Nordic payments processor Nets has entered into a 3-year partnership with Vipps, a mobile payment application provider in Norway, to deliver instant P2P payments to customers of all Norwegian banks partnered with Vipps.
Users of Norwegian bank, DNB, primary stakeholder of Vipps, are already benefiting from instant payment transfers enabled by Vipps’ payment app, according to an announcement.
The partnership with Nets will extend this real-time payment service to customers of the other 100 banks in the country partnered with Vipps, representing 40 percent of the total user base of the mobile wallet.
“Using the common infrastructure for instant payments will eventually make it possible to transfer money in real-time for consumers in all Norwegian banks,” says Rune Garborg, CEO of Vipps. “In this first phase, the 100 banks involved in the Vipps partnership will have this opportunity. When making this agreement, it was really important for us to find a partner with experience and credibility regarding the processing of payment transactions in Norway.”
Both parties have already begun adjustments to their systems to make the service available in the popular mobile wallet, with real-time payments expected to go live for some of Vipps’ additional bank partners before the end of the year.
The real-time payments push is a global phenomenon, following the success of Faster Payments in the U.K. Dozens of countries and even more technology and financial services providers are looking to enable real-time consumer and corporate payments. In the U.S., the Fed recently set an ambitious goal of real-time payments being widely available by 2020. A recent Ovum report found that a majority of banks view immediate payments—yet another name for real-time payments or instant payments—as a key revenue driver.
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