CursorinfoEconomy17:11

Israeli Shoppers May See Lower Prices on Shein and Temu

By Томер Адони

Translated & summarized from Cursorinfo by baba

CommunityNeutral tone

Russian · 6 newsrooms covering

Israeli shoppers may see lower prices on international sites like Shein and Temu after fintech company Nuvei received a license to process payments in Israel. This allows online retailers to reduce transaction costs, potentially passing savings to consumers. The extent of price reductions will depend on the sellers' decisions. Nuvei, which has a significant presence in Israel, aims to optimize payment systems for both merchants and buyers.

The story in 6 lines · by baba

Fintech firm Nuvei received a license to process payments in Israel, potentially lowering costs for online retailers.
Israeli consumers may see reduced prices on international e-commerce platforms like Shein and Temu.
The final decision on passing cost savings to consumers rests with the individual online sellers.
Nuvei's new license allows international companies to use local payment infrastructure, reducing transaction fees.
The company has a significant operational presence in Israel and has made several key acquisitions.
Nuvei aims to optimize payment systems, reducing both costs and transaction errors for businesses.

Israeli Shoppers May See Lower Prices on Shein and Temu — Editorial illustration generated by baba News, not a photograph of the event.

Millions of Israeli consumers may soon see lower prices on international e-commerce platforms like Shein and Temu, following a new decision by Israel's financial regulator. The fintech company Nuvei has received a license from the Israel Securities Authority to process payments within the country. This allows international online retailers to reduce their operational costs when serving Israeli customers.

Previously, purchases from foreign websites were often treated as international transactions, incurring additional expenses for merchants related to payment processing and foreign bank card servicing. With Nuvei's new license, these companies can utilize local payment infrastructure, potentially lowering transaction costs. The extent to which these savings translate into lower prices for consumers will depend on the individual decisions of the sellers.

Nuvei's President, Yuval Ziv, stated that the Israeli market is of significant interest to international sellers due to the high volume of online purchases and international travel by local consumers. He explained that using local payment solutions not only reduces transaction fees but also minimizes instances of suspicious activity flags that can disrupt transactions for both buyers and sellers.

The company has been preparing for this license for about 18 months, beginning during the war in response to international clients interested in expanding into Israel. Nuvei's operations in Israel are substantial, with its Tel Aviv division employing around 350 people out of a global staff of approximately 2,600. The company has also made significant acquisitions in Israel, including SafeCharge for $890 million in 2019 and Simplex for $250 million in 2021, with a pending $2.75 billion acquisition of Payoneer.

While Nuvei has obtained a license for payment processing, it has not received authorization to issue bank cards. To conduct operations, the company must connect to the national SHVA payment infrastructure, enabling it to process payments using local bank cards in compliance with regulatory requirements. Nuvei also plans to expand its services to high-tech companies and exporters requiring international payment solutions.