Mizrahi Tefahot Bank said Sunday it has become the first bank in Israel to allow customers to withdraw cash from ATMs using a mobile device, including a smartphone, smartwatch, payment ring or payment bracelet.
The service uses NFC (near-field communication) technology, eliminating the need to insert a physical card into the ATM. Customers can also withdraw cash by simply tapping their contactless credit card against the machine, without inserting it into the card slot, similar to making a contactless payment at a checkout.
Mizrahi Tefahot Bank is the first bank in Israel to enable cash withdrawals from ATMs using a mobile device
(Photo: Tal Shahar)
The bank is rolling out the service ahead of the timetable set by the Bank of Israel. For now, however, it is available only with the bank's own credit cards because the technology has not yet been enabled for non-bank-issued credit cards. Customers who want to withdraw cash using a mobile phone or wearable device must first add their bank-issued card to a digital wallet such as Google Pay or Apple Pay.
At this stage, the feature is available only at approximately 200 Mizrahi Tefahot ATMs. It does not work at ATMs operated by other banks or at privately owned cash machines.
A PIN is still required
Mizrahi Tefahot issues Mastercard and Visa bank cards in partnership with Israel's three credit card companies — Isracard, CAL and MAX. The project was developed in cooperation with the credit card companies, the local representatives of Visa and Mastercard and Shva, which operates the switching system connecting ATM networks with card issuers.
The transaction still requires authentication through the digital wallet — using the device passcode, facial recognition or fingerprint authentication — as well as entry of the card's PIN on the ATM keypad.
At other Israeli banks, cash withdrawals at most ATMs still require customers to insert a physical card into the machine, much as credit cards were once "swiped" at payment terminals.
Some banks already allow cardless cash withdrawals through their banking apps, and in some cases through their telephone service centers, but the process involves multiple steps: logging into the app, waiting for it to load, selecting the withdrawal amount, receiving a code and then withdrawing the cash. With a digital wallet, customers simply tap their device on the ATM, enter the amount and withdraw the money.
All Israeli ATMs to support contactless withdrawals by the end of 2030
The ability to withdraw cash without inserting a card marks another step in Israel's digital payments transformation, following the launch of Google Pay and Apple Pay in the country and the nationwide rollout of the EMV international payment security standard. Within just a few years, Israeli consumers have largely shifted from swiping credit cards to contactless payments, with many now paying with their smartphones and smartwatches.
At the end of May, the Bank of Israel announced that ATMs across the country will soon support contactless cash withdrawals, allowing customers to use digital wallets installed on mobile phones and other devices. While the technology is already available in many countries, it has not previously been implemented in Israel.
Under the central bank's plan, the rollout will take place in three stages:
By July 2027: Contactless withdrawals will be available at compatible ATMs operated by a customer's own bank.
By December 2027: Customers will be able to make contactless withdrawals at any compatible ATM, regardless of where they hold their account.
From June 2027 onward: No new ATMs that lack contactless capability may be installed.
By the end of 2030: All ATMs in Israel are to be upgraded to support contactless cash withdrawals.
Currently, nearly half of Israel's ATMs already have the required hardware, although the capability has not yet been activated because regulatory approval was granted only recently. Even ATMs equipped with contactless hardware still require software development and additional testing to support secure EMV authentication.
Industry officials expect deployment to proceed quickly, pointing to Mizrahi Tefahot's early rollout as evidence. The Bank of Israel believes that although Israel is adopting the technology later than some other countries, it could become one of the first to achieve full nationwide implementation.
Israel still has a large number of aging ATMs, particularly those operated by private companies rather than the major banks, including machines located in kiosks, convenience stores and gas stations. Because these machines require costly hardware upgrades — and often charge relatively high withdrawal fees — regulators have given the industry an extended transition period.
Mizrahi Tefahot CEO Moshe Larry said: "We are proud to be the first bank in Israel to offer customers the next generation of cash withdrawals. This initiative is another component of the bank's service strategy, which combines personalized banking with advanced, user-friendly and innovative digital services. Launching this service for the first time in Israel reflects our commitment to leading the market and continuing to deliver real value to our customers."