Israel led Europe in per capita credit card use in 2002. According to figures compiled by Europay International, which owns MasterCard, per card turnover in Israel averaged €4,622, compared with €4,544 in France, €2,993 in Britain, and only €535 in Spain.
Isracard general manager Haim Krupsky presented additional figures comparing Israeli and European credit card use. He said 75% of the adult population in Israel used a credit card, and there were 1.2-1.3 credit cards per capita in Israel.
Israel also led Europe in 2001 in credit card transactions, although it fell to second place in 2002. Israelis average 11 credit card transactions per month.
Krupsky said that credit cards had been used for only a third of payments in the early 1990s, and checks for two thirds, but this ratio has now been reversed. 64.5% of payments are now made through credit card, while only 35.5% are made by check.
Krupsky listed several unique features that have made credit cards the leading means of payment in Israel. Most Israeli businesses accept credit cards, while Israel has a highly developed payment system, which most of Europe lacks. The credit card payment system has replaced the culture of postdated checks in Israel, thereby boosting credit card usage.
Another field where Israel leads is in credit company plans designed to enhance customer loyalty. These plans include buyers clubs, which provide discounts. More sectors are being added to the credit card market, and the use of credit cards is being extended to more types of transactions, such as payments to government institutions, including the courts, the Ministry of Transport, and the Ministry of the Interior.
In addition, companies have initiated a number of ideas, such as paying rent by credit card, which was launched this year by Isracard. These initiatives are designed to expand the currently saturated market, which has been growing by 1% per year.
Revenue in the Israeli credit card market totaled NIS 93 billion last year, including incoming and outgoing tourism. There are three concerns in the market: Isracard (the largest), ICC-Cal, and Leumi Card, which was launched 18 months ago.
Published by Globes [online] - www.globes.co.il - on May 14, 2003