By Steven Scheer

JERUSALEM (Reuters) — Alphabet Inc (NASDAQ:) Inc launched Google Pay Israel on Tuesday. Israel’s largest banks and credit card companies announced they have reached agreements with Google to provide the payment service.

It will enable Android smartphone users to purchase products from stores that support contactless payment.

According to Israeli media, 70% of Israelis own Android-based smartphones. This could be a huge market for Google Pay which boasts over 150 million users across more than 40 countries.

Apple (NASDAQ 🙂 launched Apple Pay in Israel in May. Israel is home to 30% of iPhone owners.

According to Bank of Israel data, approximately two thirds of Israeli payment terminals support wireless payments. This standard allows for payment by smartwatch, mobile phone or credit card.

Shva, which is Israel’s credit card processing company, stated that 58.1% were credit card transactions made in Israel through contactless or digital wallets in October. This equated to 373.8 million shekels ($118.5million).

Shva stated that the number of digital wallet purchases has increased 200% in the last half-year since Apple Pay was introduced.

Eitan Lev Tov, chief executive of Shva, stated that “Google Pay’s entry will result in a further rise in digital wallets.”

Israel has large credit card and banks companies that issue Visa (NYSE 🙂 Mastercard (NYSE 🙂 cards. American Express (NYSE.) cardholders stated that they have signed contracts with Google Pay. Some banks will give cash to customers who use the service.

($1 = 3.1546 shekels)