The Rapid Decline of the Plastic Card
The physical wallet is undergoing a fundamental transformation. For years, we witnessed the slow fade of cash, but the transition from plastic cards to mobile wallets is happening at a significantly faster pace.
Industry leaders are seeing clear signals that the plastic card is becoming redundant. According to Rune Garborg, CEO of Vipps MobilePay, there is little doubt that plastic cards are disappearing more quickly than cash did. This shift is driven by the seamless integration of payment solutions directly into the devices we already carry everywhere.
The adoption of mobile payments in the Nordics has skyrocketed. In 2023, only 15% of residents paid via mobile; by 2025, that number climbed to 50%.
The data from major financial institutions supports this trend. DNB reports that as of March 2026, 25% of all physical retail purchases were made via contactless digital wallets—a significant jump from just 13% in March 2022. Similarly, SpareBank 1 has seen mobile tapping reach approximately 30% of in-store payments.
The Battle for the Smartphone Wallet
For a long time, the mobile payment landscape on iPhone was a closed ecosystem. However, a pivotal shift occurred in 2024 when the European Union pushed Apple to open its NFC chip to third-party developers. This opened the door for competitors to offer “tap to pay” functionality on iOS.
Vipps seized this opportunity by launching a direct alternative to Apple Pay. This move wasn’t just about convenience; it was a strategic strike to allow consumers to choose their preferred payment solution. While Apple Pay maintains a lead due to its early market entry, the competitive landscape is shifting.
Vipps vs. The Global Giants
The growth of “Tap with Vipps” has been aggressive. The service has already surpassed 100 million in-store payments, with over one million Norwegians activating the tapping feature. While Apple Pay remains the most popular for in-store use, Vipps has successfully overtaken Google in terms of market share in this segment.
Vipps has established itself as the most widely used digital wallet for e-commerce, demonstrating that while global brands dominate the hardware, local and regional solutions can dominate the user experience.
Beyond simple store payments, modern mobile wallets now allow you to handle subscriptions, recurring payments, and even settle group costs for dinners or getaways, all within a single app.
Expanding the Digital Ecosystem
The evolution of mobile payments is moving toward total interoperability. Vipps has expanded its utility by integrating BankAxept in Norway, followed by Visa and Mastercard. This ensures that mobile tapping works across all payment terminals, both domestically and internationally.
The ambition now extends beyond the Nordics. Through the merger of Vipps and MobilePay, the entity now serves Norway, Denmark, and Finland. To further this reach, Vipps signed a letter of intent to join the European Payments Alliance (EuroPA), an initiative aimed at providing interoperable mobile payment solutions across Europe.
This trajectory suggests a future where a single digital wallet can seamlessly navigate different currencies and national banking systems, further removing the need for physical cards when traveling.
Frequently Asked Questions
What is required to use Vipps?
To use the service, you need BankID, a Norwegian or Swedish phone number, a compatible bank card and account from Norway or Sweden, and an email address.
Can Vipps be used outside of Norway?
Yes. With the integration of Visa and Mastercard, Vipps can be used in payment terminals both in Norway and internationally.
How does “Tap with Vipps” differ from traditional app payments?
Unlike sending money to a phone number, “Tap with Vipps” uses NFC technology to allow users to tap their phone at a contactless POS terminal, mirroring the experience of using a physical card.
Are you still carrying a plastic card?
We seek to hear from you. Have you fully switched to mobile payments, or do you maintain a card as a backup? Share your experience in the comments below or subscribe to our newsletter for more insights into the future of fintech.
