Another step to reduce the use of cash?
This coming June, an amendment to the Wage Protection Law will come into effect that will allow salary deposits through payment applications such as Bit and Paybox, and through payment companies that operate a digital wallet.
That is, the salary can be transferred either to the bank account or to a payment service account.
This will increase the use of those applications or payment companies, and the public will be able to choose where they manage their current account - in the bank or in the payment application.
Poster for "Digital bank? The younger generation is in no hurry to abandon the existing banks; cash will not disappear"
The Bank of Israel recently analyzed in depth the preferences for using the various payment options.
According to the survey, out of the various payment methods, the payment apps are already ranked in third place as popular and common.
Other significant conclusions that emerge from the survey:
The first - almost half of the payments made in payment applications are intended for payment for services and products from businesses (P2B - Person to Business).
The second - although the payment applet is seen as one of the most convenient and fastest means of payment, the transaction amounts through it are significantly low.
The main reason for this, among others, is that the payment in the application is usually made using a credit card, and not from a balance saved in the application or in an electronic wallet.
Paybox is a first step in Israel.
(Payment by cell phone - illustration), photo: GettyImages
The third - the cash is still here.
Despite all the measures taken in recent years, including the law "reducing the use of cash", a large part of the population still pays in cash.
The possibility of depositing salary and making transfers of large amounts through non-banking means may encourage populations that do not maintain a bank account to prefer the use of payment apps and payment wallets over the use of cash.
The writer is a financial regulation partner at the Gornicki & Co.
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