The Bank of Israel is continuing to advance instant payments in Israel, and has instructed participants to prepare for receiving payment requests (R2P) by the end of 2023
Bank of Israel Governor Prof. Amir Yaron said, “The development of the payments market in Israel is a main objective among the goals we have set as part of the Bank of Israel’s strategic plan. Our policy is aimed at creating an advanced payments market that will enable participants to increase the variety of options available to consumers and merchants in making payments, and to position the Israeli payments market in line with the leading countries. This measure joins a long series of steps taken with the aim of improving consumer well-being and contributing to the encouragement and development of competition and innovation in the financial system.”
. For this reason, the Bank of Israel is advancing a series of measures to examine the changes necessary in the market in order to remove barriers and implement instant payments among the Israeli public.”
Instant payments is a means of payment that enables the transfer of money from one account to another, 24 hours a day, seven days a week, where the money is immediately available to the beneficiary. For instance, an instant credit will enable the beneficiary to immediately use the amount credited to his account, similar to payment using cash, as opposed to other means of payment that are common in Israel (checks, bank transfers, deferred payment cards, prepaid cards, and others), where the money is not immediately available to the beneficiary.
A request to pay (R2P) will enable the beneficiary to digitally request payment from a paying customer in respect of goods or services, with the payment being either physical (such as at a merchant’s premises) or online (on a website) in a simple, easy, and convenient way that will enable immediate receipt of the payment in the beneficiary’s account (instant credit). The implementation of the instruction, in parallel with other measures being advanced by the bank of Israel, will expand the types of instant payment transaction to transactions that involve businesses and the government as well, so that instant payments will not be restricted only to transactions between individuals as is the case today.
The Bank of Israel calls on entities in the payments field who would like to receive information and hold discussions on the matter of instant payments to contact us by email at email@example.com