Since 1995, Isracard has enjoyed an exclusive franchise for issuing American Express cards in Israel.
Isracard and Leumi Card jostle over Amex Isracrad, owned by Bank Hapoalim, and Leumi Card, owned by Bank Leumi, are rivals for the American Express franchise in Israel. American Express (Amex) is one of the world’s strongest non-bank credit brands. Isracard has held an exclusive franchise for issuing American Express cards in Israel since 1995. The agreement between American Express and Isracard is due to expire at the end of 2009, and Leumi Card has expressed interest in obtaining the franchise.
American Express is currently in talks with both Isracard and Leumi Card. It is believed that American Express will not wish to lose distribution by Isracard, the largest credit card company in Israel, and would prefer to expand the franchise to include both companies, while imposing restrictions to prevent the brand from being damaged. Although until a few years ago American Express would give a franchise for issuing its cards to only one company in each country, this policy has since changed, and the experience gained, mainly in Australia, has proved the change successful.
Leumi Card sees obtaining the American Express franchise as a strategic move to upgrade its business and enable it to build an up-market brand and improve its competitiveness.
Published by Globes [online], Israel business news - www.globes.co.il - on August 9, 2009
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