Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL) is entering the financial services market with Citigroup Inc. (NYSE: C) and Bank Hapoalim (TASE: POLI) credit card subsidiary Isracard Ltd.
Cellcom and Citibank will launch a service to allow money remittance from Israel abroad by customers of all mobile carriers in Israel, through Citi's platform and worldwide distribution channels. Later, Cellcom will offer micro-payment services through which subscribers can make payments via their mobile phones.
Cellcom CEO Amos Shapira presented figures which indicate that global remittances, including to and from Israel, are expected to grow by billions of dollars over the coming years. He said that Cellcom saw a potential growth market and decided to enter it.
Although Cellcom plans to launch the service by the end of 2010, it made the announcement today as Citibank Global Transaction Services CEO Francesco Vanni d'Archirafi is in Israel.
Shapira said, "The mobile phone is the world's most common computerized retail point of sale. It is this added value that Citi and the company intend to bring to the financial services market."
Cellcom VP marketing Adi Cohen added that international sources estimate the remittances market from Israel at NIS 9 billion for private individuals alone.
In the deal with Isracard, Isracard will issue mobile wallets to Cellcom subscribers. The service, which will be launched at the end of the year, will enable cash withdrawals and payments to businesses.
Cellcom's share opened in New York today at $25.12, giving a market cap of $2.48 billion. The share price fell 1.8% on the TASE today to NIS 97.87.
Published by Globes [online], Israel business news - www.globes-online.com - on July 7, 2010
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