Financial Crime World

Israel Grants Authority to Determine Additional Bodies for Payment Services

TEL AVIV, Israel - In a move aimed at promoting competition and innovation in the payment services sector, the Israeli government has granted the Commissioner of Competition the authority to determine additional bodies that can provide payment services.

New Law to Come into Effect in One Year’s Time

The new law will allow the Commissioner of Competition to designate other entities as payment service providers, joining banks, credit card companies, and e-wallets. This is expected to promote competition and innovation in the payment services sector by allowing new players to enter the market.

Promoting Competition and Innovation

“This law will enable more companies to participate in the payment services market, which will benefit consumers and promote economic growth,” said Adv. Anat Even-Chen, partner and leader of Barnea Jaffa Lande’s Regulation team. “We are seeing a significant shift in the way payment services are provided in Israel. This law will help businesses adapt to these changes and ensure compliance with the new regulations.”

Key Provisions

  • Allows the Commissioner of Competition to designate additional bodies as payment service providers
  • Prohibits unreasonable refusal to participate in payment systems
  • Promotes open banking services
  • Eliminates the need for an issuer license
  • Includes transitional provisions allowing companies already engaged in payment services to continue their activities while applying for new licenses

Assistance from Barnea Jaffa Lande’s Regulation Department

Barnea Jaffa Lande’s Regulation Department is well-equipped to help businesses from all sectors prepare for the enforcement phase of the law, as well as with other issues related to payment services.

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