Israel

A highly developed digital payments market combining cards, digital wallets, payment apps and advanced banking infrastructure

Overview

Israel has a highly developed digital payments market supported by a sophisticated banking sector, widespread card usage and strong adoption of digital financial services. Consumers use payment cards, bank transfers, digital wallets and payment applications for everyday purchases and e-commerce, while advanced banking infrastructure supports both domestic and international transactions.

The country has also invested heavily in modernising its payment infrastructure. Electronic funds transfers, digital wallets, payment applications and real-time settlement systems form an increasingly important part of the payments ecosystem, while the adoption of EMV and contactless payments has further modernised card acceptance.

Israel’s strong technology and fintech sectors have also contributed to continued innovation in digital payments, making the country an important market for international merchants and payment providers.

Key Characteristics

• Strong adoption of debit and credit cards for everyday and e-commerce payments

• Widespread use of contactless card payments and digital wallets

• Growing adoption of payment applications and mobile payments

• Extensive electronic funds transfer infrastructure

• ZAHAV provides real-time gross settlement for high-value payments

• Strong banking and fintech ecosystem supporting payment innovation

• Increasing use of digital payment services across consumer and business transactions

• Advanced payment infrastructure overseen by the Bank of Israel

Supported Payment Methods

Visa

Mastercard

Debit Cards

Credit Cards

Electronic Funds Transfer (EFT)

Bank Transfers

Digital Wallets

Mobile Payment Applications

Apple Pay

Google Pay

QR Payments

Key Providers

Israel’s payments ecosystem includes major domestic banks, international card networks, payment processors, payment infrastructure providers and fintech companies. The country’s banking sector provides extensive card, account-to-account and digital banking infrastructure, while specialist payment companies support merchant acquiring, processing and alternative payment methods.

The Israeli payments infrastructure also includes SHVA (Automatic Bank Services), which operates important payment-card and ATM infrastructure, and MASAV (Bank Settlement Center), which operates the country’s credits, debits and transfers system.

International payment providers also support merchants operating in Israel, providing access to card acquiring, payment processing, fraud prevention and alternative payment methods.

Regulation and Compliance

The Bank of Israel plays a central role in regulating and overseeing Israel’s payment and settlement systems. Its Payment and Settlement Systems Department is responsible for operating key infrastructure, supervising controlled payment systems and developing long-term policy for the country’s payments ecosystem.

Israel’s payment systems are governed by legislation including the Bank of Israel Law and the Payment Systems Law. The Bank of Israel oversees important systems including ZAHAV, the MASAV credits, debits and transfers system, and payment-card and ATM systems operated by SHVA.

Security and authentication are also important elements of the Israeli payments framework. The Bank of Israel has established principles for strong customer authentication, including support for technologies such as one-time passwords, device authentication, biometrics and 3-D Secure for card transactions.

Strengths / Differentiators

• Highly developed digital payments infrastructure

• Strong adoption of cards, contactless payments and digital wallets

• Advanced banking and fintech ecosystem

• Established electronic funds transfer infrastructure

• ZAHAV provides real-time gross settlement for high-value transactions

• Strong focus on payment security and authentication

• Sophisticated technology sector supporting payment innovation

• Important market for international technology and e-commerce businesses

Payments in Israel for International Merchants

Israel offers international merchants access to a technologically sophisticated and digitally engaged consumer market. Cards remain an important payment method for e-commerce, while digital wallets, payment applications and bank-based payment options provide additional ways for customers to complete transactions.

For merchants targeting Israeli consumers, supporting major international card schemes alongside relevant digital payment methods can help provide a familiar and convenient checkout experience. Merchants may also benefit from working with a payment provider that understands the local acquiring environment and can support the specific payment methods and settlement requirements relevant to the Israeli market.

Israel’s strong technology sector and significant cross-border business activity also make the market relevant to international SaaS companies, technology businesses, online services and e-commerce merchants.

Want to know more about payments in Israel?

Contact Bizz2Pay today to discuss your requirements or get introduced to the right Payment Provider covering the most popular payment methods offered in Israel.