Another step in opening access to the payments systems for nonbank entities, and increasing competition in the financial system: The policy and process of allocating identification codes to payment service providers has been completed.

Further to the Bank of Israel’s announcement from August 7, 2019[1] regarding the allocation of an identification code to all payment service providers in the payments system, in recent months, the payments system has completed the process of vacating identification codes (bank codes) that are no longer in use to serve payment service providers and their customers in the payments systems.

 

During this period, the Bank of Israel has defined the policy and conditions for allocating the identification codes, as follows:

 

  • An entity dealing with the provision of payment services, which holds a license or a license exemption, which enables the provision of payment services.
  • ​​The code is required for participation in a controlled payments system or a payments system with a direct interface to a controlled payments system that requires the use of an identification code.

 

The process of allocating an identification code includes, among other things:

 

  • Contacting the system operator with a request to participate in the payments system.
  •  Contacting the Payment Systems Oversight Unit at the Bank of Israel with a request to allocate an identification code.

 

The process of allocating an identification code enables entities to obtain a code at a relatively early stage through a process that will ensure that there is as high a likelihood as possible that the entity will be connected to the payments system and will provide payment services to its customers.

 

The Bank of Israel calls upon entities that are interested in operating in the payments systems to first examine whether they meet the conditions for allocating an identification code, and act in accordance with the code allocation process.

 

For further details regarding the code allocation process, please visit:

https://www.boi.org.il/en/PaymentSystem/Pages/PSPcode.aspx