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Vipps MobilePay has become the first company in the world to offer an alternative to Apple Pay on iPhone, in a significant move for payments in Europe and worldwide.
The agreement between the European Commission and Apple that was struck in July 2024 regarding access to Apple’s near field communication (NFC) software has not taken long to spark competition in the European Economic Area.
Starting this week, just in time for the Christmas season, Vipps users in Norway can tap their phones to pay in stores using a new feature, "Tap with Vipps."
This development marks a significant shift in the mobile payments landscape, giving consumers the power to choose their preferred payment app on iPhones for the first time.
"We have fought for years to be able to compete on equal footing with Apple, and it feels almost surreal to finally be able to launch our very own solution. This will now be a very exciting battle between the world's biggest brand and Vipps," said Rune Garborg, CEO of Vipps MobilePay.
Vipps enables users to perform a wide range of payment tasks, including sending money to friends, paying online, joining customer clubs and donating to organisations.
Initially, customers of SpareBank 1, DNB and more than 40 other local banks will have access to Tap with Vipps, with plans to include additional banks in the near future.
The service is compatible with all card terminals in Norway that accept BankAxept, the country’s national payment system.
By Summer 2025, the functionality will extend to Visa and Mastercard, allowing Vipps users to make contactless payments worldwide.
Vipps MobilePay plans to introduce the "Tap and Go" solution in Denmark, Finland and Sweden in 2025, further expanding its reach across the Nordic region.
Garborg said that the company believes that its customers will “find it advantageous to only have to deal with one payment app and finally have the opportunity to use Vipps in situations where they would normally use their plastic card”.
“After Apple opened up, it has been important for us to launch as quickly as possible, to meet tough competition,” said Garborg. “However, we will continuously add more simplifications, international cards, and more banks.”
Opening up
Apple’s decision to “open up” came after a four-year tussle between the technology giant and the European Commission’s competition authority.
The firm ultimately agreed to new antitrust commitments that allow mechanisms such as host card emulation (HCE) payment apps to initiate payments at other industry-certified terminals, such as SoftPOS.
Apple also confirmed that developers will be able to combine the HCE payment function with other NFC functionalities.
It removed the requirement for developers to have a payment service provider (PSP) licence or binding agreement to access NFC, which was part of the original agreement that was submitted for public consultation by the European Commission.
Apple committed to update the HCE architecture to align with evolving industry standards and to enable developers to prompt users to set up their default payment app with minimal clicks.
It also agreed to comply with industry-standard specifications, protect confidential information during audits and shorten dispute resolution deadlines, providing additional independence and procedural guarantees for the monitoring trustee.
