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Tel Aviv, June 26, 2024
In a major announcement, the Bank of Israel has announced the approval of the popular mobile financial settlement applications bit and PayBox to charge fees. These measures are accompanied by a number of restrictions aimed at protecting users and ensuring competition in the market.
The bit app, owned by Apoalim Bank, and PayBox, which is managed by Discount Bank, have gained immense popularity among Israeli users. However, the free maintenance of these applications has led to significant losses for banks. While the Apoalim and Discount banks continue to support these services, the Leumi bank refused to participate in such projects altogether, and the Isracard company stopped its attempts to create a similar payment application, according to ICE.co.il.
The inability to generate revenue from these services creates financial stress for banks, which could lead to the exit of one of the operators from the market or the closure of both applications. This development threatens the competition and availability of mobile payment services for Israeli users.
Under conditions where banks are forced to finance applications at a loss, the Bank of Israel’s decision to introduce commissions is a necessary step. This should help maintain the stability and competitiveness of the mobile payments market, providing users with access to modern financial services.
Observers note that the new regulation should balance the interests of banks and consumers, supporting healthy competition and preventing market monopolization. The introduction of commissions may be critical for the long-term survival and development of mobile payment applications in Israel.
