Market Research Logo

The Cards and Payments Industry in Israel - Emerging Trends and Opportunities to 2020

The Cards and Payments Industry in Israel - Emerging Trends and Opportunities to 2020

Summary

Israel is one of the most developed payment card markets in the Middle East. Consumers in Israel are prolific users of payment cards, and Israel registered the highest frequency of use in comparison to its peers in 2016, with 155.4 transactions per card, as compared to Saudi Arabia with 99.0, Iran with 62.0, Kuwait with 54.9, the UAE with 49.8, Lebanon with 31.3, Oman with 22.4 and Bahrain with 18.1.

Despite growth in non-cash payments in the last decade, Israeli consumers are still strongly inclined towards cash. The Bank of Israel has made several regulatory interventions to boost electronic payments and reduce dependence on cash, such as introducing a cap on cash transactions. Israeli regulators are looking to open up competition by allowing new types of banking, such as mobile-only banks.

Israel’s payment cards market is dominated by pay later cards, with limited adoption of debit cards. All credit cards are a combination of deferred debit cards and credit cards, functioning more like charge cards. Generally, credit card holders are billed for purchases at the end of a month; however, in Israel the total outstanding amount in a given month is automatically debited from the customer’s current account.

Debit card penetration in Israel was 10.3 cards per 100 individuals in 2016, lower than peers Iran (337.3), the UAE (109.3), Bahrain (97.4), Kuwait (93.1), Oman (85.8), Saudi Arabia (75.8) and Lebanon (33.4). The central government took several initiatives during the review period (2012-2016) to curtail cash transactions and encourage debit card use, including requiring banks to issue debit cards free of charge to new and existing accounts, reducing interchange fees on debit card transactions, and abolishing bank fees for debit card transactions. The initiatives are expected to increase debit card penetration and use.

A key aspect of Israel’s payment cards market is the entrenched positions held by the three main credit card issuers, which are also owned by the country’s main banking groups. The dominance of Isracard, Leumi Card and ICC Cal has long gone unchallenged for several reasons, including the barriers to entry for foreign issuers, which lack the wide branch networks and distribution points of domestic issuers.

The report “The Cards and Payments Industry in Israel - Emerging Trends and Opportunities to 2020” report provides top-level market analysis, information and insights into the Israeli cards and payments industry.

In particular, this report provides the following -

  • Current and forecast values for each market in the Israeli cards and payments industry, including debit, credit and charge cards.
  • Detailed insights into payment instruments including credit transfers, direct debit, checks and payment cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis.
  • Analysis of various market drivers and regulations governing the Israeli cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
  • Comprehensive analysis of consumer attitudes and buying preferences for cards.
  • The competitive landscape in Israel's cards and payments industry.
Companies mentioned in this report: Bank Leumi, Bank Hapoalim, Isracard, ICC Cal, Visa, Mastercard, American, Express, Diners Club.

Scope
  • This report provides a comprehensive analysis of the Israeli cards and payments industry.
  • It provides current values for the Israeli cards and payments industry for 2016, and forecast figures to 2020.
  • It details the different demographic, economic, infrastructural and business drivers affecting the Israeli cards and payments industry.
  • It outlines the current regulatory framework in the industry.
  • It details marketing strategies used by various banks and other institutions.
Reasons to buy
  • Make strategic business decisions, using top-level historic and forecast market data, related to the Israeli cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Israeli cards and payments industry.
  • Assess the competitive dynamics in the Israeli cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Israel.
  • Gain insights into key regulations governing the Israeli cards and payments industry.


  • Executive Summary
    • Market overview
  • Key facts
    • Table Israel, Key Facts, 2016
    • Table Israel, Regional Benchmarking of Payment Cards, 2016
  • Top five industry events
  • Payment Instruments
    • Current payment environment
      • Table Figure 1: Israel, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016
      • Table Figure 2: Israel, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016
  • E-Commerce and Alternative Payments
    • E-Commerce market analysis
      • Table Figure 3: Israel, E-Commerce Value 2012-2020
    • Alternative payment solutions
      • PayPal
      • MasterPass
      • Cal4U Wallet
      • Colu
      • Pelephone Digital Wallet
  • Regulations in the Cards and Payments Industry
    • Regulatory framework
      • Regulation pertaining to cards
    • Anti-money laundering
    • Foreign direct investment regulations
      • Table Israel, Mode of Entry of Foreign Banks
  • Analysis of Cards and Payments Industry Drivers
    • Table Figure 4: Israel, Population and Economic Indicators
    • Table Figure 5: Israel, ATMs, POS Terminals and Household Consumption
  • Payment Cards
    • Table Figure 6: Israel, Payment Cards Transaction Value and Cards in Circulation, 2012-2020
  • Debit Cards
    • Debit cards market analysis
      • Table Figure 7: Israel, Debit Card Penetration and Turnover Per Card
    • Competition in the debit cards market
      • Table Figure 8: Israel, Debit Cards Scheme and Issuer Transaction Value Share, 2016
    • Debit cards comparison
      • Table Israel, Debit Cards Comparison and Key Features, 2017
  • Pay Later Cards
    • Pay later cards market analysis
      • Table Figure 9: Israel, Pay Later Card Penetration and Turnover Per Card
    • Competition in the pay later cards market
      • Table Figure 10: Israel, Pay Later Cards Scheme and Issuer Transaction Value Share, 2016
    • Pay later cards comparison
      • Table Israel, Gold Credit Cards Comparison and Key Features, 2017
      • Table Israel, Premium Credit Cards Comparison and Key Features, 2017
      • Table Israel, Charge Cards Comparison and Key Features, 2017
  • Prepaid Cards
    • Table Figure 11: Israel, Prepaid Cards in Circulation and Transaction Value, 2012-2020
  • Appendix
    • Abbreviations and acronyms
    • Supplementary data
      • Table Israel, Payment Instrument Transaction Values (ILS Billion), 2012-2016
      • Table Israel, Payment Instrument Transaction Values (US$ Billion), 2012-2016
      • Table Israel, Payment Instrument Transaction Volumes (Million), 2012-2016
      • Table Israel, Payment Cards in Circulation by Type (Million), 2012-2020
      • Table Israel, Volume of Payment Card Transactions (Million), 2012-2020
      • Table Israel, Value of Payment Card Transactions (ILS Billion), 2012-2020
      • Table Israel, Value of Payment Card Transactions (US$ Billion), 2012-2020
      • Table Israel, Debit Cards in Circulation (Thousand), 2012-2020
      • Table Israel, Debit Card Transaction Volumes, 2012-2020
      • Table Israel, Debit Card Transaction Values (ILS), 2012-2020
      • Table Israel, Debit Card Transaction Values (US$), 2012-2020
      • Table Israel, Debit Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Israel, Debit Card Transaction Values by Scheme (ILS Billion), 2012-2016
      • Table Israel, Debit Card Transaction Values by Scheme (US$ Billion), 2012-2016
      • Table Israel, Debit Card Transaction Values by Issuer (ILS Billion), 2012-2016
      • Table Israel, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016
      • Table Israel, Pay Later Cards in Circulation (Million), 2012-2020
      • Table Israel, Pay Later Card Transaction Volumes, 2012-2020
      • Table Israel, Pay Later Card Transaction Values (ILS), 2012-2020
      • Table Israel, Pay Later Card Transaction Values (US$), 2012-2020
      • Table Israel, Pay Later Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Israel, Pay Later Card Transaction Values by Scheme (ILS Billion), 2012-2016
      • Table Israel, Pay Later Card Transaction Values by Scheme (US$ Billion), 2012-2016
      • Table Israel, Pay Later Card Transaction Values by Issuer (ILS Billion), 2012-2016
      • Table Israel, Pay Later Card Transaction Values by Issuer (US$ Billion), 2012-2016
      • Table Israel, Credit Cards in Circulation (Million), 2012-2020
      • Table Israel, Credit Card Transaction Volumes, 2012-2020
      • Table Israel, Credit Card Transaction Values (ILS), 2012-2020
      • Table Israel, Credit Card Transaction Values (US$), 2012-2020
      • Table Israel, Credit Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Israel, Credit Card Transaction Values by Scheme (ILS Million), 2012-2016
      • Table Israel, Credit Card Transaction Values by Scheme (US$ Million), 2012-2016
      • Table Israel, Charge Cards in Circulation (Million), 2012-2020
      • Table Israel, Charge Card Transaction Volumes, 2012-2020
      • Table Israel, Charge Card Transaction Values (ILS), 2012-2020
      • Table Israel, Charge Card Transaction Values (US$), 2012-2020
      • Table Israel, Charge Cards in Circulation by Scheme (Thousand), 2012-2016
      • Table Israel, Charge Card Transaction Values by Scheme (ILS Billion), 2012-2016
      • Table Israel, Charge Card Transaction Values by Scheme (US$ Billion), 2012-2016
      • Table Israel, Prepaid Cards in Circulation (Thousand), 2012-2020
      • Table Israel, Prepaid Card Transaction Values (ILS Billion), 2012-2020
      • Table Israel, Prepaid Card Transaction Values (US$ Million), 2012-2020
    • Definitions
      • Table Definitions of Commonly Used Terms
    • Common payment card features
      • Table Common Features of Payment Cards
    • Methodology
    • Bibliography
    • Further reading

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report