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Israels Cards and Payments Industry: Emerging Opportunities, Trends,

Size, Drivers, Strategies, Products and Competitive Landscape





Synopsis
The report provides top-level market analysis, information and insights into Israels cards and payments industry,
including:
Current and forecast values for each category of Israels cards and payments industry, including debit cards, credit
cards and prepaid cards
Comprehensive analysis of the industrys market attractiveness and future growth areas
Analysis of various market drivers and regulations governing Israels cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks
and other institutions in the market
Comprehensive analysis of consumer attitudes and buying preferences for cards
The competitive landscape of Israels cards and payments industry

Summary
The global financial crisis produced a brief period of recession in Israel, however, the economy quickly recovered
due to the countrys fiscal policies and regulations, supported by a robust banking sector, proved optimistic for the
cards and payments industry. Consequently, the collective share of electronic payment cards instruments including
credit transfers, direct debit and card payments increased during the review period (20092013) from 78.6% in
2009 to 81.4% in 2013. The countrys economic growth is anticipated to provide further impetus for the cards and
payments industry over the forecast period (20142018).
The Israeli payment cards instrument grew in value and volume terms during the review period. In terms of
transaction value, the payment cards instrument grew from ILS242.6 billion (US$61.7 billion) in 2009 to ILS312
billion (US$86.2 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 6.49% and is
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anticipated to post a CAGR of 3.93%, over the forecast period, to reach to ILS383.2 billion (US$105.7 billion) in
2018. Similarly, in terms of the number of cards in circulation, the payment cards instrument grew from 7.4 million
in 2009 to 9 million in 2013, at a CAGR of 4.97% and is anticipated to post a CAGR of 2.99% over the forecast
period, to reach 10.5 million in 2018.
Many factors supported review-period growth, such as increases in per capita income and payment infrastructure
modernization. As banking customers become more sophisticated, banks are differentiating their product offerings
and subsequently card customization for specific customer groups such as high income individuals, students and
the young. Banks are making use of digital channels such as online, mobile and social media to promote their
products and services.
Two key trends in Israels credit cards market are the issuance of non-bank credit cards by credit card companies
usually linked to customer clubs and the expansion of the range of services offered by credit card companies in
areas such as credit and financing. This includes the issuance of revolving credit cards which allow cardholders to
determine debit amounts and payment dates according to their need and ability to pay.
In terms of number of cards in circulation, the prepaid card market accounted for the smallest payment cards
instrument share of 6.8% in 2013; a share that is anticipated to decrease to reach 5.5% in 2018. This is mainly due
to of lack of obtainability of prepaid card variants. Currently, prepaid card variants in the form of gift cards are
widely available. This offers abundant growth opportunities for banks and card issuers.
In terms of number of cards in circulation all card markets increased with the exception of the prepaid cards
market. However, the prepaid cards market registered the highest review-period CAGR of 14.71%, in terms of
transaction value, in comparison to credit and debit cards, which recorded respective CAGRs of 6.83% and 5.62%.
The prepaid cards market increased from ILS910.1 million (US$231.4) in 2009 to ILS1.6 billion (US$435.3) in 2013
and has the potential to reach ILS2.3 billion (US$632.1 million) by the end of 2018, representative of a forecast-
period CAGR of 7.08%.

Scope
This report provides a comprehensive analysis of Israels cards and payments industry.
It provides current values for Israels cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Israels cards and payments
industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions.
It profiles the major banks in Israels cards and payments industry.



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Reasons To Buy

Make strategic business decisions using top-level historic and forecast market data related to Israels cards and
payments industry and each market within it.
Understand the key market trends and growth opportunities within Israels cards and payments industry.
Assess the competitive dynamics in Israels cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Israel.
Gain insights into key regulations governing Israels cards and payments industry.

Key Highlights
The Israeli payment cards instrument grew in value and volume terms during the review period. In terms of
transaction value, the payment cards instrument grew from ILS242.6 billion (US$61.7 billion) in 2009 to ILS312
billion (US$86.2 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 6.49% and is
anticipated to post a CAGR of 3.93%, over the forecast period, to reach to ILS383.2 billion (US$105.7 billion) in
2018. Similarly, in terms of the number of cards in circulation, the payment cards instrument grew from 7.4 million
in 2009 to 9 million in 2013, at a CAGR of 4.97% and is anticipated to post a CAGR of 2.99% over the forecast
period, to reach 10.5 million in 2018.
Two key trends in Israels credit cards market are the issuance of non-bank credit cards by credit card companies
usually linked to customer clubs and the expansion of the range of services offered by credit card companies in
areas such as credit and financing. This includes the issuance of revolving credit cards which allow cardholders to
determine debit amounts and payment dates according to their need and ability to pay.
In terms of number of cards in circulation, the prepaid card market accounted for the smallest payment cards
instrument share of 6.8% in 2013; a share that is anticipated to decrease to reach 5.5% in 2018. This is mainly due
to of lack of obtainability of prepaid card variants. Currently, prepaid card variants in the form of gift cards are
widely available. This offers abundant growth opportunities for banks and card issuers.
In terms of number of cards in circulation all card markets increased with the exception of the prepaid cards
market. However, the prepaid cards market registered the highest review-period CAGR of 14.71%, in terms of
transaction value, in comparison to credit and debit cards, which recorded respective CAGRs of 6.83% and 5.62%.
The prepaid cards market increased from ILS910.1 million (US$231.4) in 2009 to ILS1.6 billion (US$435.3) in 2013
and has the potential to reach ILS2.3 billion (US$632.1 million) by the end of 2018, representative of a forecast-
period CAGR of 7.08%.
Mobile payments are an emerging trend in Israel and new systems allow merchants to process credit and debit
payments via smartphones and tablets. In October 2012, Isracard entered into an agreement with VeriFone
Systems, a US-based provider of secure mobile payment solutions, to promote VeriFone SAIL encrypted card

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readers for iOS and Android devices. Isracards business customers will download an app and receive a card reader
free of charge to support the service. Mobile payment systems are expected to grow strongly with the rising
number of smartphone users in Israel.
Growing competition among banks to retain existing customers and add new ones prompted the introduction of
new products and service offerings. In 2012, ICC Cal launched NFC technology in association with Israeli cellular
provider, Cellcom. Likewise, in 2010, Israeli mobile commerce, payments and marketing specialist DigiMo Group
announced that it is extending support for NFC phones and stickers to its barcode-based mobile payments system.

Table Of Content
1 Executive Summary
2 Analysis of Market Environment, Key Trends and Drivers
2.1 Payment Infrastructure and Emerging Technologies
2.1.1 Growing number of automatic teller machines (ATMs)
2.1.2 Growing number of POS terminals
2.1.3 Rising internet penetration
2.1.4 Growing mobile payments (m-payments)
2.2 Business Drivers
2.2.1 Growth in retail industry
2.2.2 Growth in e-commerce
2.3 Economic Drivers
2.3.1 GDP growth
2.3.2 GDP per capita
2.3.3 Stable inflation
3 Cards and Payments Industry Share Analysis
3.1 Industry Overview
3.1.1 Credit transfer
3.1.2 Check payments
3.1.3 Direct debit

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3.1.4 Payment cards
4 Regulatory Framework and Card Fraud Statistics
4.1 Regulatory Framework
4.1.1 Overview
4.1.2 Anti-money laundering and counter terrorism financing (AML/CTF)
4.1.3 Foreign direct investment (FDI) regulations
4.2 Card Fraud Statistics
4.2.1 Card-not-present fraud
4.2.2 Lost or stolen card fraud
4.2.3 Counterfeit card fraud
4.2.4 Card ID theft
5 Emerging Consumer Attitudes and Trends
5.1 Industry Segmentation and Targeting
5.1.1 Retail segment
5.1.2 Corporate segment
5.2 Travel and Tourism Spending
5.2.1 Outbound tourist trips
5.2.2 Outbound tourist spending
6 Analysis of Payment Cards and Growth Prospects
6.1 Payment Cards Instrument Share Analysis by Card Market
6.2 Size of and Forecast for the Card Market
6.2.1 Analysis by number of cards in circulation
6.2.2 Analysis by transaction value
7 Analysis of Credit Cards Market and Growth Prospects
7.1 Overall Market Size and Forecast
7.1.1 Analysis by number of cards in circulation

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7.1.2 Analysis by transaction value
7.1.3 Analysis by transaction volume
7.2 Transaction Share Analysis by Channel
7.2.1 Analysis by transaction value
7.2.2 Analysis by transaction volume
7.3 Personal Credit Cards Segment Size and Forecast
7.3.1 Analysis by number of cards in circulation
7.3.2 Analysis by transaction value
7.3.3 Analysis by transaction volume
7.4 Commercial Credit Cards Segment Size and Forecast
7.4.1 Analysis by number of cards in circulation
7.4.2 Analysis by transaction value
7.4.3 Analysis by transaction volume
7.5 Competitive Landscape
7.5.1 Scheme share analysis
7.5.2 Issuer share analysis
8 Analysis of Debit Cards Market and Growth Prospects
8.1 Overall Market Size and Forecast
8.1.1 Analysis by number of cards in circulation
8.1.2 Analysis by transaction value
8.1.3 Analysis by transaction volume
8.2 Transaction Share Analysis by Channel
8.2.1 Analysis by transaction value
8.2.2 Analysis by transaction volume
8.3 Competitive Landscape
8.3.1 Scheme share analysis

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8.3.2 Issuer share analysis
9 Analysis of Prepaid Cards Market and Growth Prospects
9.1 Overall Market Size and Forecast
9.1.1 Analysis by number of cards in circulation
9.1.2 Analysis by transaction value
9.2 Open-Loop Prepaid Cards Segment Size and Forecast
9.2.1 Analysis by number of cards in circulation
9.2.2 Analysis by transaction value
9.3 Closed-Loop Prepaid Cards Segment Size and Forecast
9.3.1 Analysis by number of cards in circulation
9.3.2 Analysis by transaction value
10 Merchant Acquiring
11 Company Profiles of Card Issuers
11.1 Isracard Group
11.1.1 Key financials
11.1.2 Card portfolio
11.1.3 Strategies
11.2 Leumi Card
11.2.1 Key financials
11.2.2 Card portfolio
11.2.3 Strategies
11.3 Israel Credit Cards Ltd
11.3.1 Key financials
11.3.2 Card portfolio
11.3.3 Strategies
11.4 Union Bank of Israel

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11.4.1 Key financials
11.4.2 Card portfolio
11.4.3 Strategies
11.5 Mizrahi Tefahot Bank
11.5.1 Key financials
11.5.2 Card portfolio
11.5.3 Strategies
12 Appendix
12.1 Methodology
12.2 Contact Timetric
12.3 About Timetric
12.4 Timetrics Services
12.5 Definitions
12.6 Disclaimer
List Of Tables
Table 1: Israel Payment Instruments (ILS Billion), 20092013
Table 2: Market Entry Strategies of Foreign Banks
Table 3: Israel Card Fraud (ILS Million), 20092013
Table 4: Israel Cards for Students and Young Population, 2014
Table 5: Israel Cards for High-Income Customers, 2014
Table 6: Israel Cards for Shoppers, 2014
Table 7: Israel Cards for Corporate Customers, 2014
Table 8: Israel Payment Cards Instrument by Card Market (Thousand), 20092018
Table 9: Israel Payment Cards Instrument Size by Volume of Cards (Million), 20092018
Table 10: Israel Payment Cards Instrument Size by Transaction Value (ILS Billion), 20092018
Table 11: Israel Payment Cards Instrument Size by Transaction Value (US$ Billion), 20092018

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Table 12: Israel Credit Cards Market Size by Volume of Cards (Million), 20092018
Table 13: Israel Credit Cards Market Size by Transaction Value (ILS Billion), 20092018
Table 14: Israel Credit Cards Market Size by Transaction Value (US$ Billion), 20092018
Table 15: Israel Credit Cards Market Size by Transaction Volume (Million), 20092018
Table 16: Israel Personal Credit Cards Segment Size by Volume of Cards (Million), 20092018
Table 17: Israel Personal Credit Cards Segment Size by Transaction Value (ILS Billion), 20092018
Table 18: Israel Personal Credit Cards Segment Size by Transaction Value (US$ Billion), 20092018
Table 19: Israel Personal Credit Cards Segment Size by Transaction Volume (Million), 20092018
Table 20: Israel Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 20092018
Table 21: Israel Commercial Credit Cards Segment Size by Transaction Value (ILS Billion), 20092018
Table 22: Israel Commercial Credit Cards Segment Size by Transaction Value (US$ Billion), 20092018
Table 23: Israel Commercial Credit Cards Segment Size by Transaction Volume (Million), 20092018
Table 24: Israel Debit Cards Market Size by Volume of Cards (Million), 20092018
Table 25: Israel Debit Cards Market Size by Transaction Value (ILS Billion), 20092018
Table 26: Israel Debit Cards Market Size by Transaction Value (US$ Billion), 20092018
Table 27: Israel Debit Cards Market Size by Transaction Volume (Million), 20092018
Table 28: Israel Prepaid Cards Market Size by Volume of Cards (Thousand), 20092018
Table 29: Israel Prepaid Cards Market Size by Transaction Value (ILS Million), 20092018
Table 30: Israel Prepaid Cards Market Size by Transaction Value (US$ Million), 20092018
Table 31: Israel Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 20092018
Table 32: Israel Open-Loop Prepaid Cards Segment Size by Transaction Value (ILS Million), 20092018
Table 33: Israel Open-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 20092018
Table 34: Israel Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 20092018
Table 35: Israel Closed-Loop Prepaid Cards Segment Size by Transaction Value (ILS Million), 20092018
Table 36: Israel Closed-Loop Prepaid Cards Segment Size by Transaction Value (US$ Million), 20092018
Table 37: Bank Hapoalim Key Financial Indicators (ILS Million), Year Ended December, 20122013

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Table 38: Isracard Card Portfolio and Key Features, 2014
Table 39: Bank Leumi Key Financial Indicators (ILS Million), Year Ended December, 20122013
Table 40: Leumi Card Card Portfolio and Key Features, 2014
Table 41: IDB Key Financial Indicators (ILS Million), Year Ended December, 20122013
Table 42: ICC Cal Card Portfolio and Key Features, 2014
Table 43: Union Bank Key Financial Indicators (ILS Million), Year Ended December, 20122013
Table 44: Union Bank Card Portfolio and Key Features
Table 45: Mizrahi Tefahot Key Financial Indicators (ILS Million), Year Ended December, 20122013
Table 46: Mizrahi Tefahot Card Portfolio and Key Features
Table 47: Key Definitions
List Of Figures
Figure 1: Benchmarking the Israeli Payment Cards Instrument Against Other Regional Markets
Figure 2: Israel Growth of Various Card Markets (%), 20092018
Figure 3: Israel ATM Volume and Penetration, 20092018
Figure 4: Israel POS Volume and Penetration, 20092018
Figure 5: Israel Internet Penetration, 20092018
Figure 6: Israel Value of M-Payments (ILS Million), 20092018
Figure 7: Israel Retail Sales Value (ILS Billion), 20092018
Figure 8: Israel E-Commerce Value (ILS Billion), 20092013
Figure 9: Israel Real GDP Growth (%), 20092018
Figure 10: Israel Nominal GDP Per Capita (US$), 20092018
Figure 11: Israel Inflation (Consumer Price Inflation) Rate (%), 20092018
Figure 12: Israel Shares of Different Payment Instruments (%), 2009 and 2013
Figure 13: Israel Share of Various Card Frauds In Terms of Transaction Value (%), 2009 and 2013
Figure 14: Israel Card-Not-Present Fraud Value (ILS Million), 20092013
Figure 15: Israel Lost or Stolen Card Fraud Value (ILS Million), 20092013

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Figure 16: Israel Counterfeit Card Fraud Value (ILS Million), 20092013
Figure 17: Israel Card ID Theft Value (ILS Million), 20092013
Figure 18: Israel Cards and Payments Industry Segmentation by Card Type
Figure 19: Israel Volume of Outbound Tourist Trips (Thousand), 20092018
Figure 20: Israel Outbound Tourist Spending (ILS Billion), 20092018
Figure 21: Israel Payment Cards Instrument by Card Market (%), 20092018
Figure 22: Israel Payment Cards Instrument Size by Volume of Cards (Million), 20092018
Figure 23: Israel Payment Cards Instrument Size by Transaction Value (ILS Billion), 20092018
Figure 24: Israel Credit Cards Market Volume and Penetration, 20092018
Figure 25: Israel Credit Cards Market Size by Volume of Cards (Million), 20092018
Figure 26: Israel Credit Cards Market Size by Transaction Value (ILS Billion), 20092018
Figure 27: Israel Credit Cards Market Size by Transaction Volume (Million), 20092018
Figure 28: Israel Credit Cards Market Transaction Value Share Analysis by Channel (ILS Billion), 20092018
Figure 29: Israel Credit Cards Market Transaction Volume Share Analysis by Channel (Million), 20092018
Figure 30: Israel Personal Credit Cards Segment Size by Volume of Cards (Million), 20092018
Figure 31: Israel Personal Credit Cards Segment Size by Transaction Value (ILS Billion), 20092018
Figure 32: Israel Personal Credit Cards Segment Size by Transaction Volume (Million), 20092018
Figure 33: Israel Commercial Credit Cards Segment Size by Volume of Cards (Thousand), 20092018
Figure 34: Israel Commercial Credit Cards Segment Size by Transaction Value (ILS Billion), 20092018
Figure 35: Israel Commercial Credit Cards Segment Size by Transaction Volume (Million), 20092018
Figure 36: Israel Credit Cards Market Share by Scheme in Terms of Value of Transactions (%), 2013
Figure 37: Israel Credit Cards Market Share by Issuer in Terms of Value of Transactions (%), 2013
Figure 38: Israel Debit Cards Market Volume and Penetration, 20092018
Figure 39: Israel Debit Cards Market Size by Volume of Cards (Million), 20092018
Figure 40: Israel Debit Cards Market Size by Transaction Value (ILS Billion), 20092018
Figure 41: Israel Debit Cards Market Size by Transaction Volume (Million), 20092018

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Figure 42: Israel Debit Cards Market Transaction Value Share Analysis by Channel (ILS Billion), 20092018
Figure 43: Israel Debit Cards Market Transaction Volume Share Analysis by Channel (Million), 20092018
Figure 44: Israel Debit Cards Market Share by Scheme in Terms of Transaction Value (%), 2013
Figure 45: Israel Debit Cards Market Share by Issuer in Terms of Transaction Value (%), 2013
Figure 46: Israel Prepaid Cards Market Volume and Penetration, 20092018
Figure 47: Israel Prepaid Cards Market Size by Volume of Cards (Thousand), 20092018
Figure 48: Israel Prepaid Cards Market Size by Transaction Value (ILS Million), 20092018
Figure 49: Israel Open-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 20092018
Figure 50: Israel Open-Loop Prepaid Cards Segment Size by Transaction Value (ILS Million), 20092018
Figure 51: Israel Closed-Loop Prepaid Cards Segment Size by Volume of Cards (Thousand), 20092018
Figure 52: Israel Closed-Loop Prepaid Cards Segment Size by Transaction Value (ILS Million), 20092018
Figure 53: Israel Share of Merchant Acquirers in Terms of Number of POS Terminals, 2013

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