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ARTICLE · 02 NOVEMBER 2026

Payment Services: When Does Collecting Payments From Customers Require A License?

The Israel Securities Authority has issued two critical staff positions that clarify when businesses collecting customer payments must obtain payment service licenses. These rulings examine whether companies act as independent commercial parties or mere payment intermediaries, with implications that extend beyond simple fund-holding duration to the fundamental structure of business relationships and contractual obligations.

IsraelFinance and Banking

Do you collect payments from customers and pass them on to suppliers? Two positions issued by the Israel Securities Authority (ISA) staff, concerning Pango and the Hever club, illustrate why the underlying business model warrants closer examination. The question is not merely how long you hold the funds, but the capacity in which you act: an independent commercial party or a link in the payment chain. This distinction may directly affect licensing requirements.

1. Pango: Commercial Substance Is Key

Pango sought the ISA’s position that its “blue-and-white” curbside parking service does not require a license under the Regulation of Payment Services and Payment Initiation Law, 2023. Under the arrangement reviewed, users pay Pango for parking, and Pango pays the local authorities under its agreements with them.

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