Mobile network operator Pelephone is to launch an NFC digital wallet in Israel, initially using contactless stickers, in partnership with credit card companies Leumi Card and Isracard. The service is set to go live in a few weeks time.
Customers wishing to use the service will undergo a credit check and, once approved, will receive an NFC sticker to attach to their mobile phone that will work in the same way as a contactless payment card at locations across Israel and overseas.
A digital wallet application is also to be launched, to enable customers to manage their expenses and receive customized coupons. Later, the companies will also add support for NFC phones.
When making payments using the sticker, the transaction amount is deducted from the customer’s credit card account. Those who sign up to use the wallet will not be required to pay credit card fees for one year.
Gill Sharon, CEO of Pelephone, said: “I predict that within three years we will have half a million users. In the future, this area will be another growth engine for the company. In a few years, this payment method will become the most convenient and effective and will replace credit cards.”