“The opportunities to finally export Norwegian Fintech to the world have never been greater”

But “Stor-Vipps” plays an important role when they plan to go straight to the throat of global favorites like Klarna, write Cicero Consulting analysts Stefan Astroza and Elisabeth Solberg.

Elizabeth
Solberg

Analyst at Cicero Consulting

Vipps enters into a partnership With MobilePay and Pivo, where the goal is to become more competitive in the European payment market, the e-commerce battle must be won. But even with 11 million users, there is still a long way to go for European success.

In 2020 traded We Norwegians online over NOK 156 billion, Nets annual e-commerce report shows, and the number for 2021 is expected to be even higher. Buoyed by the pandemic, e-commerce is gaining momentum, and many payment providers have seen an adventurous development. So it is not difficult to understand that the new “Stor-Vipps” will engage in full force, As Shifter mentioned recently.

Use «Purchase Now, payment solutions are later ‘highlighted’ as a key element. This type of payment solution continues to grow and challenges traditional credit cards in a number of ways. In Australia, the proportion of consumers with credit cards has steadily declined over the past four years, while the use of ‘Buy Now’ solutions is seeing ‘Pay Later’ online shopping is growing strongly. The development is being driven particularly by younger consumers.

Although it It will take a long time before a credit card will be paid in this country, so postpaid and mobile payments are becoming more and more popular. A recent survey from Norges Bank showed that up to 54 percent of Norwegians paid with a debit card the last time they shopped online. But it is interesting to note that 23 percent answer deferred payment with a bill, while 15 percent answer a mobile payment solution.

Vipps must fight To become the customer’s preferred online payment option from a longer perspective, here they are facing stiff competition from both established payment solutions and new players who have launched easy-to-use “buy now, pay later” solutions, with Klarna at the fore.

become Klarna One of the major global competitors and they are investing heavily in the “Social E-Commerce” segment. The plan is that a “buy now, pay later” solution will form the basis, while the shopping experience with Klarna is packed with social shopping experiences, price comparison and loyalty programs. Through numerous acquisitions and investment rounds, Klarna has grown into the most valuable FinTech company in Europe.

In addition to It is very easy to pay with ‘buy now, pay later’ solutions, so it can be very beneficial for consumers to get the item first and pay later. With Klarna’s solution, you pay nothing until you receive the item and decide to keep it. All in-app purchases are collected and the user is notified when it is time to pay. In the event of faults or defects in the item, the user can contact Klarna to stop the payment. So it offers the simplification that Vipps is known to want to offer.

Many others report And global players like Paypal, Afterpay and Affirm are taking their positions. According to Bloomberg, Apple Pay is also planning to launch an “Apple Pay Later” service, in collaboration with Goldman Sachs – who will be the lender. The service isn’t tied directly to an Apple credit card, but it will help increase adoption of Apple Pay, Apple’s mobile payment solution, and get more people to use the iPhone to pay for products and services instead of using a standard payment card.

medal back Admittedly, you can use these postpaid solutions for free only if you are already paying before the payment is due. Thus, shopping with debt can lead to them falling into the temptation and shopping for a little more than they can actually afford. With the accrued interest, these services can increase the number of people who are having trouble paying. The fact that these players are contributing to debt problems is an issue that Vipps must consider if they choose to compete with Klarna and other players in this market. In Sweden and England, politicians and organizations have looked at the forward-looking market with critical eyes. This has caused concern and led to a tightening and increase of control in the payment area of ​​the two European countries.

European payment struggle Already in full swing. The European Payments Initiative (EPI) is a constellation of 31 European banks and two third parties who have joined forces with the goal of creating a payment solution tailored for Europe – for use both online and in physical stores. At first glance, it may seem like an impossible task to outsell a massive investment that banking giants like BBVA, BNP Paribas and Commerzbank can boast of on the team. But maybe this is exactly the “Stor-Vipps” feature? It’s big enough to keep up with the technological struggle, yet small enough to be adaptable and doable on paper.

It is anyway Big difference in shaping local environmental protection to keep global players away from their home markets – as was the case with the Friends Payments campaign. Stor-Vipps plays away when they plan to go straight to the throat of a world favorite like Klarna. Although it’s a tough battle to win, I’m still happy that the company’s main focus appears to be on its core business – rather than testing pilot investments in entirely new industries.

The odds are good It was never too old to finally be able to export Norwegian Fintech to the world.