Israelis Embrace Digital Payments, But Cash Remains Resilient
Translated & summarized from Maariv by baba
More Israelis are using digital payment methods, but cash remains prevalent, according to a Bank of Israel review. The amount of cash in circulation grew by about 2% annually between 2024-2025, a slower rate than the 7% seen in 2021-2023. Cash's simplicity and reliability ensure its continued use for individuals and businesses, and its accessibility is crucial for economic continuity during emergencies.
The story in 6 lines · by baba
- Digital payment use is rising among Israelis, yet cash circulation continues to grow.
- Cash in circulation increased by an average of 2% annually from 2024-2025.
- The previous growth rate for cash circulation was approximately 7% annually.
- Cash remains popular due to its simplicity, immediacy, and independence from technology.
- Small businesses and households find cash useful for immediate transactions and as a backup.
- The Bank of Israel stresses cash's importance for economic continuity, especially during emergencies.
Despite a significant increase in Israelis using digital payment methods like credit cards and online wallets, the amount of physical cash in circulation continues to grow, albeit at a slower pace. A review published by the Bank of Israel revealed that between 2024 and 2025, the total value of banknotes and coins held by the public and banks increased by an average annual rate of approximately 2%. This contrasts with a higher average annual growth rate of about 7% observed between 2021 and 2023.
The central bank attributes the continued prevalence of cash to its simplicity, immediacy, and independence from technology requirements such as active apps, phone batteries, or internet connectivity. For small businesses, cash offers immediate final payment without reliance on clearing systems. Households often view cash as a backup, usable when other systems are unavailable.
The Bank of Israel emphasizes the importance of maintaining cash accessibility for both routine and emergency situations. Recent events have highlighted cash's role in ensuring economic continuity, particularly during scenarios involving power or communication infrastructure failures or cyberattacks.
