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Israel’s prepaid card industry to post strongest growth in coming years

prepaid-debit-cards2Despite the rising popularity of credit cards in Israel, prepaid card growth is expected to post the strongest growth in coming years, with an expected growth increase of 5.05 percent by 2017.

The card industry in Israel is dominated by three companies, including Isracard, Leumi Card and Visa Cal. Five foreign banks, including HSBC, Barclays, BNP Paribas, State Bank of India and Citigroup, operate in the country.

Between 2008 and last year, Israel’s card industry grew at an annual rate of 6.55 percent, rising from seven million cards in 2008 to reach nine million cards.

Israel’s government widely encourages the inflow of foreign capital, and the country remains open to foreign investment.

Credit cards comprised 60.5 percent of circulating cards in Israel, while debit cards accounted for 29.1 percent and prepaid cards accounted for 10.4 percent. Credit cards circulation in Israel is expected to grow 3.65 percent from six million this year to 6.6 million by 2017.

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