International Bank Links Airline Loyalty to Young Trader Incentives
Translated & summarized from Calcalist by baba
The International Bank is introducing a new program allowing Beyond credit card holders aged 18-30 and soldiers to convert loyalty points into cash for investment purposes. This initiative aims to compete with investment houses attracting young traders and to retain customers in the face of increased airline loyalty program competition. To access the cash conversion, customers must make at least two trades per month, incurring significant annual fees. The point accumulation rate also makes it challenging for the target demographic to reach the maximum benefit cap.
The story in 5 lines · by baba
- International Bank allows Beyond cardholders to convert loyalty points to cash for investments.
- The program targets customers aged 18-30 and soldiers, linking to the TopTrade platform.
- Customers must make at least two trades monthly to convert points, incurring fees.
- The bank aims to counter competition from investment houses and rival loyalty programs.
- Reaching the maximum benefit cap of NIS 1,200 is difficult for the target demographic.
The International Bank is launching a new initiative to bridge two competitive fronts in the local financial market: the battle for airline loyalty club members and efforts to retain young traders against a shift to investment houses. Under the new plan, holders of the bank's Beyond credit card can convert points earned from daily purchases into cash credits for their checking accounts, intended for capital market investments. This benefit targets customers aged 18-30 and soldiers who have the bank's credit card and subscribe to TopTrade, a platform launched in August 2025 offering partial exemptions on securities trading fees for young people.
Previously, Beyond card points could only be used for flights and vacation purchases, similar to other credit card programs. Now, users can convert these points into cash deposited into their checking accounts. While users will declare the funds are for securities trading, they are not obligated to use them as such. The International Bank, the smallest of Israel's five largest banks, holds two advantages: the largest trading volume and significant activity in aviation benefits through its Beyond card. However, competition is intensifying on both fronts.
Investment houses are attracting young clients with cheaper trading alternatives, and the transfer of the Fly Card club from CAL to Isracard has reignited fierce competition in the aviation sector. The bank's new move aims to bolster its position amidst these challenges. A key condition for converting points to cash is making at least two trades per month. For TopTrade customers, each trade in Israeli securities costs approximately NIS 5, and foreign securities cost $5. This means customers must generate at least NIS 120 annually in trading fees for domestic stocks or about $120 for foreign stocks to access their credit card points as cash.
Furthermore, the accumulation rate on the Beyond card makes reaching the benefit cap of NIS 1,200 difficult for young customers. Those spending up to NIS 4,000 monthly under the TopTrade accelerated rate earn one point per NIS 130 spent domestically (or NIS 65 abroad). This results in approximately NIS 370 accumulated annually for a customer with NIS 4,000 in monthly expenses. To approach the NIS 1,200 cap, monthly spending would need to exceed NIS 10,000, which is uncommon for the target demographic of soldiers and individuals aged 18-30. To encourage sign-ups, the International Bank is offering a joining bonus of about 500 points.
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