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Tuesday, May 21, 2024
HomeNewsEuropean expansion relies on an innovative Nordic Fintech environment 

European expansion relies on an innovative Nordic Fintech environment 

Following a successful merger, Vipps MobilePay is ready to expand and strengthen its market position in the Nordic region. The initial focus is on Finland and Sweden, but soon the company will also set its sights on other European markets. This effort will heavily draw upon the experiences gained in the Nordic region. 

In the autumn of 2022, the EU Commission approved the merger between Danish MobilePay and Norwegian Vipps. Based on an agreement between Danske Bank and the consortium of banks behind Vipps in Norway, the two mobile payment companies have since embarked on a journey to create the best and most comprehensive digital mobile payment solution in Europe. The goal is to have a unified platform in place by the end of the year, and according to Rune Garborg, the CEO of the new entity, there will be significant synergy effects, both in terms of optimizing daily operational costs and, most importantly, in terms of future development strength. 

“There has been a quite extensive approval process. Now we have the time and resources to create an even stronger, faster, and more agile organization that can make life easier for both our private and business customers,” says Rune Garborg. He also emphasizes that the merger opens up possibilities for expansion, not only in terms of a strengthened presence in Finland, where Vipps MobilePay already have more than 2.5 million users, but also in relation to a completely new market like Sweden. Additionally, there are plans for further expansion into the rest of Europe. 

“When a Dane sees the MobilePay logo or a Norwegian sees the corresponding Vipps logo, it signals trust. Outside the Nordic region, the success of mobile payment solutions hasn’t been as substantial,”

Rune Garborg, CEO at Vipps MobilPay

Fintech environment thrives in the Nordics 

“We are pleased that the merger has finally been concluded, but it also means there’s no time to relax. On the contrary, we need to be sharply focused on both the further development of our existing services and the creation of entirely new ones, which will be done in close collaboration with the Fintech environment. In the past few years, we haven’t been good enough at looking beyond our own nose, so going forward, we need to become much better at keeping an eye on the innovative companies emerging on the scene. I can only recommend that these companies get in touch with us if they want to discuss collaboration,” continues Rune Garborg. 

Especially when it comes to expansion plans, both in the Nordics and the rest of Europe, he stresses the importance of being closely connected with local Fintech communities. This is the best ammunition in the competition against global tech giants in the mobile payment market. From a Nordic perspective, Vipps MobilePay is privileged to operate in a part of the world where both citizens and businesses are digitally mature. Furthermore, there’s a flourishing Fintech environment, and according to Rune Garborg, this provides an excellent foundation for the creative force needed to develop simple and powerful solutions. 

Users are our best ambassadors 

“At present, we have a total of 11.5 million users in the Nordic region, and they are our best ambassadors. Therefore, it’s important that we encourage them to provide feedback and comment on the user-friendliness of the solutions we develop. The close and local contact, as well as the region’s digital readiness, are crucial competitive factors for our expansion further into Europe,” explains Rune Garborg. He also sees collaboration with local partners as a significant factor. Additionally, he views close cooperation with regulatory authorities and a closer interaction between the private and public sectors as important. 

“As known, e-commerce continues to grow, and when a Dane sees the MobilePay logo or a Norwegian sees the corresponding Vipps logo, it signals trust. Outside the Nordic region, the success of mobile payment solutions hasn’t been as substantial, but we naturally hope that with our platform, which I won’t hesitate to call the best on the market, we can change that,” concludes Rune Garborg. Currently, the focus is on increasing efforts in the Finnish e-commerce market, and soon they will strategize for the Swedish market. But afterwards, they will truly start looking beyond the Nordic region. 

NFM Publishing Team
NFM Publishing Team
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