Israel

Israel

General Information

  • Population 9.3m
  • Population 15 + 6.7m
  • Online Population 8.2m
  • Area 22,145 km2
  • Currency ILS
  • GDP 402.6bn USD
  • GDP per Capita 43,689 USD
  • Card-based payments
  • Bank transfers
  • Wallets
[{"label":"Card-based payments","value":"75"},{"label":"Bank transfers","value":"1"},{"label":"Wallets","value":"24"}]
Banked population
  • Israel 93%
  • Middle East & Africa 48%
  • World 67%
Credit card penetration
  • Israel 75%
  • Middle East & Africa 12%
  • World 19%
Internet penetration
  • Israel 88%
  • Middle East & Africa 45%
  • World 62%
Smartphone penetration
  • Israel 80%
  • Middle East & Africa 65%
  • World 70%

Prior to 2020 Israeli e-commerce, for such a technologically driven country, was fairly immature. Israelis prefer to shop in brick-and-mortar shops, being able to touch their purchases. The pandemic changed that and Israelis discovered the benefits to shopping online.

When Israelis did shop online prior to 2020 it tended to be from big international companies such as Amazon. COVID-19 changed that, with Israelis choosing to forgo overseas websites by 37% and instead shop from local e-commerce sites, up by 10%.

Israel is in discussion about removing the tax cap for personal cross-border online shopping. At present Israelis can make individual purchases up to 75 $US without incurring tax. This would help local e-merchants while making international purchases more expensive.

Israel’s economy is set to grow by 5% in 2021 according to the IMF, and 4.3% in 2022. Meanwhile inflation is set to remain reasonably steady with a slight rise of 0.3% in 2021 and 0.6 % in 2022.

Future e-commerce trends (2021-2025)

E-Commerce market size forecast ($US billion)
2021 12.5
2022 14.1
2023 16.3
2024 18.7
E-Commerce spending per capita ($US)
2021 1332
2022 1478
2023 1684
2024 1908
E-Commerce spending as % of GDP
2021 2.9
2022 3.1
2023 3.4
2024 3.7

Israel

The E-Commerce Market

Top e-commerce segments 2019 | 2020

  1. Airlines & Hotels: NA | 23%
  2. Health & Beauty: NA | 16%
  3. Electrical Goods: NA | 15%
  4. Food & drink: NA | 10%
  5. Homeware & Furniture: NA | 7%

Cross-border e-commerce

  1. Cross-border proportion of total e-commerce – NA
  2. Value of cross-border e-commerce ($US billion) – NA
  3. % of online shoppers who have shopped cross-border – 82%

Top 3 cross-border shopping origin markets

  1. China
  2. UK
  3. USA
E-commerce % of total retail
  • Israel 9%
  • Middle East & Africa 3.0%
  • World 20%
E-commerce completed on a mobile device
  • Israel 42%
  • Middle East & Africa 53%
  • World 53%

The Credit Card Split

  • Visa
  • Mastercard
  • American Express
  • Local Schemes
  • other
[{"label":"Visa","value":"44"},{"label":"Mastercard","value":"28"},{"label":"American Express","value":"6"},{"label":"Local Schemes","value":"17"},{"label":"other","value":"5"}]
  • E-commerce market size ($US billion) 11.3bn USD
  • E-Commerce spending per capita ($US) 1,231 USD
  • E-commerce spending as % of GDP 2.7%

The information on our Insights pages has been compiled by us in cooperation with Datamatics and Wright & Brown. The data shown is partially owned by us and partially owned by GlobalData. © 2021 by PPRO Financial Ltd. No data and information can be used for any further publication without the explicit approval of PPRO.

Israel

Local Payment Methods

BitPay Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Hyperwallet Type Bank transfer, Gift card, Prepaid voucher Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High PayPal Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Paysera Wallet Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Skrill Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Allied Wallet Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High UnionPay Type Local payment card Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Apple Pay Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Boku Type Carrier billing Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High DaoPay Type Carrier billing Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Google Pay Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Masterpass Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Mobiamo Type Carrier billing Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High Razer Gold Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High SWIFT Type Bank transfer Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance High WebMoney Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 1 Market relevance High Isracard Type Local payment card Regions Middle East & Africa Market relevance Medium Secure Remote Commerce (SRC) Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Market relevance Medium Boloro Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 G2A Pay Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 NETELLER Type Wallet Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3 Splitit Type Instalments Regions Asia Pacific, Eastern Europe & the CIS, Middle East & Africa + 3

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