The Bank of Israel has recently made a decision that will impact the mobile financial payment apps bit and PayBox. From now on, these apps will be allowed to charge fees to users whose transfer turnover exceeds 25,000 shekels per year. However, there are certain restrictions in place.
The bit application is owned by Hapoalim Bank, while PayBox is owned by Discount Bank. Both of these apps have a large user base and are extremely popular. However, due to their lack of profitability in supporting payment applications without transfer fees, banks have been losing money.
Isracard attempted to organize its own payment application but soon ceased its efforts. As a result, the market has been dominated by bit and PayBox, with Hapoalim and Discount banks financing them at a loss. This situation has raised concerns that one of the mobile payment application operators may cease operations or both apps may close down altogether.
In response to these concerns, the Bank of Israel has made this decision to ensure the sustainability of these payment services for Israeli users in the long term. Currently, most users do not reach this threshold and will continue using the apps for free.
