Automated Banking Services: In October the amount of expenses paid via cellular - 1.059%

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by Ifi Reporter Category:Financial Dec 7, 2021

How many Israelis attach their cell phones to cash registers in shops and restaurants instead of attaching a credit card? The answer is a minority within a minority, according to data from an automated bank services company that manages the national credit card payment system in Israel. The company announces for the first time the volume of expenses in transactions via smartphones.
According to data from the Automated Banking Services Company last October, the amount of expenses paid via cellular at the funds in Israel was NIS 373.76 million. Of all credit card expenses in October (within Israel alone), NIS 35.2 billion, this is a negligible percentage: 1.059%. That is, even though October is the sixth month in a row during which there has been an increase in the use of digital wallets, Israelis are still not adopting a new habit of attaching their cell phone to a cash register or smartphone, instead of a plastic card.
Thanks to the entry of Apple Pay, Apple's digital wallet to Israel about six months ago, the volume of purchases in digital wallets jumped 20 times. Half a year ago, the volume of expenses in digital wallets was only NIS 18.12 million.

However, as the data show, the percentage of payments in mobile wallets is still negligible. This is despite the fact that Apple Pay does not operate alone in the market. It is only relevant for iPhone, iPad and Apple Watch users, as users of smartphones and watches operating through the Android operating system, which are the majority of the market, have been able to use local digital wallets like Bank Hapoalim's for over a year. Isracard, Max and ICC also have digital wallets that allow you to enter credit cards for the app and pay at the cash register in the store without the need for the plastic card, but by attaching the phone or smartphone to the cash register terminal.
Now that Google Pay went live in Israel this morning and allows a variety of benefits through credit card companies to encourage downloading the app from the Google Play app store and using the phone as a means of payment, the increase in the number of payers through digital wallets is expected to accelerate.
62.4% of credit card transactions in October were made using the EMV security standard that allows for safer credit purchases through chip reading thanks to NFC technology that allows "in-air" communication between devices and not through card ironing. This is not an impressive figure because most businesses in Israel have switched to directives from the Bank of Israel, which allow payment by attaching the card or telephone to the cash register instead of ironing the magnetic stripe.
58.1% of the transactions in the EMV system were transactions of attaching the device to the cash register: Contactless and digital wallets. Here, too, there is no great innovation: most of these cash registers only allow the attachment of the card or cell phone to the cash register.

More than half a year after the digital wallet Apple Pay was launched in Israel and after more than a year that phone users with the Android operating system pay here at the box office with the mobile phone: Google Pay arrives in Israel. She enters the country late after a number of postponements.

The Google payments app is available from Monday in the Google app store (Google Play) and Israeli customers of all banks and credit card companies will be able to use Google's digital wallet for the first time. You have to download the app (for free), enter credit card numbers into it, take care of the password for the phone (for those who have not yet locked the phone with the password), unlock the phone screen and attach the phone to the payment terminal at the business where you want to pay. There is no need to open the app for this but only to unlock. You can pay this way by attaching the phone without the need for a secret code, as opposed to such a payment with a credit card that requires a secret code for purchases over NIS 300.
The arrival of Google Pay in Israel is made possible thanks to the transition of most businesses in Israel to the strict EMV security standard that uses a disposable chip and token instead of the magnetic stripe, as well as thanks to the use of NFC - technology that allows contact between the phone or credit card and the cash register terminal. It is these technologies that allow payment by credit card by attaching it to the cash register and that allow payment via the mobile phone, by attaching it to the cash register, provided that you have previously installed a digital wallet application in it.
According to the credit company Max, there is a monthly increase of about 10% in users of digital wallets, which obviates the need for a physical credit card, but according to the credit card companies, the number of phone users as a means of payment replacing a credit card is still small. . According to MasterCard, the percentage of mobile transactions has grown by about 400% since the beginning of the year, but constitutes only 7% of the total purchases of tickets at terminals that support this technology.
All credit card companies and banks will give benefits to app users, even though most of them already have their own digital wallets. Among other things, Bank Hapoalim allows payment in bit (not only for contacts, but also as an app that replaces a credit card) and Visa Cal has Cal Pay. This is because Google's Android operating system, which is installed on most cell phones in Israel, allows the operation of many such applications, while Apple users are limited to the Apple Pay application only.
Although Google Pay competes with the apps of credit card companies and banks, they will all give benefits to Google Pay users due to agreements with Google, and so that their credit card will be the first to use the digital wallet and become the user's default.
Among other things, Isracard will offer a free Domino's pizza coupon to those who join. American Express will give a 10% refund. MasterCard cards will be doubled and the company will also provide a free meal at McDonald's worth up to NIS 45 when buying another meal. Also, a 50% discount will be given on the beverage vending machines and automatic snacks that carry the promotional sticker. Bank Leumi (which owns the Pepper app) will give its customers who use Google Pay a refund of NIS 50 to the first 15,000 customers who use Leumi's credit card using the Google Pay app.
The Max app will offer, among other things, a joining benefit of NIS 30 as a gift at Arcaffe, NIS 25 to be redeemed at Sefarim Junction for purchases over NIS 100, NIS 30 at Kravitz for purchases over NIS 100, and a 1 + 1 purchase of a drink at the Be Peresh chain. All this, in addition to the company's indulgence program and the accumulation of refunds on the cards designated for it.

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