Payments Landscape in Israel: Opportunities and Risks to 2022
Israel is one of the most developed payment card markets in the Middle East and Africa. Israelis are prolific users of payment cards; the frequency of card usage for payments stood at 169 in 2018, which is the highest in the region. The country’s payment card market is unique in that it was developed as a deferred payment market, unlike debit and credit card markets elsewhere in the world. Charge cards accounted for 86.4% of the total payment card transaction value in 2018, and have been the main driver behind the growth of the payment card market.
The government has launched various initiates to promote the adoption of electronic payments in the country. The introduction of a cap on cash transactions and a reduction in interchange fees are some of the key regulatory measures the Bank of Israel (the country’s central bank) undertook to drive electronic payments. The robust growth in e-commerce, adoption of EMV technology, new entrants in the merchant acquiring space and the emergence of digital-only banks are other important trends that were witnessed during the review period.
The report Payments Landscape in Israel: Opportunities and Risks to 2022, provide detailed analysis of market trends in the Israeli cards and payments industry allowing banks and card issuers to identify segment dynamics and competitive advantages. It provides values and volumes for a number of key performance indicators in the industry, including cards, credit transfers, direct debits, and cheques during the review-period (2014-18e).
The report also analyzes various payment card markets operating in the industry and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2018e-22f). It also offers information on the country's competitive landscape, including market shares of issuers and schemes, detailed regulatory policies and recent changes in regulatory structure.
- The recent reduction in interchange fee provides a much needed push to adopt debit cards in the country. In January 2018 the central bank confirmed that the debit card interchange fee will be reduced in a phased manner to 0.25% by 2023.
- Similarly, for charge cards, the central bank plans to further reduce the interchange fee in phases to 0.5% by 2023 from the current 0.7%.
- In order to promote competition and reduce market concentration, the government has taken several initiatives. The Strum Law, passed in January 2017, which obligates the country’s two largest banks, Bank Leumi and Bank Hapoalim, to divest their credit card businesses - Leumi Card and Isracard respectively - by the end of January 2020.
- In June 2017, Bank Leumi launched its new digital bank, Pepper, in Israel. It is a mobile-only bank offering online accounts that can be opened in under eight seconds. Account holders are offered a Visa credit card, and they can access banking services such as loans, chequebooks and fund transfers.
- The onset of mobile-only banks is likely to accelerate the shift towards electronic payments in the country.
The report provides top-level market analysis, information and insights into the Israeli cards and payments industry, including -
Reasons to buy
- 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 debits, cards, and cheques. 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.
- 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.
- Market Overview
- Executive Summary
- Card-based Payments
- E-commerce Payments
- Alternative Payments
- Payment Innovations
- Payments Infrastructure & Regulation