Isracard to buy digital bank Esh

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Credit card company Isracard (ISCD) will pay NIS 400 million in shares to acquire Israeli digital bank Esh. The deal will give Esh Bank a valuation of up to NIS 500 million. Isracard will also invest $40 million in the eOS technology company set up by the founders of Esh.

Isracard, managed by CEO Itamar Furman and controlled by Yitzhak Tshuva’s Delek Group (TASE: DLEKG), has signed a memorandum of Understanding (MoU) to buy the shares of Esh Bank from its founders Nir Zuk, Alon Shine, Clal Insurance, Yuval Aloni, Alex Liverant and Shiri Raanan.

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Isracard will pay NIS 250 million in shares and subsequently an additional NIS 150 million according to terms that will be negotiated between the sides. In addition, under certain circumstances, a further NIS 100 million could be paid for Esh Bank’s shares.

A major banking player

Nir Zuk, one of the founders of Esh Bank, remains in the picture and is expected to maintain a stake in the partnership that will own the bank. Zuk stepped down last August from the cybersecurity giant Palo Alto Networks, which he founded.

The move brings Isracard closer to holding banking operations and gives it a foothold in preparation for the reform that will allow the establishment of new, leaner banks in Israel, which is on track to complete regulation and legislation in the coming year.

Esh Bank said that the deal is expected to pave the way for Isracard to become a major banking player while increasing competition for the benefit of the public in Israel.

Esh Bank is led by chairman Prof. Shmuel Hauser and CEO Kobi Malkin.

Innovative model without current account fees

Last September, Esh Bank unveiled the model of its operations, three years after receiving a conditional license from the Bank of Israel. The bank has developed its own banking operating system, and its executives presented an innovative model in which the bank will share half of the income it generates with its customers’ money, and deposit it in their accounts.

Esh Bank has also developed a model in which current accounts will not be charged fees, compared with a cost of NIS 10-50 per month at other banks in Israel. There will also be guaranteed interest paid on all Esh Bank accounts, which will be the same for all customers.

Now that Isracard is taking over Esh Bank, it remains to be seen what the business plan that will be offered in practice will be.

Published by Globes, Israel business news — en.globes.co.il — on March 18, 2026.