Kobi Ram, CEO and founder of V-CHECK: We are proud to be among the leaders of the revolution in the digital payments market in Israel. The approval of the Capital Market Authority and the recognition of the V-Check system is another step to increase competition in the payments market in Israel. To the authority that understood the value in promoting the digital check as a means of payment and its contribution to market competition.”
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He also said: “I have no doubt that the digital checks will slowly enter the C2B consumer market and, of course, the independent business market as well. In the days of increasing interest rates in the economy and high fees, the addition of the possibility of payments to businesses, authorities, institutional bodies and other factors, which includes a layout for payments that are not will harm the credit framework, without the addition of interest payments or linkage – is significant news.”
Unlike bank transfers, a digital check, like a regular check, has many advantages. Such as the possibility to spread payments, transfer a deferred payment, give a security check and more. The essential difference between a regular check and a digital one is that “the asset” is digital and thus saves all the work required with a paper check, which includes securely keeping the check and depositing it at the required time.
This is great news for many business owners and freelancers, who are currently required to spend valuable time on managing supplier payments and payments to institutional entities. The annual payment cycle in checks is about NIS 812 billion compared to only about NIS 300 billion in credit. The main use of checks is in the business sector, between suppliers and institutional and retail customers. This is because the check is the only payment solution that allows you to pay other than by cash or credit card.
It is also the only solution for creating a deferred payment/in installments without loading the credit line or dragging payments at high interest rates. There is no doubt that the granting of the license is a clear step on the part of the Capital Market Authority to support fintech entities and digital financial tools out of a desire to increase competition in the payments market and in the banking industry in Israel.