France to Make Contactless Payments Mandatory on New Terminals by January 2016

In a push to accelerate the adoption of contactless payments, the French government announced in June 2015 that all newly deployed payment terminals must support contactless technology starting January 1, 2016. This initiative is part of a broader strategy to make NFC-based payments more mainstream in France.

Despite the widespread issuance of contactless-enabled cards and smartphones, actual usage in France remained low at the time. Between 2013 and 2014, the number of contactless cards in circulation grew by 60% to over 33 million, yet only 18% of cardholders used them. A Deloitte study also revealed that just 3% of consumers had made a mobile payment in-store, while 55% had never tried it.

One major obstacle was the lack of compatible payment infrastructure. By mid-2015, only around 20% to 21% of French retailers had terminals capable of processing contactless transactions.

The government’s objective was to have 100% of merchants equipped with contactless-capable terminals by 2020, following the example set by countries like the United Kingdom. Additionally, banks were expected to actively educate customers on how to use the new contactless features.