payments can be used at all types of businesses: physical stores, ecommerce platforms, independent businesses and microenterprises, ATMs, subscription service providers, and many others. As with digital wallets, businesses must have a payment terminal equipped with NFC technology or display a QR code to accept mobile payments.

Advantages of mobile payments

Mobile payments offer multiple advantages for businesses:

• Speed and practicality: Customers don't need to enter their card information, which speeds up checkout and avoids queues.
  
• Improved customer experience: The faster payment process can help increase customer satisfaction and loyalty.
  
• Increased sales: The convenience and speed of this payment method can help increase sales and boost conversion rates.
  
• International reach: Businesses with an international customer base can use this payment method to simplify currency conversion and reach more markets.
  
• Lower transaction costs. In general, customers do not pay fees to use mobile payments.
  
• Stronger security: Mobile payment platforms comply with strict security standards and use protection mechanisms that reduce the risk of fraud and data theft.
  

Disadvantages of mobile payments

Mobile payments also have some disadvantages for businesses, as discussed below.

• Technology dependent: Mobile payments are unusable when batteries are dead, when a mobile device is lost or stolen, or when there are problems with the network.
  
• Adoption in progress: While this payment method is increasingly popular, it has not yet been adopted by the entire French population, who still prefer more traditional payment methods like bank cards.
  
• Security risks: Despite advanced security features, mobile payments are not without risk.
  

Bank transfers

Bank transfers are used to electronically move funds from one bank account to another. There are different types of bank transfers, the best known of which is the Single Euro Payments Area (SEPA) transfer, which allows for fast transfers within the eurozone, particularly since the introduction of instant payments.

This payment method has not yet gained general usage in France, and represented only 18% of cashless payments in 2023. However, transfers remain a very practical solution for business sales. They make it possible to issue an invoice with bank details and to send it to the buyer to be paid.

Advantages of bank transfers

Bank transfers are a secure, fast, and convenient payment method that offers many advantages to businesses:

• No cancellation or dispute possible: A bank transfer cannot be cancelled once it has been initiated, guaranteeing businesses a final payment.
  
• High security: Bank transfers benefit from a very high level of security and protection. This reassures customers and businesses and minimizes the risk of fraud.
  
• No transaction fees: This payment method incurs no fees (except in the case of non-SEPA transfers), making it easy to use by customers and businesses.
  
• High transfer limit: The cap for bank transfers is often quite high, limited only by the conditions of the bank account.
  

Disadvantages of bank transfers

While bank transfers are reliable, easy to use, and secure, they do have some disadvantages for businesses:

• Not practical for customers: The transfer process can be burdensome, requiring the customer to take certain steps; this can dissuade some customers.
  
• Risk of amount error: Customers are responsible for indicating the transfer amount, which introduces a risk of error that businesses must take into account.
  
• Risk of delay: While they are becoming faster, these payment methods can experience delays (depending on the type of transfer and processing times), which can impact cash flow.
  

Checks

Checks were historically a preferred payment method in France, representing 37.5% of all cashless transactions at the beginning of the 2000s. However, this written payment order, whereby the account holder instructs their bank to pay a beneficiary, has since declined dramatically as a result of technological and legislative developments, the rise of ecommerce, and changes in consumer payment habits.

As a result, in 2022, payment by check represented only 3.4% of all cashless payments. Nevertheless, France remains the EU country that uses this payment method the most—accounting for almost 88% of the total number of check transactions in the EU.

To be accepted, a payment by check must include certain pieces of information:

• Amount written out in both numbers and words
  
• Payee’s name clearly indicated
  
• Date and place of signature on the check
  
• Signature of the payer that corresponds to one on file with the bank
  

To verify the validity of payment by check, businesses can request identification.

Advantages of paying by check

While its use is declining, payment by check continues to provide certain advantages for businesses:

• No spending cap: There is no limit on the amount a check can be written for, which can facilitate transactions involving large sums.
  
• Fee-free: Payment by check incurs no cost to the seller or customer, making it an economical payment method.
  
• No equipment required: Businesses need no hardware to accept and cash checks.
  
• Payment tracking: Checks contain the payer’s banking information, which ensures that each transaction can be easily tracked.
  
• Payment by installment: For many years, checks were the only type of payment that allowed for payment in installments. They still make it possible to pay in installments today.
  

Disadvantages of payment by check

Checks also have a number of disadvantages that contribute to the decline of their use.

• Risk of fraud: The check remains, in France, the payment method that is the most likely to be used fraudulently, particularly in cases of theft or forgery, impacting both the payer and the seller.
  
• Risk of nonpayment: When a check is issued, this does not necessarily guarantee that the payer has sufficient funds, which can lead to significant unpaid sums for the business.
  
• Risk of payment rejection: Younger generations may not be familiar with the rules that govern checks, which can lead to errors (e.g., lack of signature or date) and result in payment being refused.
  
• Unsuitable for online payments: Payment by check is only possible at the point of sale or for remote sales, but is not accepted for online payments. This makes payment by check obsolete when compared to new payment methods.
  

Is it possible to refuse payment by check?

You can refuse to accept payment by check if this refusal is clearly indicated at your point of sale with a notice in the checkout area. You can also impose specific conditions of acceptance, such as a minimum or maximum amount or the presentation of identification.

Cryptocurrency

Although not yet common, cryptocurrency is becoming an increasingly common means of payment, adopted by younger generations and accepted by a growing number of businesses, both in-person and online. In France, businesses are free to accept payments in cryptocurrency, but this payment method does not benefit from legal status or specific regulation, which can pose risks for businesses that accept it.

What’s the best payment method?

The best payment method is the one that meets your business’s needs and goals. However, to match consumer payment habits, it’s key to offer payment by card and cash (for in-person transactions).

To decide which payment methods to offer, you should consider two main criteria:

• Your type of business: Physical point of sale or ecommerce. For example, at a physical point of sale, thanks to electronic payment terminals, you can offer payment by card, digital wallet, or mobile payment, and accept payment by cash or check. For online commerce, you can offer payment by card, digital wallet, mobile, and bank transfer.
  
• Your customer base: Depending on your industry, the customers you attract will vary in age and technical savvy. If your customer base is on the younger side, you should offer modern payment methods that enable instant payment. If your customer base is older, offer a combination of traditional payment methods (e.g., cards, cash, checks) and modern ones (e.g., mobile payment, digital wallets).
  

In general, the more varied the payment methods you’re able to offer, the more customers you can attract. You should also take the cost of payment methods into account, including the cost of purchasing equipment and any transaction fees applied to each payment method.

What is the most secure payment method?

Bank transfers are considered the most secure payment method, with the Banque de France reporting an average of 1 euro of fraud per 100,000 euros paid. This is lower than the fraud rate for credit card payments, which is estimated at €53 in fraud per €100,000 paid.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods, and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.