Bank of Israel hails milestone in move to ‘smart payments’

The Bank of Israel has welcomed an important milestone in its effort to promote “smart payments”, as more than half of payment terminals in Israel now support such transactions.

The central bank has mandated that payments firms gradually phase out magnetic-stripe payments in favour of ‘EMV’ or chip-based payments. As of the end of January, 54% of payment terminals accepted EMV payments.

EMV opens up a wider range of payment options, including contactless card payments or the use of ‘wearable’ payment devices such as smart watches.

In a statement, Bank of Israel payments chief Oded Salomy said the wider availability of terminals was allowing the development of more advanced forms of payment, including digital wallets. “We already see several digital wallets that have begun to operate in Israel in recent months, and a number of additional entities, domestic and international, are expected to enter this field in Israel this year,” he said.

The next milestone is set for July 31, when the acquiring of transactions by all businesses will be expected to meet the EMV standard.