Starting next year: Payment apps like Bit and PayBox can charge fees

Starting next year, payment apps such as Bit and PayBox will be allowed to charge fees to customers whose annual usage exceeds NIS 25,000 (about NIS 2,000 per month), as announced by the Bank of Israel. This change could significantly affect the revenue of many small businesses that depend on these apps for collecting payments.

According to the Bank of Israel's announcement, the bank supervision department released a draft update to fee regulations for public comment, including a section on payment apps. This update aims to detail the conditions and restrictions on charging fees to customers using these applications.

The bank explains that the approval to charge fees is due to the costs associated with providing these services. Additionally, the bank stated that “this change coincides with the implementation of the Payment Services and Payment Initiation Law, which facilitates connectivity between payment apps and encourages the entry of new players into the market. Their entry depends on their business model and revenue from providing these services. This approach will continue to promote technological innovation and the development of financial services for customers.”

The Bank of Israel notes that "preliminary analyses conducted by the bank supervision department indicate that currently, the vast majority of customers do not reach this threshold of NIS 25,000 annually and will continue to receive the service at no cost. A banking corporation wishing to update the annual activity threshold can do so only after two years from the date these services were added to the list of permitted fees and will require the supervisor's approval."