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

  • ID: 4239931
  • Report
  • Region: Israel
  • 49 pages
  • GlobalData
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FEATURED COMPANIES

  • American Express
  • Bank Hapoalim
  • Bank Leumi
  • Diners Club
  • ICC Cal
  • Isracard
  • MORE
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.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • American Express
  • Bank Hapoalim
  • Bank Leumi
  • Diners Club
  • ICC Cal
  • Isracard
  • MORE
1. EXECUTIVE SUMMARY
1.1. Market overview
1.2. Key facts
1.3. Top five industry events
2. PAYMENT INSTRUMENTS
2.1. Current payment environment
3. E-COMMERCE AND ALTERNATIVE PAYMENTS
3.1. E-Commerce market analysis
3.2. Alternative payment solutions
3.2.1. PayPal
3.2.2. MasterPass
3.2.3. Cal4U Wallet
3.2.4. Colu
3.2.5. Pelephone Digital Wallet
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY
4.1. Regulatory framework
4.1.1. Regulation pertaining to cards
4.2. Anti-money laundering
4.3. Foreign direct investment regulations
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS
6. PAYMENT CARDS
7. DEBIT CARDS
7.1. Debit cards market analysis
7.2. Competition in the debit cards market
7.3. Debit cards comparison
8. PAY LATER CARDS
8.1. Pay later cards market analysis
8.2. Competition in the pay later cards market
8.3. Pay later cards comparison
9. PREPAID CARDS
10. APPENDIX
10.1. Abbreviations and acronyms
10.2. Supplementary data
10.3. Definitions
10.4. Common payment card features
10.5. Methodology
10.6. Bibliography
10.7. Further reading

List of Tables
Table 1: Israel, Key Facts,
Table 2: Israel, Regional Benchmarking of Payment Cards,
Table 3: Israel, Mode of Entry of Foreign Banks
Table 4: Israel, Debit Cards Comparison and Key Features, 2017
Table 5: Israel, Gold Credit Cards Comparison and Key Features, 2017
Table 6: Israel, Premium Credit Cards Comparison and Key Features, 2017
Table 7: Israel, Charge Cards Comparison and Key Features, 2017
Table 8: Israel, Payment Instrument Transaction Values (ILS Billion), 2012-2016
Table 9: Israel, Payment Instrument Transaction Values (US$ Billion), 2012-2016
Table 10: Israel, Payment Instrument Transaction Volumes (Million), 2012-2016
Table 11: Israel, Payment Cards in Circulation by Type (Million), 2012-2020
Table 12: Israel, Volume of Payment Card Transactions (Million), 2012-2020
Table 13: Israel, Value of Payment Card Transactions (ILS Billion), 2012-2020
Table 14: Israel, Value of Payment Card Transactions (US$ Billion), 2012-2020
Table 15: Israel, Debit Cards in Circulation (Thousand), 2012-2020
Table 16: Israel, Debit Card Transaction Volumes, 2012-2020
Table 17: Israel, Debit Card Transaction Values (ILS), 2012-2020
Table 18: Israel, Debit Card Transaction Values (US$), 2012-2020
Table 19: Israel, Debit Cards in Circulation by Scheme (Thousand), 2012-2016
Table 20: Israel, Debit Card Transaction Values by Scheme (ILS Billion), 2012-2016
Table 21: Israel, Debit Card Transaction Values by Scheme (US$ Billion), 2012-2016
Table 22: Israel, Debit Card Transaction Values by Issuer (ILS Billion), 2012-2016
Table 23: Israel, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016
Table 24: Israel, Pay Later Cards in Circulation (Million), 2012-2020
Table 25: Israel, Pay Later Card Transaction Volumes, 2012-2020
Table 26: Israel, Pay Later Card Transaction Values (ILS), 2012-2020
Table 27: Israel, Pay Later Card Transaction Values (US$), 2012-2020
Table 28: Israel, Pay Later Cards in Circulation by Scheme (Thousand), 2012-2016
Table 29: Israel, Pay Later Card Transaction Values by Scheme (ILS Billion), 2012-2016
Table 30: Israel, Pay Later Card Transaction Values by Scheme (US$ Billion), 2012-2016
Table 31: Israel, Pay Later Card Transaction Values by Issuer (ILS Billion), 2012-2016
Table 32: Israel, Pay Later Card Transaction Values by Issuer (US$ Billion), 2012-2016
Table 33: Israel, Credit Cards in Circulation (Million), 2012-2020
Table 34: Israel, Credit Card Transaction Volumes, 2012-2020
Table 35: Israel, Credit Card Transaction Values (ILS), 2012-2020
Table 36: Israel, Credit Card Transaction Values (US$), 2012-2020
Table 37: Israel, Credit Cards in Circulation by Scheme (Thousand), 2012-2016
Table 38: Israel, Credit Card Transaction Values by Scheme (ILS Million), 2012-2016
Table 39: Israel, Credit Card Transaction Values by Scheme (US$ Million), 2012-2016
Table 40: Israel, Charge Cards in Circulation (Million), 2012-2020
Table 41: Israel, Charge Card Transaction Volumes, 2012-2020
Table 42: Israel, Charge Card Transaction Values (ILS), 2012-2020
Table 43: Israel, Charge Card Transaction Values (US$), 2012-2020
Table 44: Israel, Charge Cards in Circulation by Scheme (Thousand), 2012-2016
Table 45: Israel, Charge Card Transaction Values by Scheme (ILS Billion), 2012-2016
Table 46: Israel, Charge Card Transaction Values by Scheme (US$ Billion), 2012-2016
Table 47: Israel, Prepaid Cards in Circulation (Thousand), 2012-2020
Table 48: Israel, Prepaid Card Transaction Values (ILS Billion), 2012-2020
Table 49: Israel, Prepaid Card Transaction Values (US$ Million), 2012-2020
Table 50: Definitions of Commonly Used Terms
Table 51: Common Features of Payment Cards

List of Figures
Figure 1: Israel, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016
Figure 2: Israel, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016
Figure 3: Israel, E-Commerce Value 2012-2020
Figure 4: Israel, Population and Economic Indicators
Figure 5: Israel, ATMs, POS Terminals and Household Consumption
Figure 6: Israel, Payment Cards Transaction Value and Cards in Circulation, 2012-2020
Figure 7: Israel, Debit Card Penetration and Turnover Per Card
Figure 8: Israel, Debit Cards Scheme and Issuer Transaction Value Share, 2016
Figure 9: Israel, Pay Later Card Penetration and Turnover Per Card
Figure 10: Israel, Pay Later Cards Scheme and Issuer Transaction Value Share, 2016
Figure 11: Israel, Prepaid Cards in Circulation and Transaction Value, 2012-
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  • Bank Leumi
  • Bank Hapoalim
  • Isracard
  • ICC Cal
  • Visa
  • Mastercard
  • American Express
  • Diners Club
Note: Product cover images may vary from those shown
5 of 4
Note: Product cover images may vary from those shown
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