French Banks launch their e-Wallet 'Paylib' | Fierce competition for PayPal

FRANCE | Three French retail banks announced last Tuesday an interesting new payment service for the web, called Paylib. As s competitor of Paypal, this joint initiative of BNP Paribas, Societe Generale and Banque Postale aims to meet the growing needs of internet merchants in online and mobile shopping.


Similar to PayPal Checkout Experience

With a Paylib account, users will be able to pay on the web using a simple login and password instead of having to enter all their credit card information. The user experience should be similar to paying with your PayPal account, and it will make even more sense on mobile. Multiple ecommerce websites are already on board. Paylib has worked with,, PriceMinister and Leroy Merlin for the service’s launch. As those websites are very popular ecommerce platforms, the partnerships will be a major asset of the initial growth strategy.


Second Mobile Verification Code

When you first use Paylib, you have to select the credit card to link with your Paylib account. In addition to the login and password, users will have to enter a second code from the companion app on their smartphones. It’s very reminiscent of Google’s two-step verification process.


Paylib: fierce competition for PayPal France

BNP Paribas, Société Générale and La Banque Postale are the three initial banks, but it’s an open standard. They hope that more French banks will join them. In total, 23 million users can already pay using Paylib, compared to 7 million PayPal users in France. While anybody can start processing payments through Paylib, the solution will remain restricted to the French market as only French banks are part of the initiative.


Merchant Incentive: lower transaction fees

One of the incentives for merchants is that the processing fee is lower than PayPal’s processing fee (usually around 3 percent in France). Working together is the only way that French banks could come up with a compelling alternative to PayPal and soon-to-be-launched Stripe. Yet, French authorities are following Paylib very closely. The service could create antitrust issues. If Paylib can partner with more banks, it could become a competitive payment processor in France, giving a lot of power to the major French banks.


Article sourced from, September 17th, 2013.



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