Mizrahi Tefahot Launches Contactless ATM Cash Withdrawals in Israel
Mizrahi Tefahot Bank has become the first bank in Israel to enable cash withdrawals from ATMs using mobile phones and other contactless devices. Starting Sunday, customers can withdraw cash from the bank's cash withdrawal terminals (Kesafon) by simply tapping a device loaded with their credit card, such as a smartphone, tablet, smartwatch, ring, or payment bracelet, using NFC technology. This eliminates the need to insert a physical card into the ATM. The service currently supports only Mizrahi Tefahot credit cards and is limited to 200 of the bank's ATMs, excluding machines operated by other banks or private operators.
To use the service, customers must first add their bank card to digital wallets like Google Pay or Apple Pay. Withdrawals require authentication via the digital wallet (device lock code, facial recognition, or fingerprint) and entering a PIN on the ATM keypad. Mizrahi Tefahot issues Mastercard and Visa cards in partnership with Isracard, CAL, and MAX, and the project was developed in cooperation with credit card companies, local Visa and Mastercard representatives, and Shva, which provides the ATM network switching system.
Other Israeli banks still require inserting the physical card for ATM withdrawals, though some offer cardless cash withdrawal via banking apps or call centers, which involve multiple steps. Mizrahi Tefahot's new method simplifies this to a single tap and PIN entry.
The Bank of Israel announced plans to convert all ATMs in Israel to support contactless cash withdrawals by the end of 2030. The rollout will occur in phases: by July 2027, contactless withdrawals will be available on compatible ATMs within the customer's bank; by December 2027, cross-bank contactless withdrawals will be enabled; and by 2030, all ATMs will support contactless withdrawals. Currently, about half of Israel's ATMs have the necessary hardware but await software upgrades and regulatory approval.
Mizrahi Tefahot CEO Moshe Lari stated, "We are proud to be the first bank in Israel to offer customers the next generation of cash withdrawals. This step is part of our strategy to provide advanced, user-friendly, and innovative banking services, demonstrating our commitment to lead the market and create real value for our customers."
