Fintech unicorn Rapyd prepares to shake up the credit card market
Fintech unicorn Rapyd prepares to shake up the credit card market
Rapyd is seeking a clearing license in Israel to compete with Isracard, Max, and other traditional players.
Rapyd, the Israeli fintech giant, is preparing to challenge Israel's traditional credit card companies. Calcalist has learned that Rapyd has submitted an application to the Israel Securities Authority for an expanded clearing license. If approved, the company plans to issue credit cards, directly competing with established players like Isracard and Max.
Rapyd is confident it will secure the license under the authority of Seffy Zinger, the Chairman of the Israel Securities Authority. The company has already begun groundwork, engaging with major local businesses to secure agreements for clearing credit card payments. If successful, Rapyd will be the first company to receive an expanded clearing license from the Securities Authority since it assumed responsibility for clearing licenses earlier this year, a role previously held by the Bank of Israel.
Rapyd was founded in 2015 by Arkady Karpman, Arik Shtilman, and Omer Priel. The company provides a global payment platform for businesses and consumers, facilitating bank transfers, digital wallet payments, and cash transactions. In 2022, during the technology sector's boom, Rapyd achieved a valuation of approximately $15 billion in a secondary deal, making it Israel's highest-valued private tech company. Rapyd previously acquired Icelandic clearing company Korta, and it may rely on this technology as it enters the Israeli clearing market.
Related articles:
- Rapyd CEO: "We moved to profitability this year and AI will triple our EBITDA margins in the next three years"
- Rapyd lays off dozens of employees, transferring positions from Israel to Eastern Europe, South America
- "One of the beautiful things about Israeli high-tech is that we are all committed to delivering"
Clearing fees are a major revenue source for Israel’s credit card companies. According to Isracard’s 2023 financial results, fees in its business segment totaled NIS 500 million out of NIS 3.15 billion in revenues. Max reported NIS 474 million out of NIS 2.1 billion, while Cal generated NIS 284 million out of NIS 2.6 billion. In January–September 2024 alone, Isracard’s clearing income reached NIS 386 million, Max's totaled NIS 372 million, and Cal’s clearing revenues stood at NIS 237 million.
The push to grant clearing licenses to private companies emerged from a desire to increase competition in the market. If Rapyd’s application is approved, it will be supervised by the Israel Securities Authority, while larger credit card companies like Isracard, Max, and Cal remain under the supervision of the Bank of Israel.
