TITLE: Israel's Central Bank Announces Contactless Cash Withdrawal Framework for Automated Teller Machines
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On May 27, 2026, the Bank of Israel (BOI) announced a framework for implementing contactless cash withdrawals from automated teller machines (ATMs) using payment cards and digital wallets. The BOI's ATM Committee established this initiative to enhance efficiency and innovation within Israel's payments system.
Under the framework, ATMs will be gradually upgraded to enable contactless cash withdrawal functionality. Currently, cash withdrawals require customers to insert a payment card into a card reader. The new system will allow withdrawals via contactless card technology and digital wallets, improving user experience and accessibility for the broader public.
The implementation will occur in three phases. In the first phase, by July 2026, contactless withdrawals will be available at ATMs supporting the required technology within the customer's home bank. Subsequently, by December 2027, cross-bank contactless withdrawals will be enabled across all compatible ATMs regardless of the customer's banking institution. In the second phase, beginning June 2027, newly installed ATMs must support contactless withdrawal capability. In the third phase, by the end of 2030, all existing ATMs will be converted to support contactless withdrawals.
Offer Golan, head of the BOI's Payments and Clearing Department, said the initiative represents a significant milestone in strengthening efficiency and innovation in Israel's payments infrastructure. The contactless withdrawal service will deliver advanced, convenient, and more accessible user experiences while reflecting the BOI's commitment to continuously improving Israel's payments system in alignment with evolving technological environments.
The ATM Committee serves as a platform for all relevant market participants to discuss professional and technological matters concerning cash withdrawal operations, aiming to increase efficiency and competition while maintaining system stability.