Israeli Government Introduces New Regulations to Enhance Payment Services
TEL AVIV, Israel - The Israeli government has introduced new regulations aimed at enhancing payment services in the country. The Regulation of Payment Services Law, which was published on [date], aims to promote competition and innovation in the payment industry.
Background
The new law is designed to regulate payment services in Israel, promoting a fair and transparent market for both consumers and businesses. The regulation will apply to all payment service providers operating in Israel, including foreign companies that want to enter the market.
Key Provisions
- Licensing Requirements: Foreign payment service providers will be required to obtain a license from the Israel Securities Authority (ISA) before operating in Israel.
- Additional Services: Payment service providers will be allowed to offer additional services, such as ATM services and currency conversion, without needing an additional license. However, they will need to obtain approval from the regulatory authority for basic initiation services.
- Unreasonable Refusal: Unreasonable refusal to participate in controlled payment systems is prohibited.
- Access to Payment Accounts: Payment service providers must provide access to a payer’s payment account to providers of basic initiation services.
Transitional Provisions
The law includes several transitional provisions to ease the transition for corporations engaging in financial services. For example:
- Companies that were exempt from licensing requirements prior to the inception date may continue their activity if they file a license application within three months of the inception date and receive acknowledgement of the filing from the ISA.
Impact
The new regulations are expected to promote competition and innovation in Israel’s payment services industry, ultimately benefiting consumers. The law aims to ensure that payment service providers operate in a fair and transparent manner, providing customers with better services and greater choice.
Conclusion
The Regulation of Payment Services Law is a significant development for Israel’s financial sector, aimed at promoting competition, innovation, and financial stability. The new regulations will require foreign payment service providers to obtain a license before operating in the country, while also allowing local providers to offer additional services without needing an additional license.
Key Takeaways:
- Foreign payment service providers must obtain a license from the ISA before operating in Israel.
- Payment service providers can offer additional services without needing an additional license.
- Unreasonable refusal to participate in controlled payment systems is prohibited.
- Payment service providers must provide access to a payer’s payment account to providers of basic initiation services.