Cal Launches Talks to Acquire Payment Firm Grow for 200 Million Shekels
Cal, a leading Israeli credit card company, is negotiating to acquire the payment processing firm Grow (formerly known as Meshulam) for approximately 200 million shekels. This potential acquisition marks a significant strategic move by Cal's CEO Yafit Geryani, following the loss of cooperation with El Al's frequent flyer program and the launch of Cal's own credit card.
Market insiders consider the acquisition price high and note that Grow's technology business is reportedly not yet profitable. The deal aims to strengthen Cal's position in payment processing and partnerships with small businesses, potentially signaling Cal's future expansion into banking services. Grow describes itself as offering "new banking for people with businesses," providing integrated account and payment solutions.
Cal is currently undergoing a sale process valued at 4 billion shekels to the Union Group and Harel Insurance. If the Grow deal completes, Cal could enter Israel's increasingly competitive banking sector, joining rivals like Isracard, which is acquiring the digital bank ESH to become Isracard Bank. Grow, led by CEO Hagai Altersko, was founded about 20 years ago and rebranded in 2023 to emphasize its fintech and digital banking services for businesses.
Cal's recent business challenges include losing the right to issue credit cards for El Al's strong customer club to competitor Isracard. In response, Cal quickly partnered with Issta to launch Playol, a competing airline loyalty club, accompanied by aggressive marketing and some consumer deception allegations. Grow declined to comment on profitability concerns but noted that prices do not reflect the company's leading market position.
This acquisition could provide Cal with a foothold in banking-related financial services, expanding its ecosystem beyond credit cards and payment processing.
