Digital wallet Google Pay will begin operations in Israel in the first week of December, sources close to the matter have told "Globes." Google Pay has informed the banks and credit card companies of the date of the start of operations so that they can ready for the battle to become the default credit card of the tech giant - in other words the card with which most purchases will be made.
Google Pay had initially planned to launch in Israel last summer but eventually postponed the start of operations. The entry of Google Pay into the Israeli market is expected to have a huge effect on the digital wallet market in Israel such as Bank Hapoalim's Bit and Bank Leumi's Pepper.
The reason for Google Pay's anticipated major impact is that it works on the Android operating system of the mobile devices held by more than 70% of Israelis. iPhone users can only use the Apple Pay digital wallet. Even though less than 30% of Israelis own iPhones, the entry of Apple Pay saw use of digital wallets in Israel soar by 800%. Next month will reveal whether Google Pay creates the same effect for Android users.
Unlike Apple Pay, Google is not expected to operate its digital wallet in Israel through a designated app. Google is mulling several options through existing payment applications.
Google said, "We do not respond to rumors and speculation."
Published by Globes, Israel business news - en.globes.co.il - on November 10, 2021.
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