Taking a bite out of Apple: Vipps launches as world’s first Apple Pay rival on iPhones

In a groundbreaking development, Norwegian payment service Vipps has become the world's first alternative to Apple Pay on iPhones.

Until now, tap-to-pay services on iPhones were locked down and exclusively owned by Apple, making them the only player. However that has changed and Vipps may just be the start to many other Apple Pay rivals entering the scene. 

This development comes in response to European Union (EU) regulations that compelled Apple to open its Near Field Communication (NFC) chip to third-party apps. 

The EU's Digital Markets Act, aimed at increasing competition and consumer choice, forced Apple to allow other developers access to its NFC technology, ensuring a level playing field for banks and payment providers, which had long criticized Apple for restricting NFC access.

"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 blog post marking the announcement on Monday, December 9.

"Being the first in the world to offer an alternative to Apple Pay on iPhone is a huge achievement for us," continued Garborg

Vipps currently serves about 70% of Norwegian banking customers and operates through Norway’s BankAxept payment network, which covers 90% of the nation’s payment terminals. 

The company has plans to expand its functionality in the next few months, including support for Visa and Mastercard, and aims to roll out services across other Nordic countries like Denmark, Finland, and Sweden by 2025.

It is likely that this kind of move will be limited to Europe for a long time, however, it is a great highlight of the growing influence of regulations like the Digital Markets Act in curbing monopolistic practices in the tech industry while empowering local players to innovate.

The success of Vipps may pave the way for similar alternatives in other regions.

IOL