The fact that all restaurants, bars, shopping malls, etc across the country shut since March means that consumer spending has already dropped significantly
According to GlobalData, cash transactions in France are expected to change from steady growth to yearly declines by 2023. Besides, they are currently set to drop at a compound annual growth rate (CAGR) of -2.3% up to 2023.
Despite French e-commerce is seeing increases, its payments industry will be hit by ongoing disruption to its essential tourism industry, the report found.
The report highlighted that the French tourism industry is particularly reliant on Chinese consumers. For instance, 2.2 million visitors per year spend $4.4 billion as of 2019. And due to the pandemic, there have been no Chinese visitors since February, meaning a drastic reduction in consumer spending.