Mizrahi Tefahot Bank has become the first financial institution based in Israel to roll out a contactless system for withdrawing cash from automated teller machines. Customers can now access funds by tapping a smartphone, smartwatch, payment ring, or bracelet against the machine, eliminating the need to insert a physical card.
The new capability relies on near-field communication (NFC) technology, the same short-range wireless standard used for tap-to-pay transactions at retail checkouts.
Bank customers first add their Mizrahi Tefahot-issued Visa or Mastercard to a compatible digital wallet such as Apple Pay or Google Pay.
At participating ATMs, they authenticate the transaction on their device using a passcode, fingerprint, or facial recognition, then enter the card’s personal identification number on the ATM keypad to complete the withdrawal.
The same tap method also works with contactless versions of the bank’s physical credit cards, allowing users to hold the card near the reader instead of inserting it into the slot.
Mizrahi Tefahot CEO Moshe Larry highlighted the milestone, stating that the bank is proud to deliver what it describes as the next generation of cash access.
He noted that the launch aligns with the institution’s broader approach of blending personalized service with convenient, innovative digital tools, and reflects its goal of leading the market while providing tangible benefits to clients.
For the time being, the service is restricted to Mizrahi Tefahot’s own ATMs—approximately 200 machines—and can only be used with cards issued directly by the bank in partnership with local credit card companies.
Withdrawals are not yet supported at machines operated by other banks or independent providers.
The feature was developed in collaboration with the credit card issuers, representatives of Visa and Mastercard, and Shva, the company that manages Israel’s ATM network switching system.
This development arrives ahead of a nationwide timetable set by the Bank of Israel.
Under the regulator’s phased plan, contactless withdrawals will first become available at a customer’s own bank’s compatible machines by July 2027.
The service is scheduled to expand to any compatible ATM by December 2027, with rules preventing the installation of new non-contactless machines from mid-2027 onward.
By the end of 2030, all ATMs in the country are expected to support the technology.
Roughly half of Israel’s existing ATMs already have the necessary hardware, though full rollout requires additional software upgrades and security testing to meet EMV standards.
Israel has trailed many other countries in adopting contactless ATM withdrawals, but the shift builds on recent progress in digital payments, including the introduction of major mobile wallet services and the transition to more secure card standards.
While some Israeli banks already offer cardless cash access through their mobile apps—typically involving multiple steps such as generating a code or logging in remotely—the new NFC-based approach offers a faster, more intuitive experience similar to everyday contactless purchases.
The introduction of tap-to-withdraw functionality is expected to improve convenience for customers who prefer not to carry physical cards, reduce the risk of card skimming or machines retaining cards, and streamline transactions at busy locations. As more banks and ATMs adopt the technology in the coming years, Israelis may see a broader transformation in how cash is accessed, moving further toward seamless integration between physical and digital banking channels.