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