World's First Apple Pay Alternative for iPhone Launches in Norway

Norwegian payment service Vipps has become the world's first company to launch a competing tap-to-pay solution to Apple Pay on iPhone, following Apple's agreement with European regulators to open up its NFC technology to third parties.

Starting December 9, Vipps users in Norway can make contactless payments in stores using their iPhones. The service initially supports customers of SpareBank 1, DNB, and over 40 other Norwegian banks, representing approximately 70% of Norwegian bank customers.

"We have fought for years to be able to compete on equal footing with Apple, and it feels almost surreal to finally be able to launch our very own solution," said Rune Garborg, CEO of Vipps MobilePay, in a statement on the company's website.

The launch follows the European Commission's July 2024 acceptance of legally binding commitments from Apple to open its mobile payments system to competitors. Under the agreement, Apple must provide free access to iPhone NFC functionality for third-party mobile wallets and allow users to set alternative payment apps as their default option.

Vipps' solution currently works with terminals that accept BankAxept cards, Norway's national payment system, covering more than 90% of payment terminals in the country. The company plans to expand support for Visa and Mastercard cards in the coming months, enabling worldwide payment capabilities before summer 2025.

The service allows users to make payments by holding their iPhone near a payment terminal, with authentication via Face ID, Touch ID, or device passcode. iPhone users can set Vipps as their default payment app and activate it by double-clicking the Side button, just as they would if they were using Apple Wallet and Apple Pay.

Vipps MobilePay, which emerged from a merger of Vipps from Norway and MobilePay from Denmark, plans to extend the tap-to-pay solution to Denmark, Finland, and Sweden in 2025, potentially paving the way for similar implementations by other payment providers across Europe.