Norway’s Vipps Mobile Pay has officially launched a tap-to-pay service for iPhone users, marking the arrival of the first true competitor to Apple Pay on iPhones. This move, enabled by the European Union’s Digital Markets Act (DMA), has brought a dramatic shift in the mobile payment landscape. Prior to this, Apple Pay had a decade-long monopoly on contactless payments via iPhone’s NFC chip. However, following a ruling from the European Commission in July 2024, Apple was compelled to open its NFC technology to third-party apps like Vipps.
According to The Verge, the launch on December 9, 2024, follows Apple’s commitment to open up its iOS ecosystem, allowing Vipps users to make tap-to-pay transactions directly on their iPhones, even setting it as the default payment option. This transition to a more open environment is part of Apple’s efforts to comply with EU antitrust regulations, which deemed its exclusive control over NFC technology anti-competitive. This ruling is part of a broader push to dismantle monopolistic practices in the tech industry, particularly in digital payments.
Vipps, formed from a merger of Norway’s Vipps and Denmark’s Mobile Pay in 2022, is now positioned to challenge Apple Pay with features tailored specifically for the Norwegian market. The app integrates seamlessly with over 40 local banks and allows a broader range of financial activities such as bill payments, money transfers, and even peer-to-peer transactions. Unlike Apple Pay, which primarily focuses on payments, Vipps provides an all-in-one platform with functions that go beyond traditional tap-to-pay services.
Despite its promising start, the success of Vipps in Norway is uncertain. Experts have expressed that while the app’s deep integration with local banking systems could be a significant advantage, it remains to be seen whether users will fully embrace it, especially when Apple Pay has already established itself as the default payment method. Additionally, Vipps is expected to expand to support international cards like Visa and Mastercard by mid-2025, which could further bolster its competitiveness.
As Vipps challenges Apple Pay in Norway, other European nations may follow suit, potentially leading to a wave of new payment solutions for iPhones. Regulatory bodies will likely continue to monitor these developments closely, ensuring that the competitive balance remains fair.
For now, however, the rivalry between Vipps and Apple Pay stands as a pivotal moment in the digital payments arena. It will be fascinating to watch how this competition shapes the future of mobile payments in Europe and beyond.
