The arrival of the General Data Protection Regulation (GDPR) has significantly impacted how companies handle user data. While primarily a European regulation, its ripple effects have benefited consumers globally. One such benefit is Apple opening its Near Field Communication (NFC) technology to third-party developers, paving the way for the first true alternatives to Apple Pay on the iPhone.
Vipps, a Norwegian-based financial technology company, has become the first third-party provider to offer a tap-to-pay solution on iPhones. Currently, the service supports Norwegian banks, but expansion to other European payment providers is anticipated.
This shift in Apple’s policy comes amidst ongoing legal challenges regarding its alleged anti-competitive practices in regions like India and the European Union. However, this change has been in the works for some time and extends beyond Europe, allowing third-party payment apps globally.
Person tapping a contactless payment card on an iPhone.A user makes a contactless payment using a third-party app on an iPhone.
Users of the iOS 18.2 beta can already select a default contactless payment app, a feature expected to remain in the official release. While Apple Pay is a highly efficient payment method, increased consumer choice is always welcome.
Vipps plans to expand its service to Denmark, Finland, and Sweden next year. As the first to launch this type of app, Vipps is likely to be followed by other alternatives, potentially backed by banks and financial institutions, in the coming months.
Vipps’s entry into the iPhone contactless payment market signifies a significant development for consumers. With more choices available, users can select payment solutions that best align with their needs and preferences. This move by Apple fosters competition and innovation in the mobile payment space, ultimately benefiting users worldwide.
