Widespread price hike in Israel doesn’t seem to have an effect on citizens’ consumption – On the contrary, Israelis continue to heat up their credit cards, breaking a new record for shopping volume in malls last month .
Figures collected by the Shva banking service showed that in June, a new daily record for credit card usage in Israel was recorded: more than 355 million, an increase of 1.7% compared to the previous November 2021 record for Black Friday.
“Israeli consumers are increasing their volume of spending through the credit card, which has become the most convenient and available form of payment,” said Ronit Tischler Petty, Vice President of Operations and Partner Relations. at Shva.
“The June data was characterized by a strong increase in in-store and offline purchases, which led to a new record high in daily spending volume,” he continued. ICE reports the financial newspaper.
Israelis are therefore addicted to credit cards.
Spending by Israelis using the cashless payment method amounted to $116.6 billion in 2021, an increase of nearly $16 billion from 2020, according to Shva.
“When we withdraw cash, we know in advance that we are limited, whereas when we pay by card, even if we are debited at the end of the month, we have the feeling of being unlimited and that’s fantastic” , Jessica, an Israeli citizen, says i24NEWS.
“We’re in a consumer society where we want everything right away, so when we see something we like, it’s easy, we pull our card, and it’s ours,” she added. , saying that the price hike would not change his consumer activity.
In 2021, Israelis paid the most by credit card in the food industry – $15.5 billion, far ahead of the appliance sector, with purchases amounting to $7.4 billion. In the apparel and footwear industry, spending on cards was nearly $7.3 billion, while in restaurants it was $6.5 billion.
A recent rise in the price of eggs, bread, cinema tickets and gasoline does not seem to have disrupted the daily lives of Israelis. More worrying, however, is the 9.6% rise in electricity prices expected next month.
“The increase in the price of electricity is the worst we can see, especially in the middle of summer, because the air conditioning runs continuously and it consumes a lot,” said Tal, manager of a beauty salon in Jerusalem. at i24NEWS.
“Prices were already high but then we have no choice but to live on credit to get by.”