“In payments, you’re choosing between water and water.” If wallets are commoditized, what creates a competitive advantage?
In our latest podcast, Rune Garborg explains why the future of wallets depends on building daily relevance and real FOMO.
Do not hesitate to reach out to Elisabeth Magnor, Elisabeth@Flagshipap.com, with any comments or questions.
Listen to the latest episode on the following platforms:
Transcript
Elisabeth Magnor:
First of all, it’s really nice to meet you — and thank you for taking the time to speak with us.
I’ve worked in fintech for about ten years, but I’ve also been a Vipps user for more than a decade. So I have the benefit of knowing your company both from the end-user perspective and from the broader fintech ecosystem. I’m very interested in the developments taking place.
Most people know you as the CEO of Vipps MobilePay, but could you start by introducing yourself a bit more?
Rune (Vipps MobilePay):
Of course. I’ve worked for many years in banking. I actually started out building loyalty programs at DNB, the Norwegian bank — and it’s still fun to see that some of those programs are still in place today.
I then served as Marketing and Product Director at DNB for many years. The Vipps journey began as one of nine new products in our marketing plan for 2015.
So for the past ten — soon eleven — years, I’ve been working with Vipps. It’s been quite a journey. My background is mainly in marketing and communication, but over time I’ve also learned a great deal about technology and the payments space.
Elisabeth:
It must be an exciting time to be Vipps MobilePay right now.
There are two major themes we’re seeing emerge. One is the launch of your NFC wallet — which is the main focus of this interview. The second is the broader European topic of interoperability between Vipps MobilePay and other wallet initiatives across Europe.
But let’s start with NFC. We’ve followed Vipps and MobilePay closely for years, and we often highlight you as leading case studies because you’ve consistently been ahead of the market.
Now, with the NFC wallet launch, you’re expanding more directly into in-store payments. What were the main drivers behind that shift — and how much was this enabled by Apple opening access to NFC? The Move Into In-Store NFC Payments
Rune:
First of all, I think payments is one of the most exciting industries you can be part of.
If you go back 15 years, payments weren’t seen as particularly interesting within banking. That has changed dramatically — largely because of data. Customer data is now central, and today the competition isn’t just between banks. You’re competing with some of the world’s largest brands, many of whom are in it for the customer interface and the data.
Vipps MobilePay started as a peer-to-peer solution. That was our growth engine and how we built the brand. But that was never the end state — P2P is expensive to offer, and it’s free for consumers.
From there, we expanded into e-commerce. Moving a brand from P2P to P2B is harder than it seems, but it was a crucial step.
Even back in 2016–2017, we were already discussing NFC and in-store payments. If you want to be a true wallet — present in every payment situation — you need to be in-store. Around 75% of transactions still happen in physical retail.
And strategically, your position in-store affects your position in e-commerce as well.
Elisabeth:
How much of this was driven by Apple opening NFC access?
Rune:
It was foundational. We tried to compete without NFC. We made serious attempts using QR codes. QR codes work very well in certain contexts — sports clubs, restaurants, donations — where they create a seamless experience.
But at the payment terminal, QR codes simply aren’t competitive. Even a few extra seconds matters.
We invested tens of millions into QR-based terminal payments, and the market share ended up at just 0.09%. It was one of our biggest mistakes. It proved that if it isn’t simple enough, it won’t work.
Without NFC access, competing on equal terms was impossible. Competing With Apple Pay
Elisabeth:
What are your ambitions in physical retail? Is the goal to become the number one payment method?
Rune:
In every payment situation we enter, the ambition is to become number one.
But in-store is demanding because Apple already has a strong position. And we’re not simplifying the payment experience compared to Apple — it’s essentially the same tap-to-pay experience.
So the key question becomes: why should consumers choose Vipps MobilePay instead of Apple Pay?
Right now, only about 25% of payments in Norway are made via mobile wallets. Around 75% of the market hasn’t fully transitioned yet. Many people still use plastic cards — but younger consumers are already leaving their cards at home.
That shift from plastic to mobile will happen quickly. Within a few years, we’ll see who becomes the leading player.
To win, we need to add value beyond payment.
Beyond Payment: Loyalty and Added Value
Elisabeth:
I’ll admit — I still haven’t switched from Apple Pay to Vipps in-store. Apple Pay works well, and switching defaults feels like effort.
How do you plan to convince people like me?
Rune:
That is the main question for us right now.
Competing with one of the strongest brands in the world is challenging. Trust and brand strength matter — and we are well positioned in our markets — but that’s not enough.
We need to offer services beyond payment. Consumers need to feel they’re missing out by not using Vipps MobilePay daily.
It could involve loyalty programs — many players like Klarna, Revolut, and Curve are doing that. But it could also be other forms of value tied to transactions.
The default wallet is hard to displace, so the offering must be truly compelling.
Adoption So Far
Elisabeth:
You launched NFC payments in late 2024 with BankAxept, but adoption was limited because not everyone wanted to pay with debit cards, and not all merchants accepted the scheme.
That changed in October 2025 when you added Visa and Mastercard compatibility. What can you share about adoption so far?
Rune:
We now have more than one million users signed up for the wallet. Not all are active yet, but adoption is accelerating.
Within 24 months, we expect at least 50% of Norwegians to use mobile payments as their primary in-store method.
The biggest change is that it now works everywhere — globally — which removes a major barrier.
Competition From Klarna and Others
Elisabeth:
Apple opening NFC also enables competitors like Klarna. How do you stack up?
Rune:
Our position is extremely strong because we have scale — 13 million of users across Norway, Denmark, and Finland.
In Denmark and Norway, nearly everyone uses us. Consumers also value having transactions in one place, and trust in the brand matters.
That gives us a strong foundation.
Pan-European Interoperability and the Future of Wallets
Elisabeth:
Let’s shift to interoperability. Vipps MobilePay is part of the EuroPA Alliance, alongside wallets like Bizum, Blik, and others. How does this align with your ambitions?
Rune:
Our main focus is making it easy to pay across Europe — especially P2P.
Sending money from Norway to Spain or Italy should eventually be as easy as sending money within the Nordics.
We hope interoperability between European wallets will happen as early as this summer.
In the long term, I believe wallets will consolidate. Europe will need strong alternatives to Apple, PayPal, and Revolut.
Schemes vs Wallets: Whose Side Are You On?
Elisabeth:
Many European initiatives aim to compete with global schemes like Visa and Mastercard. Vipps, however, relies heavily on global card rails today. How do you balance that?
Rune:
It’s a very good question.
We want merchants to have low-cost payments — local rails like BankAxept are extremely important.
But for us, the most strategic asset is the customer interface. That’s where the competition is.
We need both: low-cost infrastructure and global acceptance. The goal is orchestration — combining scalability with affordability.
Looking Ahead
Elisabeth:
Fast forward to 2029. What developments from the next few years will stand out most?
Rune:
The rise of services beyond payment.
Payments will no longer be just about the transaction. New products and services will create excitement, and margins will increasingly come from those layers — not from the payment itself.
Elisabeth:
What excites you most about the future?
Rune:
The competition. We’re competing against the strongest brands in the world — and we believe we can win.
The changes are happening quickly, and the wallet experience will become much more than just tapping to pay.
Elisabeth:
Thank you so much, Rune. It was a pleasure speaking with you.
Rune:
Thank you very much.
