The Bank of Israel is following suit with Europe and the US in credit cards. David Zaken, Supervisor of Banks has ordered the credit card companies and banks to switch customer credit cards in line with the EMV security standard within the next 3.5 years.
It is reported that the switch to smarter credit cards will involve a number of complex changes. These include the issue of credit cards, through to replacing or amending ATMs and terminals at businesses to accommodate the change in the clearing system. As a result, the move is likely to cost tens of millions of dollars in infrastructure change.
Nevertheless, the Bank of Israel states that the switch is intended to significantly reduce credit card fraud. It will also remove current restrictions prohibiting usage of Israeli credit cards in other countries that have switched to smart cards. With fraudulent activity falling in countries that have already made the switch to EMV, criminals have turned their efforts to countries still using magnetic strip-based credit cards.
As the demand for immediate payments implementation grows in the United States, Iliad Solutions have identified one of the largest risks to face the payments industry over the next few years.
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.