Breaking· Economy· Updated
Digital Wallets Overtake Cash in Israel, Bank of Israel Report Shows
A new report by the Bank of Israel reveals a significant decline in cash usage among Israelis, driven by the rapid adoption of digital wallets. Weekly cash usage has fallen from approximately 80% in 2019 to under 50% recently, and is projected to reach 48% by 2025. In contrast, digital wallet usage is projected to surge to 47% by 2025, up from just 5% in 2019.
4 newsrooms · 1 language · since
What happened
- 01Weekly cash usage in Israel has fallen from 80% in 2019 to under 50% recently, and is projected to reach 48% by 2025.
- 02Digital wallet usage in Israel is projected to reach 47% by 2025, up from just 5% in 2019.
- 03Cash still accounts for 43% of daily transactions and 32% of their value in Israel.
- 04In the Arab community, cash represents 75% of transaction value, compared to 29% in the Haredi community and 15% in the non-Haredi Jewish community.
- 05Around 70% of Israelis still want to use cash in the future, citing its importance as a backup during emergencies.
- 06The Bank of Israel warns that declining cash use could lead to reduced accessibility and increased transaction costs.
- 07Yoram Cohen, Director General of the Bank of Israel, committed to ensuring public access to cash alongside digital payment options.
Despite this decline, cash remains a vital component of the Israeli economy, accounting for 43% of daily transactions and 32% of their value. Cash usage is particularly high in the Arab community, where it represents 75% of transaction value, compared to 29% in the Haredi community and 15% in the non-Haredi Jewish community. Lower socioeconomic groups and small businesses also rely heavily on cash.
The Bank of Israel warns that diminishing cash use could lead to reduced accessibility and increased costs for those who continue to rely on physical currency. However, around 70% of Israelis still want to use cash in the future, viewing it as a reliable backup during emergencies like power outages, communication disruptions, or cyberattacks. Yoram Cohen, Director General of the Bank of Israel, stated that the bank is committed to ensuring cash accessibility alongside digital options.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: Bizportal. Read Bizportal’s originalThe coverage
4 newsrooms on this story
Who covered it
- LeftNone
- Centre1
- RightNone
- Haredi1
- ArabNone
- Other2
Not in the Right or Arab press
