Nuvei Secures Israeli License, Promising Cheaper Online Shopping
Translated & summarized from Mignews by baba
Canadian fintech Nuvei received an Israeli clearing license to process local payments for international platforms like Shein and Temu. This move is expected to lower transaction costs for merchants and potentially lead to cheaper prices for Israeli consumers. The company's Israeli operations will expand following the acquisition of Pioneer.
The story in 6 lines · by baba
- Nuvei received an Israeli Securities Authority license to process local payments.
- International platforms like Shein and Temu will be able to accept Israeli credit cards.
- The new license is expected to reduce transaction costs for merchants.
- Nuvei anticipates passing savings to consumers, potentially lowering prices.
- Nuvei's Israeli office will expand after the acquisition of Pioneer.
- The process to obtain the license took about 18 months.
Nuvei, a Canadian fintech company, has obtained a clearing license from the Israel Securities Authority, enabling it to expand its operations in the country. The decision to apply for the license was reportedly driven by requests from major retail chains aiming to engage with the Israeli market. The process of securing the permit took approximately 18 months.
With the new license, Nuvei can allow its clients, including international platforms like Shein and Temu, as well as airlines Lufthansa and KLM, to accept local credit cards and process payments in Israeli currency. This is expected to significantly reduce transaction costs for merchants.
Nuvei President Yuval Ziv stated that while foreign sellers previously faced challenges in receiving payments from Israel, the process will now be simpler and more cost-effective. For consumers, the shopping experience will remain unchanged, but businesses will no longer need to treat transactions as international, leading to lower payment processing fees and a reduction in fraud cases. The company anticipates that these savings could be passed on to customers through lower prices.
Nuvei's Israeli office in Tel Aviv currently employs 350 people, part of its global workforce of 2,600. The company's Israeli division is set to grow substantially following its $2.75 billion acquisition of Pioneer. This merger is projected to increase Nuvei's annual revenue to $3 billion and its total employee count to around 5,000.
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