Israel Sees Surge in Digital Wallet Use, Bank of Israel Warns of Cash Accessibility Issues
Translated & summarized from Behadrei Haredim by baba
Israel's use of digital wallets has surged to 47% weekly, while cash usage has fallen to 48%, according to the Bank of Israel. Despite this shift, NIS 134.7 billion in cash is still held, though its growth rate has slowed. The bank warns that declining cash use could reduce accessibility and increase costs, impacting even those who don't regularly use cash, especially during emergencies.
The story in 6 lines · by baba
- Weekly digital wallet use in Israel has jumped from 5% in 2019 to 47% in 2025.
- Weekly cash usage has dropped from about 80% to 48% in the past year.
- Around 70% of Israelis still want to use cash in the future.
- The total amount of cash held is approximately NIS 134.7 billion.
- Bank of Israel warns of reduced cash accessibility and increased costs.
- The trend could impact public access to cash during emergencies.
Israel is experiencing an unprecedented acceleration in digital payment adoption, significantly reducing reliance on traditional cash. A new review by the Bank of Israel's Currency Department reveals a substantial shift towards mobile payment methods, raising concerns among policymakers about the future accessibility of cash for those who still prefer it.
The data highlights a dramatic transformation: the percentage of Israelis using digital wallets at least once a week has surged from a mere 5% in 2019 to 47% in 2025. Concurrently, weekly cash usage has plummeted from approximately 80% to about 48% in the past year. Despite this decline in active use, the total amount of cash held by the public and in bank vaults remains substantial, standing at around NIS 134.7 billion. However, the growth rate of this cash volume has slowed to about 2% annually in 2024 and 2025, a marked decrease from the rapid 7% growth observed between 2021 and 2023.
Bank of Israel data indicates that approximately 70% of Israelis express a desire to continue using cash in the future, a figure that has remained consistent. Nevertheless, the central bank warns of the potential consequences of the current trend. A continued decrease in daily cash usage could lead to the scaling back of existing infrastructure, reduced cash accessibility in practical terms, and ultimately, increased costs for consumers who rely on it. This potential impact extends beyond daily cash users, affecting the broader public who may need access to cash infrastructure during emergencies.
