Digital wallets, also called electronic wallets or e-wallets, are gaining popularity in France and are being accepted by many businesses. Customers can now pay for their purchases using various digital wallet apps, such as Apple Wallet and Google Wallet. With this technology, a smartphone becomes a flexible payment device. Digital wallets also allow businesses to handle financial transactions easily. In this article, we’ll explore digital wallets in France, including how they work and the different types in use.

What’s in this article?

• What is a digital wallet?
  
• How do digital wallets work?
  
• How do digital wallets differ from virtual cards?
  
• What are the different types of digital wallet in France?
  
• Why accept digital wallet payments?
  

What is a digital wallet?

Just like a physical wallet, a digital wallet lets customers store various payment methods, such as credit cards and debit cards, as well as bank details and other important information. Businesses in France that offer e-wallets as a payment option provide customers with a secure way to process payments, whether in stores or online.

In an August 2024 report from PYMNTS Intelligence, 67% of people in France said they had used digital wallets in the last year—though not necessarily as a means of payment. The security provided by digital wallet smartphone apps also makes them appealing for safely storing travel and identity documents.

How do digital wallets work?

Digital wallets are secure and relatively simple to use. First, a user installs a digital payment app on their smartphone and signs up with that service (e.g., Google Wallet requires a Google Account). Then, they add one or more payment methods, such as a bank card, by following the app’s onscreen instructions. Lastly, when the user goes to make a purchase, they choose their preferred payment option from those they have saved in the digital wallet. Generally, if the user has added multiple payment methods to the e-wallet—for example, two credit cards and a debit card—one will default as the preferred payment method whenever the wallet is used. However, the user can choose a different option they’ve saved at any time.

For online purchases, a user simply selects the digital wallet payment option when completing their order.

The process is even easier for in-store purchases. Users can just hold their phones up to the business’s payment terminal. The payment information is then sent wirelessly using technologies like Bluetooth—otherwise known as a contactless payment.

Of course, security for a digital wallet is key. Payment data is always secured, and the card number is never directly shared with the business. Only the digital wallet service has access to the customer’s card information and keeps it fully secure.

How do digital wallets differ from virtual cards?

Virtual cards and digital wallets both safeguard a customer’s physical card number and details. A virtual credit card, however, is only valid for online transactions.

The e-Carte Bleue is an example of a virtual card that customers can use in France. Banks in France, such as BNP Paribas, also offer virtual business credit cards for business purchases. These cards can be added to digital wallets just like physical ones.

Digital wallets, on the other hand, work with any business that accepts them, whether online or in person.

What are the different types of digital wallet in France?

All international digital wallets, like Apple Wallet, Google Wallet, and Samsung Wallet, are available in France. A 2024 study from fintech company Lyf showed that the use of e-wallets is increasing in the country, with 38% of people using them to pay for their purchases.

The European Union (EU) is working to prevent the monopolization of digital wallets by tech giants. They began implementing the Digital Markets Act (DMA)—which works alongside the Digital Services Act (DSA)—in May 2023, and the act has been fully in effect since March 2024.

These initiatives are designed to encourage innovation while fostering fair competition among digital companies.

Digital wallets in France

Local e-wallet innovations, such as Wero, which replaced the earlier Paylib app in France in 2024, are emerging in France’s market. Sumeria, launched by the start-up Lydia, has recently been added to the list of European digital wallets, and Lyf, created by BNP Paribas and Carrefour, remains a popular choice in France.

Some payment technologies are tailored to specific sectors, such as those from Osmozis, a company that creates payment solutions for the tourism industry. A network of start-ups in France continues to drive innovation with digital payment applications.

Digital wallets for cryptocurrency

Digital wallets are also available for cryptocurrencies. Ledger, for instance, is a business in France that enables people to store and carry out their crypto transactions securely. Other international brands, such as CoolWallet and Zengo, are also highly recognized in France.

In addition to letting customers store, manage, send, and receive cryptocurrencies, some digital wallets can even convert cryptocurrency into fiat currency (i.e., government-issued money that isn’t tied to a tangible asset, such as gold). This makes transactions easier in stores that don’t directly accept cryptocurrencies, by effectively connecting digital and traditional money.

Why accept digital wallet payments?

As a business owner, accepting a variety of payment methods, including digital wallets, can help improve your conversion rate. Limiting payment options, on the other hand, can be a deterrent to potential customers. Offering diverse payment options is particularly important in a cosmopolitan and tourism-oriented country like France. The advantages of digital wallet payments include:

• Simplified payments: E-wallets simplify the purchase process by reducing the number of steps involved.
  
• Payment system compatibility: Digital wallets are compatible with most modern payment systems used in stores and online.
  
• Mobile flexibility: Digital wallets work with mobile devices, which is important in today’s mobile commerce-driven environment.
  
• Advanced security: Transactions made with e-wallets are protected with advanced encryption, making them highly secure and resistant to fraud.
  
• Lower fees: Businesses can save on transaction costs, since the fees associated with digital wallets are sometimes lower than those of traditional payment methods.
  

Stripe Payments enables you to easily and quickly integrate digital wallet payments into your business. This solution helps businesses remain relevant to customers in France, who are increasingly using digital payments.