Bank of Israel Allocates an Identification Code to an International Entity: the Nonbank Payment Services Provider Revolut Ltd.

The Bank of Israel has announced the issuance of an identification code to a second global fintech company that has chosen to operate in Israel as a participant in a controlled payment system – Revolut Ltd. The company is operating along the “international outline” published by the Bank of Israel[1], which enables access to the payment systems based on a foreign license from a recognized country, as well as on meeting additional conditions. Participants in the Israeli payment systems are identified using a unique identification code (formerly known as a “bank code”) that is comprised of two characters. The identification code enables fintech companies to allocate payment account numbers (parallel to a bank current account) to their customers, and obligates other payment system participants to identify them in a unique way. Oded Salomy, Director of the Bank of Israel’s Payment and Settlement Systems Department, said: “The steps that the Bank of Israel has led have created opportunities for global fintech firms and firms from various fields to operate in the payments field in Israel, with regulatory guidance throughout the access process. These steps will advance competition in the financial system, and will contribute to improvement of service and lowering of costs. The Bank of Israel will continue developing the Israeli payments market, and working toward opening access to the controlled payment systems for nonbank participants.”