Vipps MobilePay Breaks Apple Pay’s Monopoly, Bringing Tap-to-Pay Competition to iPhones
In a landmark move that marks the end of Apple’s exclusive hold on NFC payments on iPhones, Norwegian mobile payment platform Vipps MobilePay has launched its contactless payment service, “Tap with Vipps.” The groundbreaking app allows iPhone users in Norway to tap and pay for goods and services at physical stores. This breakthrough comes after years of pressure from European regulators aiming to foster competition in the mobile payment landscape.
Opening the Doors to Alternative Payment Solutions
“Tap with Vipps” offers a comprehensive selection of features, surpassing the capabilities of traditional tap-to-pay systems. Users can send money to friends, make online purchases, and even pay organizations and associations. Similar to how PayPal and Apple Pay function individually, Vipps combines both functionalities, streamlining the payment experience for Norwegian consumers.
The launch of Vipps MobilePay signifies a pivotal moment for Apple and the mobile payments industry. For years, Apple Pay enjoyed a monopoly on NFC tap-to-pay on iPhones, limiting user choice and potentially stifling innovation. This new competition from Vipps challenges Apple’s dominance and could pave the way for other alternative payment providers to enter the market.
EU Pressure Pushes Apple to Open Up
The emergence of Vipps MobilePay was largely driven by pressure from European regulators, who challenged Apple’s exclusive control over NFC technology. In a bid to avoid a substantial fine of up to 10% of its global revenue, Apple agreed to open up its NFC technology to third-party developers. This consent agreement, reached in July, effectively ended Apple’s NFC monopoly and opened the doors for innovative payment solutions like Vipps.
Vipps MobilePay: A Promising Start with Room to Grow
While Vipps currently operates exclusively in Norway, plans are underway to expand its reach. The company is actively working on integrating support for more banks, with the goal of equipping users with even wider payment options. Additionally, Vipps is set to incorporate support for major credit and debit card networks like MasterCard and Visa before Summer 2025, further solidifying its position as a comprehensive payment solution.
Will Vipps Pave the Way for More Competition?
The success of Vipps MobilePay has set a precedent and shown the feasibility of competing with Apple Pay on iPhones. This development is likely to inspire other companies to explore similar NFC-based payment solutions, leading to a more diverse and competitive landscape for mobile payments. For consumers, this could mean greater choice, better features, and potentially reduced fees in the long run.
