Israel Postal Company Ltd. plans to launch Visa debit cards in the first quarter of 2011, adding to its existing banking operations, an official from Israel’s national postal service tells PaymentsSource.
The launch is subject to the company receiving approval for a license from Visa Europe to issue payment cards, the offical says.
“The postal service will only issue cards,” he says, noting that a third-party company, to be selected later this month, will handle transaction-processing. The agency is considering using one of three domestic processing companies, including Israel Credit Cards-Cal Ltd., Isracard Ltd, and Leumi Card Ltd.
Though the official expects Visa Europe will issue the agency a license for all types of payment cards, the postal service initially plans to issue debit cards only.
The Israel Postal Company has 400,000 customers that maintain checking accounts for its postal banking service, with deposits totaling more than 600 million shekels (US$158.2 million), the official says. The agency has 700 post office branches around the country.
