Vipps challenges Apple Pay as Norway's first alternative payment app
- A Norwegian mobile payment app called Vipps has launched tap-to-pay functionality on iPhones, becoming the first third-party app to do so.
- This change is due to new EU regulations that forced Apple to allow other payment developers access to the NFC chip in iPhones.
- The emergence of Vipps indicates a transition towards increased competition in mobile payments, which was previously dominated by Apple Pay.
In Norway, a significant shift in mobile payment options has occurred as the payment app Vipps has become the first third-party application to provide tap-to-pay functionality on iPhones. This breakthrough comes as a result of Apple’s commitment to make its NFC chip accessible to third-party developers following increased scrutiny and pressure from EU regulators. The move marks a pivotal change in the mobile payment landscape, which until now was monopolized by Apple Pay. iOS version 18.1, released recently, facilitates this change, allowing users to conduct tap-to-pay transactions and online payments through Vipps while setting it as their default payment method. The introduction of Vipps aligns with the broader regulatory push within the European Union aimed at fostering competition in the technology sector, particularly regarding Apple's market practices. EU authorities had previously indicated that Apple Pay's exclusivity on iOS devices was anti-competitive, which prompted Apple to make alterations to its closed system. The newly adjusted iOS framework now presents opportunities for various third-party payment applications to coexist with Apple Pay, thereby enhancing consumer choices. This development is noteworthy not only for the immediate benefits it provides to Norwegian consumers but also for the potential it holds for driving innovation in mobile payments on a broader scale. As the new open framework is tested, there are concerns about the possibility of fragmentation in the payment ecosystem. If multiple payment platforms emerge without the ability to effectively cooperate, users could face complications with payment options, such as compatibility issues and varying security protocols. Consequently, while Vipps's launch on iPhone is a progressive step towards greater consumer choice and competition, it poses questions about how various platforms will work together in the future. This pivotal change represents a significant moment in mobile financial technology in Norway, setting a precedent that could influence how other markets approach similar regulatory challenges and opportunities for innovation.