Digital wallets are gaining momentum in Israel
The Rise of Digital Wallets in Israel
The transition to digital wallets in Israel has gained significant momentum in recent years, driven in part by legislation restricting cash usage and the adoption of innovative technologies. This shift has pushed many consumers to seek advanced and convenient digital payment solutions, including digital wallets such as Bit, PayBox, Google Pay, and Apple Pay, which enable quick and secure smartphone transactions. The ongoing integration of this technology into Israel is accompanied by continuous upgrades, offering a user experience tailored to the evolving digital landscape.
Rapid Growth Year After Year
According to the report, there was a 58% increase in digital wallet transaction volume and a 46% rise in the number of transactions compared to 2023. This rapid growth illustrates the increasing popularity of this payment method. In 2024, 38% of total annual transaction volume was conducted via digital wallets, up from just 26% in the previous year. Additionally, online purchases made through digital wallets doubled by 2.5 times compared to the prior year, highlighting their seamless integration into the expanding world of e-commerce.
The Advantages Driving Digital Wallet Adoption
Consumers are opting for digital wallets due to several key benefits:
Convenience and Flexibility: Digital wallets allow consumers to make purchases quickly and easily without carrying physical cards or entering complex codes.
Enhanced Data Security: Advanced technologies such as encryption and biometric authentication ensure secure payment experiences while reducing fraud risks, strengthening consumer trust.
Access to Rewards and Loyalty Programs: Digital wallets provide users with easy access to benefits, discounts, and reward points from loyalty programs. These perks can be redeemed across various sectors, including discounts on popular shopping sites, flight and hotel bookings, cultural experiences, and more—enhancing consumer engagement with brands.
Growth in Online Shopping: Digital wallets align with the needs of the online shopping world, where speed and convenience are crucial.
Impact on Consumer Sectors
The report also highlights significant revenue growth in specific consumer industries. For example, the fashion and footwear sector saw a 65% increase in transaction volume, while the culture and entertainment sector experienced a 55% rise. These figures illustrate how digital payments are transforming the shopping experience across various fields, emphasizing speed, convenience, and an improved customer journey.
A Cultural Shift in Consumer Habits
The rise in digital wallet usage reflects a broader transformation in consumer behavior. Customers are integrating advanced technological solutions into their daily lives, prioritizing innovation, simplicity, and personal convenience. This trend is expected to continue and strengthen in the coming years as more consumers and businesses embrace digital payment technologies.
Roni Karni, Marketing Director at American Express Israel, commented: “The impressive 58% increase in digital wallet usage reflects our customers’ recognition of the added value in choosing this payment method. Beyond convenience and security, there is also the benefit of accumulating reward points, which translate into significant discounts on a wide range of products and services. We are proud to lead innovation in this sector and provide our customers with the best value propositions.”
link
