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

2024 is turning out to be a big year for e-payment apps across the Nordics, but is there any chance that you will be able to use Vipps MobilePay across borders before the summer starts?

MobilePay
Vipps MobilePay has set ambitious goals for delivering a unified platform that can be used throughout the Nordic region in 2024. Screenshot: App Store; Photo by David Dvořáček on Unsplash

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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ECONOMY

‘Turning point’: What the future holds for Norway’s economy

The standstill in Norway's economy may soon be at an end, according to a new report from Norway's national data agency. The agency isn't alone in its optimistic outlook, as the country's PM has said the country is at a 'turning point'.

'Turning point': What the future holds for Norway's economy

Norway’s economy should begin to pick up in the coming months and years after a period of stagnation, according to a national data agency, Statistics Norway, in a forecast on the Norwegian economy.

“With lower interest rates and clear wage growth, household consumption will increase. Economic activity will also pick up as a result of increased public consumption and an increase in housing investment,” said Thomas von Brasch, head of research at Statistics Norway.

The stagnation would likely continue for the rest of 2024 before picking up in 2025 and returning to a more neutral position in 2026.

“The standstill in the Norwegian economy is soon over,” von Brasch said.

After a period of high inflation, peaking at 7.5 percent in October 2022, price rises have begun to moderate. During this period, inflation in Norway was at its highest level since the 1980s.

This is good news for those hoping for lower interest rates, as the central bank had raised rates rapidly to try and control inflation and get it towards a target of two percent.

“Lower inflation at our trading partners will cause inflation here at home to continue to fall. Reduced interest rates internationally also contribute to the policy rate being gradually cut in Norway,” von Brasch said.

After the latest inflation figures for Norway were released, many economists predicted that the first cut would arrive around December. Between May 2023 and May 2024, inflation was measured at 3 percent.

READ ALSO: What Norway’s latest inflation figures mean for your finances

Market rates, the interest rates consumers pay, are expected to fall from around 4.7 percent this year, to 4 percent next year, and 3.5 percent the year after.

Norway’s PM, Jonas Gahr Støre, said the Norwegian economy was at a “turning point”, with the future looking much more positive for those in Norway.

“It is good news for people’s finances and clearly confirms that we are at a turning point in the economy where people can get better advice. Statistics Norway estimates that price growth will continue downward, so interest rates can eventually be lowered. They also expect increased purchasing power for people this year and in the following years. The government aims for people to get better advice,” PM Jonas Gahr Støre told Norwegian newswire NTB.

One factor that had the researchers at Statistics Norway more uncertain was the development of the Norwegian krone.

“The development in the krone exchange rate is important for inflation, among other things through import prices measured in Norwegian kroner. There is great uncertainty surrounding exchange rate movements,” the report read.

However, it added that keeping exchange rates the same in the coming years could be considered a positive development. This may disappoint those who have been negatively affected by a weakened krone.

Still, there was much better news when it comes to wages. Over the past eight years wages have barely grown in real terms, meaning price increases have outpaced wages. Workers in Norway can look forward to real wage increases of around 1.5 percent until 2027.

Unemployment would rise slightly in the coming years, though, from 4 percent currently to 4.2 percent in 2025.

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