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The story of Vipps

In 2014 a project team was established in the Norwegian bank DNB. The goal was to launch a P2P payment solution in the market. The target group was all Norwegian inhabitants with a Norwegian mobile phone number, a Norwegian payment card and a Norwegian bank account. We wanted to deliver a service that was as simple as sending SMS, and which everyone could use anywhere, anytime and independent of who you bank with.

Vipps was launched 30th of May 2015 and instantly became a huge success. In the first year, 1M consumers had Vipps before the year end. Over 80 % was satisfied with the solution and the brand was recognized by more than 80. Today, Vipps is used by over 75% of the Norwegian population and offers a much broader set of simplified payment solutions like POS and e-commerce payments, letting people pay their electronic bills and check their account balance. Through the merger with BankID in 2018, Vipps is now also offering a highly successful federated eID used by over 90 percent of the population. Vipps is continuously evolving along the lines of excite people every day through world class simplification.

Some of the key insights we found was the following: consumers were most in need for such a service on Fridays after 21:00 because they were social with friends, family or with colleagues. We knew that the consumers didn’t carry neither cash or an e-ID dongle, so the product vision was: “Sending money in 2014 should be as simple as sending SMS.”


Exciting people every day through world class simplification

Vipps instantly became a huge success. In the first year, 1M consumers had Vipps before the year end. Over 80 % was satisfied with the solution. The brand was recognized by more than 80 %, so the next question was where to focus?


Two areas that had huge potential for simplification was:

- Smaller merchants, sports clubs and associations that previously took cash for offering their products and services

- Digital commerce due to the cumbersome process for both merchants and consumers

So Vipps chose to simplify the payment processes for smaller merchants, sports clubs and associations because the potential was great, and the user habits was already established in sending P2P transactions to friends, family and colleagues. It was easy for both consumers and merchants to adopt this way of doing payments. Today, Vipps offers a much broader set of simplified payment solutions like POS payments, letting people pay their electronic bills and check their account balance. Vipps is continuously evolving along the lines of excite people every day through world class simplification.

In addition to our focus on making the mobile payment app even better we are continuously working to get Norway even more digitized by offering the electronic ID; BankID for financial and public sector, making electronic authentication and digital signatures even more easy. In the field of electronic ID, we see high attention in Europe and around the world right now. In Norway we have probably managed to create the most successful payment and ID-services in the world, and we believe it is possible to create similar successes also in other parts of the world.

The successes of the Nordic services on payments and electronic identification have been possible through a model of collaboration. Through collaboration between banks on common infrastructure and services, common ownership and with good support from the government, services like BankID, an electronic ID used across financial, and public sector has led to nationwide usage and contributed to a highly digitized society. The same goes for Vipps, a mobile payment app now used by over 75 % of the population, working seamlessly across banks and with Norwegian banks as owners. This model of collaboration has set the standard in the Nordic countries but not necessary in other geographies. The main challenges in other geographical areas is first to promote this way of thinking, in order to pave the way for financial services as successful as in the Nordic countries, leading to nearly cashless and highly digitized societies.

Magic of collaboration

Vipps is open to co-operate and partner up with players with a collaborative mindset and that share our focus on simplification. We were recently partnering up with Alipay to make it easier for Chinese tourists to pay on their vacations in Norway and by this create a better offer for our merchant customers. Through this partnership we are also looking into how to create interoperability throughout Europe on inStore mobile payments using QR-codes. In October 2018, Vipps entered into a strategic agreement with Gemalto, the world leader in digital security, to provide a secure digital turnkey solution for QR and NFC proximity payment as well as e-commerce. The new solution aims to provide secure payment services to retailers, private label issuers and domestic schemes across the world. In addition, Vipps is highly positive to partnering up with other players abroad, like governments in order to fulfil our mission on exciting people every day through world class simplification. By enabling more efficient digital and cashless societies, we believe this will contribute to economic growth and better financial inclusion.

Successes

The mobile payment app Vipps was launched in 2015 and have within four years managed to create a 75 % market penetration. In June 2018, Vipps, BankID og BankAxept merged to create the leading company within ID and payments in the Nordic region. BankID has now over 90 % marked penetration, an electronic ID used across banks and public sector for electronic authentication and digital signatures. BankAxept was launched in 1991 and has managed to create a leading position within card payments, covering over 80 % of all card transactions in Norway. With these three successes, Vipps AS is today an unique combination of mobile payments, ID and payments infrastructure, not only in Norway, but also by worldwide standards.