Israels Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

Synopsis
The report provides top-level market analysis, information and insights into Israel's cards and payments industry, including:
Current and forecast values for each category of Israel's cards and payments industry, including debit cards, credit cards and prepaid cards
Comprehensive analysis of the industry's market attractiveness and future growth areas
Analysis of various market drivers and regulations governing Israel's cards and payments industry
Detailed analysis of the marketing strategies adopted for selling debit, credit and prepaid cards used by banks and other institutions in the market
Comprehensive analysis of consumer attitudes and buying preferences for cards
The competitive landscape of Israel's cards and payments industry 

Summary
The global financial crisis produced a brief period of recession in Israel, however, the economy quickly recovered due to the country's fiscal policies and regulations, supported by a robust banking sector, proved optimistic for the cards and payments industry. Consequently, the collective share of electronic payment cards instruments including credit transfers, direct debit and card payments increased during the review period (2009-2013) from 78.6% in 2009 to 81.4% in 2013. The country's economic growth is anticipated to provide further impetus for the cards and payments industry over the forecast period (2014-2018).
The Israeli payment cards instrument grew in value and volume terms during the review period. In terms of transaction value, the payment cards instrument grew from ILS242.6 billion (US$61.7 billion) in 2009 to ILS312 billion (US$86.2 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 6.49% and is anticipated to post a CAGR of 3.93%, over the forecast period, to reach to ILS383.2 billion (US$105.7 billion) in 2018. Similarly, in terms of the number of cards in circulation, the payment cards instrument grew from 7.4 million in 2009 to 9 million in 2013, at a CAGR of 4.97% and is anticipated to post a CAGR of 2.99% over the forecast period, to reach 10.5 million in 2018. 
Many factors supported review-period growth, such as increases in per capita income and payment infrastructure modernization. As banking customers become more sophisticated, banks are differentiating their product offerings and subsequently card customization for specific customer groups such as high income individuals, students and the young. Banks are making use of digital channels such as online, mobile and social media to promote their products and services.
Two key trends in Israel's credit cards market are the issuance of non-bank credit cards by credit card companies ? usually linked to customer clubs ? and the expansion of the range of services offered by credit card companies in areas such as credit and financing. This includes the issuance of revolving credit cards which allow cardholders to determine debit amounts and payment dates according to their need and ability to pay.
In terms of number of cards in circulation, the prepaid card market accounted for the smallest payment cards instrument share of 6.8% in 2013; a share that is anticipated to decrease to reach 5.5% in 2018. This is mainly due to of lack of obtainability of prepaid card variants. Currently, prepaid card variants in the form of gift cards are widely available. This offers abundant growth opportunities for banks and card issuers.
In terms of number of cards in circulation all card markets increased with the exception of the prepaid cards market. However, the prepaid cards market registered the highest review-period CAGR of 14.71%, in terms of transaction value, in comparison to credit and debit cards, which recorded respective CAGRs of 6.83% and 5.62%. The prepaid cards market increased from ILS910.1 million (US$231.4) in 2009 to ILS1.6 billion (US$435.3) in 2013 and has the potential to reach ILS2.3 billion (US$632.1 million) by the end of 2018, representative of a forecast-period CAGR of 7.08%. 
Scope
 This report provides a comprehensive analysis of Israel's cards and payments industry.
It provides current values for Israel's cards and payments industry for 2013, and forecast figures for 2018.
It details the different economic, infrastructural and business drivers affecting Israel's cards and payments industry.
It outlines the current regulatory framework in the industry.
It details the marketing strategies used by various banks and other institutions. 
It profiles the major banks in Israel's cards and payments industry. 
Reason To Buy
 Make strategic business decisions using top-level historic and forecast market data related to Israel's cards and payments industry and each market within it.
Understand the key market trends and growth opportunities within Israel's cards and payments industry.
Assess the competitive dynamics in Israel's cards and payments industry.
Gain insights in to the marketing strategies used for selling various card types in Israel.
Gain insights into key regulations governing Israel's cards and payments industry. 
Key Highlights
The Israeli payment cards instrument grew in value and volume terms during the review period. In terms of transaction value, the payment cards instrument grew from ILS242.6 billion (US$61.7 billion) in 2009 to ILS312 billion (US$86.2 billion) in 2013, at a review-period compound annual growth rate (CAGR) of 6.49% and is anticipated to post a CAGR of 3.93%, over the forecast period, to reach to ILS383.2 billion (US$105.7 billion) in 2018. Similarly, in terms of the number of cards in circulation, the payment cards instrument grew from 7.4 million in 2009 to 9 million in 2013, at a CAGR of 4.97% and is anticipated to post a CAGR of 2.99% over the forecast period, to reach 10.5 million in 2018.
Two key trends in Israel's credit cards market are the issuance of non-bank credit cards by credit card companies ? usually linked to customer clubs ? and the expansion of the range of services offered by credit card companies in areas such as credit and financing. This includes the issuance of revolving credit cards which allow cardholders to determine debit amounts and payment dates according to their need and ability to pay.
In terms of number of cards in circulation, the prepaid card market accounted for the smallest payment cards instrument share of 6.8% in 2013; a share that is anticipated to decrease to reach 5.5% in 2018. This is mainly due to of lack of obtainability of prepaid card variants. Currently, prepaid card variants in the form of gift cards are widely available. This offers abundant growth opportunities for banks and card issuers.
In terms of number of cards in circulation all card markets increased with the exception of the prepaid cards market. However, the prepaid cards market registered the highest review-period CAGR of 14.71%, in terms of transaction value, in comparison to credit and debit cards, which recorded respective CAGRs of 6.83% and 5.62%. The prepaid cards market increased from ILS910.1 million (US$231.4) in 2009 to ILS1.6 billion (US$435.3) in 2013 and has the potential to reach ILS2.3 billion (US$632.1 million) by the end of 2018, representative of a forecast-period CAGR of 7.08%.
Mobile payments are an emerging trend in Israel and new systems allow merchants to process credit and debit payments via smartphones and tablets. In October 2012, Isracard entered into an agreement with VeriFone Systems, a US-based provider of secure mobile payment solutions, to promote VeriFone SAIL encrypted card readers for iOS and Android devices. Isracard's business customers will download an app and receive a card reader free of charge to support the service. Mobile payment systems are expected to grow strongly with the rising number of smartphone users in Israel.
Growing competition among banks to retain existing customers and add new ones prompted the introduction of new products and service offerings. In 2012, ICC Cal launched NFC technology in association with Israeli cellular provider, Cellcom. Likewise, in 2010, Israeli mobile commerce, payments and marketing specialist DigiMo Group announced that it is extending support for NFC phones and stickers to its barcode-based mobile payments system.