# France & Fintech: are the smart card innovators still leading the way? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-01-29 Category: TECHNOLOGY Category URL: https://financedigest.com/category/technology Meta Title: French Innovations in Payments: The Rise of Biometric Meta Description: Discover how France's history of pioneering smart card technology is now leading the world in biometric contactless payments. Stay ahead at the Paris URL: https://financedigest.com/france-fintech-smart-card-innovators-still-leading-wayhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/france-fintech-are-the-smart-card-innovators-still-leading-the-way-1736839186224-compressed.jpg) _By **Lina Andolf-Orup**_ France has long been the pioneer of smart card technology: from the patenting of the first microchip, to the pivotal 1976 launch of ‘ _la carte à puce_’ – the smart card. Consequently, French banks were the first to launch the chip-based card in 1988 and, by 1993, [all bank cards issued in the country were chip-based](https://history.bnpparibas/dossier/smart-cards-a-french-invention-that-revolutionised-payments-22-across-the-world/) – four years ahead of the [UK’s first](https://history.bnpparibas/dossier/smart-cards-a-french-invention-that-revolutionised-payments-22-across-the-world/) smart card pilot programme. While a lot has changed since then, with the introduction of EMV® and the continued adoption of the technology around the globe, the nation has maintained its position at the forefront of payments. Ahead of this month’s [Paris Fintech Forum](https://www.parisfintechforum.com/), can we expect the nation to take the lead again with the latest payment card innovation, the biometric contactless card? _[**Card remains king**](https://www.financedigest.com/king-charles-releases-photo-for-first-christmas-card-as-monarch.html "King Charles releases photo for first Christmas card as monarch")_ ![Lina Andolf-Oru](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/lina-andolf-oru-450x527-1736839186214-compressed.jpg) Lina Andolf-Oru [“The French public’s preferred means of payment”](https://www.banque-france.fr/en/financial-stability/monitoring-cashless-payments/overview-cashless-payment-instruments-france), cards continue to hold a firm position in the hands, hearts and wallets of the French consumer. Despite the introduction of mobile payment platforms such as Apple Pay and Android Pay, [adoption rates](https://www.financedigest.com/the-medical-tourism-market-is-estimated-to-substantiate-i-e-grow-at-a-handsome-rate-in-upcoming-years-the-present-day-scenario-implies-the-adoption-of-smarter-ways-to-do-business-as-such-digital.html "The Medical Tourism Market to get filtered through organic digitized growth") have been slow for real world POS payments. Contactless cards, on the other hand, have [gained considerably greater traction](https://www.financedigest.com/carmine-color-market-will-gain-traction-at-7-9-amid-growing-preference-for-natural-food-ingredients-fmi.html "Carmine Color Market Will Gain Traction at 7.9% amid Growing Preference for Natural Food Ingredients: FMI"). France became one of the early adopters during roll out of contactless [payment cards](https://www.financedigest.com/fingerprints-supports-two-more-biometric-payment-card-launches-in-the-mena-region.html "FINGERPRINTS’ SUPPORTS TWO MORE BIOMETRIC PAYMENT CARD LAUNCHES IN THE MENA REGION") about a decade ago and are now one of the world’s biggest lovers of the tech. Bringing speed and convenience to its beloved smart card, last year alone saw over 42 million contactless cards distributed in the country according to [ABI Research](https://www.abiresearch.com/). _**Tap happier?**_ While contactless usage continues to rise, the [payment cap remains prohibitive to the end](https://www.financedigest.com/more-banks-join-european-instant-payments-pilot-from-end-2023.html "More banks join European instant payments pilot from end 2023") of PINs entirely. [Despite rising to 30€ in 2017](https://www.nfcworld.com/2017/02/06/349868/france-increase-contactless-limit-e30/), banks and retailers remain hesitant to scrap the cap. Not to mention consumer fears about ‘digital pick-pockets’ skimming on busy subways, or [spending sprees made on stolen cards](https://www.financedigest.com/card-spending-in-uk-falls-below-pre-covid-average-ons.html "Card spending in UK falls below pre-COVID average – ONS"). While the figures aren’t as substantial as, say, [online fraud](https://www.financedigest.com/three-online-fraud-trends-beauty-and-cosmetics-merchants-should-watch-out-for.html "Three Online Fraud Trends Beauty and Cosmetics Merchants Should Watch Out For"), the headlines are making consumers think twice about tap & pay. Adding strong customer authentication with [biometrics puts trust into contactless while also giving banks the confidence to finally say ‘au revoir’ to the payment](https://www.financedigest.com/how-biometric-payments-are-tackling-financial-exclusion.html "How Biometric Payments Are Tackling Financial Exclusion") cap. Plus, as the [biometric payment card is powered via the payment terminal just as contactless](https://www.financedigest.com/fingerprints-and-tag-systems-collaborate-to-offer-contactless-biometric-payment-cards-globally.html "Fingerprints™ and Tag Systems collaborate to offer contactless biometric payment cards globally") cards are, there’s no need for retailers to upgrade existing terminal infrastructure. _**Champions de l’innovation!**_ The French [payments ecosystem](https://www.financedigest.com/the-future-of-payments-biometrics-within-the-financial-ecosystem.html "The Future of Payments: Biometrics Within the Financial Ecosystem") truly champions innovation. Its domestic payment scheme, GroupementCartesBancaires, has been pivotal in managing the sustainable evolution of [payments technology](https://www.financedigest.com/why-anti-spoofing-fingerprint-technology-is-essential-for-the-continued-growth-of-digital-payments.html "Why anti-spoofing fingerprint technology is essential for the continued growth of digital payments") and the close collaboration of the industry for decades. We were delighted to attend the network’s Annual Forum last October and hear [insights from the nation’s financial services leaders into the key market challenges](https://www.financedigest.com/insights-on-the-flexible-packaging-global-market-to-2027-key-driving-factors-and-challenges.html "Insights on the Flexible Packaging Global Market to 2027 – Key Driving Factors and Challenges") and opportunities. One key note discussion asked: [In the age of GDPR, can privacy, security and the seamless UX be achieved?](https://www.weezevent.com/downloadFile?fae06a0a-9977-473b-b73d-5562074103d4) The answer? Yes! With strong customer authentication a priority, it was unsurprising to see the conversation turn to biometrics as a natural evolution of contactless cards and more broadly as a tool to unify the authentication experience across card, mobile and [online payments](https://www.financedigest.com/online-payment-gateway-market-to-witness-a-cagr-of-10-3.html "Online Payment Gateway Market to witness a CAGR of 10.3%"). As consumer biometric data is stored on-devices, consumers can feel confident their personal data is under their control and [service providers](https://www.financedigest.com/unprecedented-constructive-disruption-to-drive-the-sleep-service-providers-market.html "Unprecedented, constructive disruption to drive the Sleep Service Providers Market") can be confident their deployments are fit for the privacy age. _**Biometric smartcards – around the corner**_ With an innovative, forward-thinking payments community determined to grapple with the challenges of security, privacy and consumer UX, France is already making [moves towards](https://www.financedigest.com/the-orange-essential-oil-market-to-move-towards-constructive-advancements.html "The Orange Essential Oil Market To Move Towards Constructive Advancements") the future of biometric-secured cards. Leading French multinational bank Société Générale announced [its trial in October last year](https://www.biometricupdate.com/201810/french-trial-of-contactless-biometric-payment-cards-announced), the first – though certainly not the last – in the country. On from this, we can also expect France to continue to lead the [way in redefining](https://www.financedigest.com/redefining-renting-tipi-launches-the-best-way-to-live-in-london.html "REDEFINING RENTING: TIPI LAUNCHES ‘THE BEST WAY TO LIVE IN LONDON’") the future of secure customer authentication for fintech. Fingerprints will visit Paris [FinTech show next week and look forward hearing the latest insights and meeting](https://www.financedigest.com/fintech-incubation-more-value-than-meets-the-eye.html "FINTECH INCUBATION: MORE VALUE THAN MEETS THE EYE") everyone. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---