The Paybox app announced that it will pay its customers from all banks an (annual) interest of 3% on the balance in the app.

The PayBox application is breaking the market and fighting back against the banks, this after announcing yesterday (Monday) that it will pay its customers from all banks an (annual) interest of 3% on the balance in the application. According to Paybox, the new service is a significantly better alternative for over NIS 500 billion that are currently "lying" in bank current accounts on which the public receives no interest.

As part of the service, Paybox users will receive interest on their personal balance, which will continue to be available to them for withdrawal, transfer or payment, at any time and at no cost. The interest will be given to customers of all banks, who have a Paybox credit card. New users will be able to receive the free digital card (with no card fees for life) directly from the app, and start loading money into the balance and receive interest on it. In the first stage, in light of regulatory limitations, it will be possible to hold a balance up to a threshold of NIS 20,000, which will be increased later. The interest will accrue daily and will be paid once a month directly to the paybox balance. The service will be uploaded to the application starting today and in the coming days will be available to all customers

So what is actually going on here? In fact, Paybox is a type of e-wallet or rather a payment app that was established primarily to enable micro-payments between people. Paybox is the only application that allows its users to have credit balances without transferring them to the bank account. 

Paybox has understood what is happening in the world of banking and finance and seen that people do not withdraw their balances to the bank account as they do more operations through the application. It now allows you to deposit payments into a 'vault' and receive an interest rate of 3% per year bank interest.

Let's explain it again. Let's say you receive a few hundred shekels on the app. Now you will need to pay for children's classes, small items etc through the Paybox app, so what is the logic of transferring the money to your bank account? You leave it in Paybox for future payments. Now that you have a credit balance in the app, you can deposit it in a 'vault' and even receive interest, and this is the innovation that is currently unique to Paybox. Between NIS 500 and NIS 250,000 can be deposited into this 'vault' and earn interest. 

Photocredit: Paybox

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