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The Bank of Israel announces that, as part of the ATM Committee’s deliberations, a framework has been approved for contactless cash withdrawals from automated teller machines (ATMs).[1] As part of the implementation of this framework, ATMs will gradually be upgraded to enable contactless cash withdrawals using payment cards and digital wallets. This move constitutes another important step in advancing efficiency and innovation in Israel’s payments array, and is expected to improve the user experience and broaden public access to the service.
At present, cash withdrawals from ATMs are carried out by inserting a payment card into the machine’s card reader. Following the implementation of the new framework, withdrawals will also be possible on a contactless basis and through digital wallets.
According to the framework that has been adopted, implementation will take place in three stages:
In the first stage, through July 2027, contactless withdrawals will be enabled at ATMs that support the required technology, at the bank where the customer’s account is held. Subsequently, through December 2027, interoperable contactless withdrawals will be enabled for all cardholders at any ATM that supports the required technology, regardless of the bank at which the customer’s account is held.
In the second stage, beginning in June 2027, no new ATMs that do not support contactless cash withdrawals will be installed.
In the third stage, by the end of 2030, all ATMs will be upgraded to enable contactless cash withdrawals.
Ofer Golan, Director of the Bank of Israel’s Payment and Settlement Systems Department, said: “This is another step forward and a significant milestone in strengthening efficiency and innovation in the payments array. Contactless withdrawals are expected to improve the level of service provided to the public and offer a more advanced, convenient, and accessible user experience. This move reflects the Bank of Israel’s commitment to the continuous improvement of Israel’s payments array and to adapting it to an advanced technological environment.”
[1] The ATM Committee is a platform that brings together all relevant participants in the cash withdrawal market. It convenes to discuss professional and technological issues relating to operating methods and the rules governing interactions among the various participants in the cash withdrawal ecosystem, with the aim of enhancing efficiency and competition while maintaining stability.