Israelis Shifting Away From Cash, Raising Concerns Over Access

The proportion of Israelis using cash at least once a week has significantly decreased, falling from approximately 80% in 2019 to 48% in 2025. Concurrently, weekly usage of digital wallets has surged from 5% to 47% during the same period, according to a report released on Monday, October 12. The Bank of Israel has issued a warning that this declining reliance on cash could make depositing and withdrawing money more difficult and expensive. Despite the trend towards digital payments, a substantial portion of the population continues to use cash, with about 70% deeming it important to have physical currency available in case of digital payment system failures. The central bank fears a cycle where reduced cash usage leads to fewer services for cash transactions, which in turn discourages further cash use. The Bank of Israel estimates that maintaining existing cash infrastructure is more cost-effective than rebuilding it later. Currently, cash accessibility in Israel remains high, with around 9,150 ATMs, a number considered relatively large per capita compared to other studied nations and still growing. However, only about 2,600 of these ATMs are bank-owned, and these are preferred by the public due to lower fees. Non-bank ATMs are more widespread but charge higher fees, and cash deposits are only possible at bank-operated machines. Therefore, the total number of ATMs does not guarantee affordable access to cash services. Even with the shift to digital, cash still plays a notable role in daily purchases. A 2023 survey by the Central Bureau of Statistics found that cash accounted for 43% of the number of daily transactions and 32% of their total value. Usage patterns vary significantly across different demographics. In the Arab sector, 75% of the total purchase value is paid with cash, compared to 29% among the ultra-Orthodox and 15% among other Jewish Israelis. Socioeconomic status also shows a similar disparity, with cash accounting for 57% of purchase values in low-income households, 27% in middle-income, and 14% in high-income households. Smaller purchases are more frequently paid for with cash, representing 63% of transactions under 10 shekels. The amount of cash in circulation has also seen fluctuations, increasing by 21% in 2020 at the onset of the COVID-19 pandemic and growing by an average of about 7% annually from 2021 to 2023. Growth has slowed considerably in the past two years, to 1.8% in 2024 and 2.4% in 2025. For many, cash serves as a financial reserve, with 70% of respondents considering it important for digital payment failures and 41% for security or economic crises. A significant 69% of Israelis wish to continue using cash. In relation to the economy, cash in circulation in Israel represents 6.4% of GDP, compared to 10% in the Eurozone and 9% in Switzerland. While cash usage is declining globally, the desire to retain it remains strong, with over 90% of surveyed Americans stating they do not intend to stop using it. The Israeli government faces a dilemma between its law to limit cash use, aimed at combating the shadow economy and tax evasion, and the potential weakening of essential infrastructure for public use, especially during emergencies. The Bank of Israel proposes maintaining cash accessibility while simultaneously restricting its use in illicit activities. Other countries have implemented measures, such as the UK requiring banks to provide alternatives when closing branches or ATMs, Norway legally reinforcing the right to pay with cash, and Ireland establishing rules for ATM and service accessibility. The Bank of Israel has not yet proposed specific legislative changes but includes maintaining cash access as part of its strategy for the coming years.