Credit cards and financial payments in Israel
The switch from cash payment to card alternative has reached a global level, more consumers preferring the latter option for a wide variety of reasons. Although Israel might not have been one of the first countries to optimize this specific option, this financial trend has started to become the most preferred option here as well, and locals have the possibility of pursuing the payment arrangement of their choice by resorting to their bank for the opening of an account. The bank of Jerusalem has recently entered the credit card market as well, having signed an agreement with MasterCard and receiving the required services from a European country. Here are the details that are currently discussed in terms of credit card and cash payments in this country.
Market development – a boost in demand
It doesn’t take a lot of research to discover the increasing demand in terms of card payments. Today’s consumers are keener on paying with a debit or credit card, instead of carrying cash with them. This change is, of course, linked to the convenience that comes with this type of payment, first of all. However, locals have directed their attention towards card payments, and have started seeking the best credit cards available on the market since the Bank of Israel has also been adopting changes to minimize cash usage. Thus, market development and growth has been observed since 2017.
It was also the Bank of Israel that promoted and implemented certain tech advancements that would make card payments more appealing among consumers. The bank’s interest is mostly to fight against the black market as well as minimize fraud, and if the number of citizens using card payments increases, this goal will be an achievable one. Revolving around tech advancement, online retailing has also been optimized, and according to statistics, an increase in online orders has been observed since the year 2016, a factor that has positively contributed to keeping consumers’ cost of living in check.
The competitive nature of the local financial landscape
It’s said that in the future all banks in Israel will be expected to provide credit card opportunities, which will automatically mean an increase in competition, but more variety and opportunities for consumers as well. New regulations might be adopted soon, and the factor that has changed and continues to change the local financial market is the requested separation of the two major Israeli credit card companies from their banks. Since Leumi Card and Isracard will no longer be tied to their banks (change that might be finalized in a 3 year period, after the law comes into force), credit card ownership fees might also lower.
The financial landscape of Israel has underwent some significant change over the last few years, with more options emerging and being available for consumers. Israel has managed to keep up with global trends in terms of payments and credit cards, and one is able to see that through the numerous options the local banks are now offering.