Israel Fintech Digital Remittances Market Size and Forecast by Transfer Channel, End Users, Industry, Remittance Type, and Transaction Purpose: 2019-2033

Israel Fintech Digital Remittances Market Growth and Performance

• The Israel fintech digital remittances market size is expected to generate US$ XX6.8 Million in revenue by 2033, with a projected Compound Annual Growth Rate (CAGR) of XX.5%.
• In 2023, fintech digital remittances industry in Israel reached a value of US$ XX8.6 Million.

Israel Fintech Digital Remittances Market Outlook

Israel fintech ecosystem is rapidly evolving into a global model for digital remittance innovation, powered by cutting-edge developments in blockchain, digital wallets, and Central Bank Digital Currencies (CBDCs). Backed by forward-thinking institutions like the Bank of Israel, the country is pushing the boundaries of what’s possible in cross-border payments and digital financial inclusion.

At the heart of this transformation is Project Icebreaker, a collaborative pilot involving the central banks of Israel, Sweden, and Norway, alongside the Bank for International Settlements (BIS) Innovation Hub. This groundbreaking initiative successfully tested the integration of domestic CBDC systems to build a hub that supports real-time, low-cost, and secure cross-border payments. The model empowers users by offering competitive exchange rates through multiple forex providers while aligning with global payment standards.

Within the domestic space, Israel is witnessing a digital surge. According to the Bank of Israel, the value of digital payments made via wallets rose more than 13x between August 2021 and July 2023, reaching ?3.58 billion ($0.95 billion). Meanwhile, daily expenditures through digital wallets increased sixfold, hitting ?115.7 million. This rapid adoption reflects consumer readiness for advanced financial tools and the success of fintech players in educating the market.

One of the most impactful moves came from Rewire by Remitly, which recently removed fees for international money transfers from Israel to over 130 countries. This decision is expected to collectively save users millions annually and further democratize access to financial services. With Israel being a hub for migrant workers, students, and expats, such changes significantly ease financial burdens on communities sending money abroad.

Further accelerating innovation is the Digital NIS Challenge, initiated by the Bank of Israel. A fully functional prototype of the digital shekel is being tested, enabling Payment Service Providers (PSPs) to create advanced use cases like offline payments, smart contract integration, and anonymous microtransactions. This design also proposes a two-tier CBDC model, ensuring that while the Bank of Israel handles issuance and system rules, PSPs take charge of customer-facing services.

In parallel, Israel’s role as a fintech innovator is reinforced by startups like Fireblocks and Celsius Network, which are building secure crypto transaction infrastructure and digital asset custody platforms. These solutions are instrumental not only in enhancing security and speed but also in reducing the cost of remittances—currently a global average of up to 7% using traditional methods. Blockchain and decentralized solutions introduced by Israeli fintech firms are bringing this figure significantly down.

Moreover, Remitly's acquisition of Rewire for $80 million marks a strategic alignment to expand remittance services globally. The synergy leverages Rewire’s technology and Remitly’s expansive reach across 170+ countries, where it processed $14.5 billion in Q3 2024 alone. Such consolidation strengthens Israel's position in the global digital remittance market, while also addressing the needs of underbanked populations.

System-wide infrastructure upgrades like the modernization of ZAHAV (RTGS system) and the adoption of ISO20022 standards reflect the Bank of Israel’s emphasis on reliability and international compatibility. Between 2021 and 2023, Israel's payment systems reported nearly 100% availability, fostering trust in digital platforms and contributing to macroeconomic stability.

Israel’s dedication to building secure, accessible, and innovative digital remittance solutions is propelling the nation to the forefront of global fintech. With expanding adoption, partnerships, and infrastructure improvements, the country is laying a robust foundation for a multi-billion-dollar remittances market rooted in transparency, inclusion, and seamless digital experience.

Israel Fintech Digital Remittances Market Scope