Imagine having to download a separate app for every bakery in your city just to buy a loaf of bread. Not just download it – register, input your credit card details, wait for verification, and preload a digital wallet. Each bakery has its own system, each chain its own rules, and every small purchase turns into a digital bureaucracy.
Sounds absurd? That’s exactly what’s happening today in Israel’s electric vehicle (EV) charging market.
If someone from the future were to glance at the year 2025 and discover that, in the era of artificial intelligence and advanced technology, consumers are forced to carry more than 20 different apps just to charge their car, they’d probably assume it’s a parody of technological progress. Unfortunately, this is the bizarre reality created by Israel’s EV charging market, where each operator has built its own closed digital kingdom, and the consumer is forced to be a citizen of all of them simultaneously.
A reflection of a fundamental market failure
This situation reflects a fundamental market failure. In a healthy competitive market, the consumer should enjoy freedom of choice and flexibility – not be trapped within multiple closed systems that don’t communicate with one another.
The absurdity is that while traditional gas stations accept any credit card from any bank and are shifting to touch-based payments via smartphones, EV charging stations require you to “join the club” of each operator individually.
This phenomenon creates artificial entry barriers that harm competitiveness. Operators exploit the lack of standardization to “lock in” customers. A user who has already downloaded an app and entered their personal details will likely stick with that network – even if prices are higher or the service is inferior. This eliminates consumer bargaining power and allows operators to charge inflated prices.
There’s also genuine cybersecurity concern. When consumers must share their credit card details with dozens of different companies, they expose themselves to real risks. Not every EV charging operator is an expert in data protection on par with financial institutions, yet they manage sensitive consumer information, including credit card data used for recurring charges.
There are simple technological solutions
The solution lies in standardizing payment methods. Just as any business accepts any credit card, so too should EV charging stations. Technology already exists – secure payment directly through a credit card terminal, without the need for prior registration or app downloads.
Only when consumers can arrive at any charging station, plug in their vehicle, pay by credit card, and track the charging process via a simple QR code, will the market become truly competitive. Consumers will choose stations based on location, charging speed, and price – not based on which app they’re willing to download.
Energy regulators must follow the lead of mobile phone market reforms: enforce standardization that ensures openness and competition. Israel’s EV charging market is still in its infancy – this is a golden opportunity to correct the failure before it becomes entrenched.
At the end of the day, the purpose of technology is to serve people, not the other way around. Drivers wanting to charge their cars should not need to become experts in dozens of different apps. They should be able to arrive, charge, pay, and drive away – just like at a gas station.
To promote a user-friendly, accessible, and transparent charging experience, Israel should adopt the advanced standards already implemented in Europe and the UK. As of November 2024, every public charging point in the UK over 8 kWh must include a contactless payment terminal that supports digital wallets.
In light of global trends and advancing regulation in Europe – led by the Alternative Fuels Infrastructure Regulation (AFIR) that positions the EU market as a global role model, the future clearly lies in accessibility, simplicity, and standardization. Installing smart payment terminals, whether physical or proximity-based, is not merely a regulatory requirement but a vital step toward a positive user experience that encourages widespread EV adoption.
Israel must embrace these standards promptly to integrate into the global market and lead the smart transportation revolution at home.
The writer is chief business expansion officer at Nayax.