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‘One in three’ Norwegian homes worse off than at start of 2022

The proportion of households in Norway that are struggling to make ends meet is increasing, according to new analysis.

Published: 30 July 2022 12:05 CEST

'One in three' Norwegian homes worse off than at start of 2022

An increasing number of Norwegian households are struggling with living costs. Photo by Jonas Leupe on Unsplash

In a new report, analysis institute Consumption Research Norway (SIFO) at Oslo Metropolitan University concludes that one in three homes in Norway have worse finances now than they did in January this year.

The ability to pay bills, interests and loan repayments are meanwhile cited as a problem for one in four of all households.

“We are in an expensive time, which has been building up since August last year and got stronger during the winter. We are now talking about higher prices for energy, fuel, food and higher interest,” researcher Christian Poppe told broadcaster NRK.

“The sum of this has impacts unequally and some people are hit extra hard,” he said.

Two thirds of people who spoke to researchers for the report said that they had been forced to rein in spending due to higher living costs.

Cutbacks reported include reduced use of electricity, less car use and less social activity.

21 percent said that they had reduced their food budget to make ends meet, a number that increases to 60 percent amongst those who said they had been hardest-hit.

“There are isolated warning signs in this report and the proportion of people saying they have to save on their food budget is high,” Poppe told NRK.

“There is a limit to how little you can spend on food and in some cases people already don’t have enough money for food,” he said.

Researchers spoke to a representative selection of Norway’s 2.1 million households to produce the report, which shows a significant increase in economic stress at homes compared to a similar study from July 2021.

66 percent said they are finding it difficult to pay energy bills, with those in the south of Norway more severely affected than those in the north.

Energy prices in southern Norway have been up to 131 times higher than those in the south in recent weeks, according to Nordpool figures.

The consumer price index, a measure of the cost to households of everyday goods, has increased by 6.3 percent since last summer, NRK writes.

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Vipps MobilePay: Will cross-border payments be rolled out across the Nordics before the summer?

The landscape of e-payment solutions is growing rapidly in Scandinavia, spurred on by the increased reliance on digital transactions, particularly during the COVID-19 pandemic.

IN NUMBERS: How close is Denmark to becoming cash-free?

Among the players driving this transformation is Vipps MobilePay, the result of the 2022 merger of Norwegian e-payment giant Vipps and Danske Bank’s MobilePay, which has set ambitious goals for delivering a unified platform that can be used throughout the Nordic region.

But will consumers in Norway, Denmark, and Finland see the rollout of Vipps MobilePay before the summer begins?

New apps in Finland and Denmark

Since the merger of Vipps and MobilePay in 2022, the combined company has been working towards creating one app and one technological platform that can serve users across the Nordic countries.

In Finland, a significant milestone was achieved on January 23rd this year when the new MobilePay app was unveiled to 2.6 million Finnish users.

With the Finnish implementation completed, the focus shifted to Denmark, where a new version of the MobilePay app was rolled out to 4.5 million Danish users on March 12th, signalling a significant milestone, and setting the stage for simpler cross-border payments within the Nordic region.

While some hiccups were reported in the Danish media following the move – and in the run-up to it – the migration was broadly seen as a success.

With the March migration, some 11.5 million users in Norway, Finland, and Denmark were united, setting the stage for potential cross-border payments in the near future.

A broader Nordic rollout before the summer?

If all goes according to plan, according to Rune Garborg, CEO of Vipps MobilePay, consumers can expect to use Vipps MobilePay across Norway, Denmark, and Finland before the summer arrives, with Sweden potentially following shortly after that.

This anticipated rollout is part of a series of launches planned for 2024, including cross-border payments and the introduction of tap-to-pay functionality for iPhone and Android.

“This and much more will make us fit for competition with the world’s biggest tech brands that have all moved into the payment sphere,” Garborg said in a March press release.

MobilePay: What is it, and how do I use it?

The MobilePay app provides a straightforward mobile payment solution for consumers in Denmark.

It allows them to carry out transactions directly from their smartphones, converting their devices into digital wallets.

With roots in person-to-person transfers, MobilePay has expanded its reach to include physical stores, online retailers, and mobile applications, solidifying its position within Denmark’s payment landscape.

To use MobilePay, you need to download the app and link it to your bank account or bank card. This setup enables painless fund transfers and payments, including contactless transactions, using NFC technology.

Considering the widespread adoption and popularity of MobilePay in Denmark, you might wonder whether the country is close to becoming cash-free.

However, although app payments are commonplace and almost all businesses accept debit cards, one in five people in the country still say they would find it difficult to be without cash.

To learn more about Vipps in particular and where and how you can use it in Norway, check out The Local’s explainer on the e-payment app.

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