Hit for competition: Pay app (formerly Pepper Pay) closes

by time news

Good news for Bank Hapoalim’s Beat app – but a little less good for competition: Bank Leumi’s Pay app will stop working soon

Source: National

A blow to competition in the payment and money transfer market in Israel. Bank Leumi’s Pay Payments app, formerly known as Pepper Pay, and was Bank Hapoalim’s main competitor in Bit, is closing.

You have until April

According to the Mako website, users of the app received a message today (Thursday) informing them that the app will cease to operate in April, and that it will not be possible to transfer payments and funds.

Hello, for your update that on 10.4.22 a payment service and receipt of funds in the PAY payments app will end. We will mention that money transfers can be made to your PEPPER account, along with all the services available to you. ”

Except for the message sent to users, there is no mention of the app closing. The Facebook page and website of the app are functioning normally and the app can still be downloaded from the app stores.

The implication of closing the app and transferring users to the Leumi app is that the number of players in the field of payments drops from 3 to 2. As a result, Bank Hapoalim will now enjoy a market share of more than 80 percent of the market, making it a de facto monopoly. The only player left at the moment, with the exception of Beat, is Discount Bank’s Facebook and of course she is nowhere near the market share of the monster from Bank Hapoalim.

It is important to remember that payment apps began their way as banks’ way of facing the reform that required them to get rid of their lucrative credit card operations. In practice, payment apps have gained momentum and often replace credit card payments and offer an almost unique alternative to transferring payments between individuals and businesses. Banks have invested heavily in acquiring users by, among other things, subsidizing the activity, non-payment of any fees (except for the banks’ fees), and offering gifts and benefits – and it is hard to believe that without competition they will continue to bleed money to acquire users.



More such stories are waiting for you now


More such stories are waiting for you now
In the official Giktiim update channel

Bank Leumi confirmed the closure of the app and said: “As part of improving the service experience, we decided to concentrate a variety of advanced digital services in one place, in the Leumi app, including the money transfer service for mobile contacts. We will continue to upgrade our value proposition in the app and in the digital channels in the future, with additional advanced services that will save time and costs. ”

Yaniv Avital

Giktiim website editor. Do you have an idea for the article? A secret tip? leak? Waiting for you at [email protected]


wpDiscuz

Tags for the article:

You may also like

Leave a Comment