The Bank of Israel has granted UK fintech Revolut access to its payment rail as it becomes the second global fintech to receive an identification code.
The issuance of the identification code is possible due to Revolut operating along the “international outline” published by the Bank of Israel. This standard grants overseas firms with licences from a recognised country access to the Bank’s payments system, alongside meeting additional conditions.
Revolut has become the second global fintech to receive a code, with the company choosing to operate in Israel as a participant in a controlled payment system.
These identification codes are given to participants in the Israeli payments system, which is comprised of two characters. This code enables fintech companies to allocate payment account numbers to customers and allows other participants to identify them.
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.”
Israel has attracted the attention of many fintech companies so far this year, most recently due to its advances with Central Bank Digital Currencies (CBDC). Last month, the Bank became the latest national bank to probe CBDCs, selecting 14 teams to participate in its ‘Digital Shektel Challenge’.