Norway gets world's first Apple Pay alternative for iPhone
A Norwegian firm has become the first to take advantage of the EU law that required Apple to allow Apple Pay rivals to use its iPhone NFC technology.
Tap to Vipps works exactly the same way that Apple Pay does -- image credit: Vipps MobilePay
As per the requirements of the EU's Digital Markets Act, Apple has been adding APIs to allow rivals to use its iPhone NFC in their digital wallet and banking apps. Now users of Vipps MobilePay in Norway can simply elect to use that service instead of Apple Pay.
"We have fought for years to be able to compete on equal footing with Apple," said Rune Garborg, CEO of Vipps MobilePay, in a blog post, "and it feels almost surreal to finally be able to launch our very own solution."
"This will now be a very exciting battle between the world's biggest brand and Vipps," continued Garborg. "Being the first in the world to offer an alternative to Apple Pay on iPhone is a huge achievement for us."
That battle will be to persuade users to switch from the default Apple Pay to Vipps. Garborg says that users will switch because of the benefits of being able to use Tap with Vipps whether they are customers of Norway's SpareBank 1, DNB, or over 40 other local banks.
"We believe that Vipps users find it advantageous to only have to deal with one payment app," said Garborg, "and finally have the opportunity to use Vipps in situations where they would normally use their plastic card."
The new Tap with Vipps service will reportedly work on all card payment terminals that accept BankAxept, Norway's national payment system. Vipps says it will be adding MasterCard and Visa support before the summer.
While Vipps is the first Apple Pay alternative to go live, there are other firms across the EU who are working to launch their own rival systems. Following the EU's demand that the NFC technology be opened to rivals across Europe, Apple has begun to bring the same option to developers in other regions, including the US.
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In non-payment related, iPhone NFC news, the Barcelona transport option (T-Mobilitat) will also be available for iPhones before year end, although Barcelona had to push this via the EU to get Apple to budge.
Apple can be bypassed completely (loosening its grip on Apple Pay, NFC revenues) but the option to remain 'all in' on Apple Pay remains should users choose to do that.
On the Android side, Google Pay is still unable to handle the dynamic CVV on my 'rechargeable' card in spite of me having reported issues for a couple of years now.
The solution? I use BBVA Pay and now never even consider Google Pay.
Choice is good.
I'm more curious what the user sees. Is it like having another card in your wallet, or can you not mix ApplePay and VIPS. Will banks still support ApplePay if they can switch to something that gives them more money. Will users have an option to use ApplePay if all banks move to VIPS?
There is information missing in this article.
Vipps was started by the largest bank in Norway, DnB.
DnB is still the largest shareholder in Vipps and have been actively working against Apple Pay since the launch of Apple Pay. To the point of buying smaller competitors and shutting down their Apple Pay features. Just do a search for Sbanken.
It might be construed as a win for some, but to me it’s just from one walled garden to another walled garden..
My bank says its app is the world's best mobile banking solution. There may be a chunk of marketing thought in that claim and I don't know all the alternatives but I'd rather competitors had the option to exist than not. If there is a surefire way to stifle innovation, it is by having the market closed off to just one player.
That was the case prior to this.
Only in the EU is it considered "equal footing" when the government hands you another company's hardware and IP to use free of charge. Maybe Vipps should have spent those years developing its own phone and VippsPay system? Little wonder that European economies are and have been in the toilet. I honestly wish Apple would just pull the plug on selling to Europe and "Let them eat Android."
https://www.justice.gov/opa/pr/justice-department-sues-apple-monopolizing-smartphone-markets
Point 4:
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Obviously it works in Norway and users use it. Choice now exists. That some local banks don't accept it is irrelevant. That is up to them. As it is across the globe.
That doesn't affect the new option of choice which didn't exist before.
How is it good for anyone but the bank? Choice for users.
If my bank offers its own wallet system, why should I be given the sole option of Apple Pay and know Apple takes a cut of every transaction?
That decision should be in the hands of the user. Now it is.
Will banks back away from Apple Pay? That isn't relevant to the reasons the EU imposed these changes.
Apple will have to compete. Innovate. Make customers want to use it and if they see their banks stop supporting Apple Pay then the users should vote with their, erm, wallets.
My response to Foregoneconclusion was not limited to Norway but the impact of the EU imposed changes.