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The Bank of Israel has led the Israeli economy toward a reform in the payments market over recent years. Within that framework, acquiring payment card transactions was shifted to the EMV standard, which improved the security of the payment and allowed the entry of innovative digital services, such as contactless payments—which make up about half the number of transactions in Israel, and executing transactions via wallets in smartphones, which make up around 17 percent of the transactions in Israel.

The reform that was implemented opened the door not only to the payments world but also to additional value offers to consumers via the digital wallets, such as identification at health funds, flight tickets, and additional services in the future.

Over recent years, the Bank of Israel has guided businesses in the switch to the new payments system, and on an individualized basis helped businesses that encountered various difficulties and complexities in implementing the new standard, particularly gasoline stations. As such, those businesses received, in accordance with the complexities, specific permissions to complete the shifts, with the latest being December 31, 2024.

Based on data from Shva Ltd., as of the end of April 2023, more than 99 percent of payment terminals in Israel have been successfully switched over to the new standard.

Following the Bank of Israel notice[1] regarding the completion of the final milestone in implementing the EMV standard, the Bank today instructed the Shva company to continue supporting the old payment card standard until December 31, 2024.

As such, the latest date for the outline was set for December 31, 2024. After that date, it will no longer be possible in Israel to execute payment and transactions that do not comply with the EMV standard.

We thank all the entities that were partners in achieving this important achievement for the benefit of the Israeli economy in general, and the consumers in Israel in particular.

Governor of the Bank of Israel Prf. Amir Yaron said, “One of our main targets at the Bank of Israel in recent years has been to develop the payments market in Israel and to position it among the top tier of major countries worldwide. Today we are marking an additional main step in the process of integrating the EMV standard. It is an important step that has been led, in a professional manner, by the Payment and Settlement Systems Department and the Banking Supervision Department at the Bank of Israel in the past years. I would like to commend the rapid implementation in the Israeli market—both in terms of businesses and in terms of the general public. We will continue to promote additional steps that will lead to increasing the sophistication of the financial system, enhancing the competition in it, and improving the customer’s welfare.

Mr. Oded Salomy, Payment and Settlement Systems Department Director said, “After years in which the Israeli economy worked via the old payment cards standard, the time arrived to establish a date for ending the support of the old standard and to switch to implementing the EMV standard for the Israeli economy overall. The notice of the final date for shifting to the EMV standard is intended to provide clarity and sufficient time for those businesses that have not yet completed the changeover to do so in accordance with the specific outlines drawn up. The Bank of Israel is promoting an increase in efficiency of the economy and digital economy that will lead to value offers that are secure, inexpensive and advanced for the benefit of the consumers and businesses in Israel. The Bank of Israel will continue to advance steps that place Israel in line with the advanced countries worldwide and strives to lead the world in certain aspects of the payment sphere, while maintaining efficiency, innovation, and stability of the payment services, for the benefit of Israel’s economy and its citizens.”