Israel Profile: Israel Limits Use of Cash to Accelerate Growth of Cashless Payments

06 Sep, 2020 . 4 minutes

Israel’s population was estimated at 8.6 million by May 2020 with the average highest online spending from those aged between 25 years and 34 years at 27.2 percent. Ecommerce users have been growing 2.8 percent year on year and are expected up to 3.9 million users in 2020. The average spent by online shoppers was US$1,925 as at early 2020. The government is concentrating on accelerating digital payments.

Internet penetration was up to 84 percent in January 2020 - a 4.3 percent increase in 2019. Mobile penetration is high at 118 percent. The ecommerce market is growing at 11.6 percent a year and expects to have revenue of US$7,448 million by the end of 2020. Israel cross-border ecommerce shoppers mostly purchase from China, the US and the UK.

Cash use has fallen since the government limited cash transactions to US$1,713. The digitalization of business infrastructure is shaping payment services. The growth of point of sale terminals is moving from traditional banking to digital and mobile services. Meanwhile, cards remain the most preferred payment method followed by bank transfers and digital wallets.

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