Alongside Germany, the UK and Italy, France sports a significant portion of the European retail sector (14%) at USD 756.60 Billion in 2025. The market is projected to grow at a CAGR of 3.10% between 2025 and 2034 to reach USD 1,026.72 Billion by 2034.

So with that kind of growth, French resident retailers can relax right? Not quite.

Retailers face significiant challenges, and those who want to capitalise on those growth metrics need to be at the top of their game.

At a macro level, retailers are under enormous pressure. Inflation and soaring operating costs - including stubbornly high energy prices - rent, and hefty labour charges, are all straining margins - particularly for smaller shops. In some cases, contributions to social charges have more than doubled, seriously affecting profitability.

Digital Transformation & Legacy Technology

Much needed digital transformation is being driven by even greater competitive pressure. Agressive e-commerce competition, from the online giants, continues to disrupt traditional retail. Physical stores need strong omnichannel offerings to remain viable.

The sector still shows a lack of confidence in its digital maturity - nearly 90% of French retailers acknowledge the importance of digital channels, yet only 26% feel digitally mature - down from 27% in 2021. High digital investment costs remain a significant barrier.

On the payments side, many existing POS set-ups in France lack support for modern payment methods like NFC (contactless) or QR code scanning - requiring costly hardware replacements or middleware. In France, 42% of merchants with decade-old systems needed to replace their terminals - often at costs exceeding €1,200 per device.

Investments are substantial - not just for terminal hardware, but also software, maintenance, and compliance - with small to medium-sized businesses finding these expenses particularly burdensome.

Consumer & Merchant Dynamics

We also see shifts in consumer behaviour. Customers expect hybrid experiences combining online shopping, with physcial convenience. Services like click-and-collect, mobile purchases and seamless return options are increasingly standard - but unevenly implmented.

There are also changing retail formats and consumer dynamics. The traditional all-under-one-roof hypermarket model is losing relevance as consumers prfer proximity and specialisation. Multi-format strategies - like smaller convenience stores - are gaining traction.

For merchants, this points to a need for technology solutions that are increasingly specialised and 'oven-ready' for their businesses.

From a payments perspective, this means increasing demands on major retailers to diversify their technology to support the different use-cases (and plethora of payment methods, back office integrations, and at-till technologies...), while for smaller merchants (and the merchant acquirers who provide their payment systems) there is an ever growing pressure for solutions to be hyper-specialised - and therefore hyper-efficient - for their specific business type.

Newland NPT can help

With more than three decades of expertise, Newland NPT is recognised globally for its innovation in payment technology and market insight. We enable our customers to rapidly access and retain business in specific vertical markets much faster than our competitors, with rapidly developed new technology, driven by a combination of a lean, right-sized business - globally staffed with the best people - and the lack of an expensive, legacy technology estate to support.

In-store Retail: Extending Strengths, Avoiding Pitfalls

In-store retail continues to dominate France’s payment mix, accounting for 73% of all transactions in 2024. Yet consumer expectations have shifted permanently: shoppers now demand faster, more flexible, and more secure payment experiences. This is driving a wave of device and system upgrades across the retail sector.

In 2025, we launched multiple new Smart ECR solutions. These go far beyond payment acceptance; integrating loyalty programmes, inventory management, and data-driven insights into a unified platform. By enabling retailers to streamline operations and enhance customer engagement, Smart ECR solutions create value well beyond the checkout.

At the same time, the N950 SmartPOS Series stands as the flagship of our portfolio. With multiple form factors—including the N950, N950K, and N950S—the series delivers enterprise-grade performance and smooth POS integration. Designed to serve merchants both in-store and on the move, the N950 Series combines flexibility, security, and reliability, enabling businesses to accept payments anywhere while maintaining the highest operational standards.

Self-Service: Turning Challenges into Opportunities

France was one of the earliest markets to adopt self-service payments — a broad category that also includes unattended environments such as kiosks, vending, and transportation.Today, cash still plays a role in unattended environments, but its share is declining as consumers increasingly favour contactless and digital wallets. The launch of Wero, the EU-backed digital wallet, in France in September 2024 has further accelerated this shift, signalling Europe’s push for greater payment sovereignty.

For self-service merchants, this creates both challenges and opportunities. Meeting diverse payment preferences is no longer optional—it is a growth driver.

NewlandNPT's U-series was designed precisely for this evolution. Built for demanding self-service environments such as kiosks, vending, laundry, EV charging stations, parking, and transportation, the U-series ensures robust performance, top-tier security, and seamless consumer experiences.

Healthcare: A New Pivot Point for Digitalisation

France’s healthcare system, often hailed as one of the best in the world, is built on efficiency and universal accessibility. Payments are a crucial component of this system: the speed and security of transactions directly affect patient experience and operational performance. As digitalisation advances, healthcare is emerging as a key pivot point for innovation.

In collaboration with our local partners, Newland NPT delivers end-to-end digital payment solutions that address the specific needs of healthcare environments. From secure SmartPOS devices to integration with hospital information systems and tailored service models, our solutions enable healthcare providers to streamline payments, improve patient experience, and ensure compliance in a highly regulated environment.

Join Us at NRF Europe 2025

All of these innovations will be showcased at NRF Europe 2025 in Paris. Visitors will have the opportunity to explore:

• Our latest advancements in the Smart Series, demonstrating how innovation in design and functionality is redefining retail payments

• Real-world customer success stories from across verticals

• Insights into our newest terminal management solutions, enabling simplified deployment and lifecycle management

• Expert discussions on integration strategies, security requirements, and digital transformation planning

As non-cash payments continue their upward trajectory—with France’s mobile payments market projected to double in value between 2025 and 2030 (CAGR 15.1%)—Newland NPT remains committed to empowering merchants to succeed in the digital age.

We look forward to meeting our customers and partners at NRF Europe 2025. Together, let’s reshape the future of retail and unlock new opportunities in this fast-evolving payment landscape.