The Bank of Israel announced it will expand the identification code required for banking corporations and nonbank entities to connect to Israel’s payment systems from two digits to three digits. The change is intended to increase the number of entities that can connect and operate as direct participants. Connection to the payment systems is conditioned on the connecting entity being identified by an identification code. Expanding the format is designed to enable more participants, including domestic and international fintech firms, to participate directly alongside banks and provide a wider range of financial services in Israel. The Bank of Israel said the decision followed a prolonged examination of alternatives and consultations with financial system participants, regulators, a broad sample of entities, international institutions, technology solution providers, and corporate businesses. Implementation schedules for the expanded identification code will be published during 2026.
Bank of Israel 2026-01-13
Bank of Israel expands payment system participant identification codes from two to three digits to open access for nonbanks
The Bank of Israel will expand the identification code for banking corporations and nonbank entities connecting to Israel’s payment systems from two digits to three, allowing more participants, including fintech firms, to operate as direct participants. Implementation schedules will be published in 2026.