Consumers can now make their purchases more quickly thanks to new payment methods. Changing user behavior is forcing some players, including traditional banks, to develop new areas of expertise in order to remain competitive.
95% of French people are ready to pay for their purchases using a new payment method
The arrival of new players on the banking market has enabled consumers to take advantage of innovative products and services that meet their needs, including payment solutions. According to a study by the CSA institute published on January 29, 2020, 5 new payment methods are known by at least 3 out of 4 French people, and 95% of those surveyed say they are ready to use one of these payment solutions to pay for their purchases. These include contactless payment cards (96%), e-commerce payment (92%), contactless payment with a cell phone (90%), online kitty chips (83%) and crypto-currencies (74%). Less well known, however, are payment via QR code, money transfer between individuals and payment via social networks.
The survey also revealed that almost one in five French people are prepared to pay for their purchases with crypto-currencies. 80% of French people who already use crypto-currencies consider them to be a secure solution. It would seem, then, that virtual currencies are being seen less and less as a speculative tool or a fad, and more as a means of payment. However, users still need to be informed and reassured before they can fully trust these new products.
Banks face up to the boom in new payment methods
Today, it's customers who dictate new uses, not retail banks. Faced with the arrival of new players, namely neobanks, and changing user expectations, traditional banks need to develop new areas of expertise.
While some fintechs, such as Linxo, want to impose their own means of payment, banks are also trying to innovate. Several players, for example, are testing a contactless bank card with fingerprint authentication. After Société Générale, Crédit Agricole was the second bank in France to embark on this project. Future holders of these bankcards will be able to make contactless payments, with no limit on the amount, by placing their finger on the card's sensor.
Alongside these innovations, cash is tending to disappear. In fact, one out of every two payments is now made by credit card. Cheques are used less and less, but still account for 10% of payments. This trend is also linked to the development of mobile payment solutions, which are gradually gaining ground.