Vipps MobilePay is well on its way to becoming the largest platform for mobile payments, not only in the Nordic region but throughout Europe. The competition is tough, but CEO Rune Garborg looks forward to what he calls “a battle between giants.”
“From my perspective, there is no doubt that the competition in the mobile payments market will intensify over the coming years. I believe, among other things, that Apple will ramp up its efforts significantly, but I am actually looking forward to a more competitive situation. Since the merger between Denmark’s MobilePay and Norway’s Vipps in 2022, we have become so much stronger and grown rapidly.”
So says Rune Garborg, CEO of Vipps MobilePay, and even though the competition will get tougher, he expects the company to show a profit by 2026 at the latest. He is, in fact, looking forward to the heightened market competition, which he calls “a battle between giants.” It may seem like bold and grand words when it comes to competing with global tech giants, but he is convinced that the company now has a position that makes it possible.
“We are ready to compete in what I would call the Champions League of the mobile payment world.”
Rune Garborg
CEO at Vipps MobilePay
The Champions League of the mobile world
“With a Nordic platform, where we have now opened up for payments across Denmark, Norway, Finland, and soon Sweden, we are ready to compete in what I would call the Champions League of the mobile payment world. We already have a very strong position in Denmark and Norway, while there is great potential for further growth in Finland, and the same goes for Sweden,” explains Rune Garborg.
Currently, Vipps MobilePay has not yet launched in Sweden, but he expects the launch of the new crossborder payment option will also help open up this market. He sees a single, unified Nordic platform and, not least, payments across borders as two of the strongest parameters in competing with international and global players among the tech giants.
Recommended: Explore the Future of Finance at Nordic Fintech Week
Feeling privileged in the competition
“It’s simply about reaching a critical mass of users, and I feel we are well on our way. At the same time, it is important that we are local and closely connected with the banking world. This builds trust among our customers, which is important not only when we talk about private customers but also when we talk about businesses. This is an area we are also going to invest heavily in, so I actually feel we are quite privileged in our market position,” Rune Garborg explains.
He sees the mix between private users and business users as a strong competitive parameter that can and should significantly help spread awareness of the services and offerings Vipps MobilePay provide. Rune Garborg adds that if the company also succeed in the Swedish market, it could eventually become the largest mobile payment platform in Europe.
Recommended: Explore the Future of Finance at Nordic Fintech Week
Finally, competition is going to be free
Since June 2024, when payments were opened up across Denmark, Norway, and Finland, the number of transactions has exceeded expectations. Vipps MobilePay had an expectation of 1,000 daily payments across border, but after just two months, they reached 65,000 payments, and now Sweden is also going to be included in the arrangement. Meanwhile, in 2024, there was positive news that the EU Commission reached an agreement with Apple, allowing other wallets besides Apple Pay to be used for contactless payments on iPhone.
“This is a milestone and a big victory after years of fighting for free competition in the mobile payments area. It is important for us to be present in all payment situations including in stores, and now we finally have the opportunity to launch an in-store payment solution that will simplify payments for our users. Our ambition is to be the leader in contactless payments in the Nordic region, and we are working hard to build a user-friendly and cost-effective solution,” Rune Garborg concludes.
