Apple has been the sole monopoly in the digital wallet space for a long time, but the changes this time are driven by the EU's Digital Markets Act. They are opening the door for competitors.
In a historic turn of events, Norway's Vipps has become the first company to take advantage of this law as its app now works with the iPhone's NFC technology. Here is everything you should know about this change in the digital payment landscape.
The Digital Markets Act: Opening the Door for Competitors
The Digital Markets Act, enacted by the EU to regulate the dominance of big tech companies, compelled Apple to open its NFC technology for third-party apps. As a result, Vipps, a rival, was able to create an alternative to Apple Pay that is available to iPhone users, MacRumors discovers.
The legislation is designed to promote competition and provide users with more options for digital wallets.
"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," Rune Garborg, CEO of Vipps MobilePay, said in a blog post.
Vipps Leads the Way in the Fight Against Apple Pay
Vipps MobilePay is the first digital wallet service to be integrated with iPhone NFC technology, and thus, users can now avoid using Apple Pay.
According to Garborg, a Vipps representative, this is the first time the company has made such a milestone. For him, being the first in the world to roll out an Apple Pay alternative on the iPhone serves as a huge achievement for the company.
How Vipps Beats Apple Pay
The integration with Norway's local banking system is one of the major advantages Vipps has over Apple Pay. A user of Norway's SpareBank 1, DNB, or over 40 other local banks can enjoy the use of Vipps as his one-stop wallet.
According to Garborg, the reason simplicity of having all of one's transactions in one app is persuasive to customers. And with the convenience of Vipps being used everywhere one would traditionally use a plastic card, many a customer base is sure to win over.
Vipps' Expansion Plans: Adding Visa and MasterCard Support
Currently, Vipps is in operation with all card payment terminals that accept BankAxept, Norway's national payment system. However, the company has plans to extend its support to major credit card networks.
By summer, Vipps will introduce support for MasterCard and Visa. This will expand its reach and functionality. Vipps will then become even more competitive than Apple Pay, which already supports these two payment networks.
Other Competitors Getting Ready to Launch
Although Vipps is the first to take advantage of the new rules of the EU, it is not the only company that has ambitions, Apple Insider reports. Other companies in the EU are developing their own payment systems that will compete with Apple Pay.
After introducing NFC access in the EU, Apple has started offering the same option to developers in other regions, such as the US. That would mean a lot more competition for the digital payment landscape, and probably further pressure building up on Apple Pay as new entrants like Vipps make their way to the market.
