Digital Wallets Surge to 47% in Israel as Bank of Israel Warns on Cash Access
Weekly digital wallet usage in Israel surged to 47% in 2025 as cash usage dropped to 48%. The Bank of Israel warns that declining cash infrastructure could limit accessibility and raise costs.
Digital wallets have surged in popularity across Israel, with 47% of citizens using them at least once a week in 2025, a dramatic increase from just 5% in 2019. According to a new review published by the Currency Department at the Bank of Israel, weekly cash usage plummeted from approximately 80% to around 48% over the same period, signaling a major shift in consumer payment habits.
The Shift Away From Cash and Persistent Demand
While services like Apple Pay and Google Wallet have largely displaced physical credit cards for 50% of users and cash for 26%, physical currency remains in circulation. The total volume of banknotes and coins held by the public and bank vaults stands at roughly 134.7 billion shekels. Although this figure continues to grow, the annual growth rate has slowed to about 2% for 2024 and 2025, down from roughly 7% between 2021 and 2023. Furthermore, approximately 70% of Israelis express a desire to continue using cash in the future, a metric that has remained remarkably stable across successive surveys.
"The Bank of Israel is concerned that a sustained decline in routine cash usage could reduce infrastructure, limit accessibility, and drive up costs for consumers who rely on physical currency."
Demographics and Bank of Israel Concerns
Cash reliance varies significantly across different sectors of Israeli society. Data indicates that 63% of transactions under 10 shekels are still settled in cash, compared to only 25% for transactions exceeding 500 shekels. In Arab communities, 75% of transaction volume is conducted in cash, while low socioeconomic municipalities record 57%, compared to just 14% in high-ranking socioeconomic areas. Among the Haredi population, cash accounts for 29% of transaction value, versus 15% in the non-Haredi Jewish sector. Citizens cite budgeting control, liquidity, and emergency backup as primary reasons for maintaining cash reserves, particularly amid ongoing security tensions since the outbreak of the war.