Cal Credit Rebounds by Winning Major New State Employee Loyalty Club from Isracard

Cal Credit is recovering from a significant setback in the Israeli credit card market after losing El Al's frequent flyer club to Isracard, which took with it a large customer base. In a competitive process conducted by the Company for the Economic and Cultural Activities of State Employees, Cal Credit was selected to replace Isracard as the credit card issuer for the "Tov+" club, one of the largest consumer clubs for state employees and retirees. This move marks a strategic gain for Cal Credit, allowing it to regain footing by acquiring access to a broad population of cardholders and strengthening its customer relationships.

The "Tov+" club includes state employees, retirees, and affiliated bodies, and the new agreement will feature a system consolidating meal budgets and club benefits onto a single card. This development comes amid an ongoing rivalry between Cal Credit and Isracard, which has intensified in recent years. Isracard had previously strengthened its position by acquiring El Al's frequent flyer club, while Cal Credit is now aiming to bolster its market share by securing other large loyalty clubs.

For both companies, these loyalty clubs represent strategic assets in the competitive credit card market, offering not only direct revenue but also opportunities to attract and retain customers. The battle over these clubs reflects a broader contest for control over Israel's largest customer bases and direct engagement with hundreds of thousands of cardholders.