Israel: Central Bank Publishes Position Paper on Banks' Mobile Payments Application Activity

On July 9, 2019, the Bank of Israel released a policy paper in which it states its position in relation to the issue of banks’ payments application activity.

In the paper, the central bank points out that currently there are three dominant applications in the area of mobile payments in the country operated by banks (namely, Bank Hapoalim’s bit, Bank Leumi’s Pepper Pay, and Discount Bank’s PayBox), and all of which enable peer-to-peer (P2P) payments.

Following global trends, the central bank recognises the need to expand this means of payment to peer-to-business (P2B) payments. However, a balanced approach should be adopted based on which new players, such as the separated credit card companies, will also be able to enter the specific market and offer such applications.

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