Visa is teaming with Norwegian digital-wallet company Vipps on a new initiative to boost mobile payments in Europe, according to a report from Cards International.
With the new strategic partnership, Visa clients can use Vipps' platform to make digital wallets and offer diverse ways for customers to pay and be paid.
Over 75 percent of Visa payments in Europe have become contactless due to the pandemic, the report stated. In June, there was more than a 25 percent jump in eCommerce transactions.
Antony Cahill, managing director for Visa's European operation, said that proved that digital transactions have become a necessity rather than just another option.
“Our partnership with Vipps will make it possible for our bank partners to develop and create easy to use digital payment products and wallets, meeting the growing demand for contactless, online and mobile payments,” he said, according to Cards International.
Vipps, launched in 2015, has now reached 3.7 million users in Norway, or 85 percent penetration, the report stated. Transactions have jumped 145 percent over the last year. CEO Rune Garborg said working with other companies is one way the company could keep improving.
"We believe a collaboration between Visa, the world leader in digital payments and Vipps, the world’s most successful bank-backed wallet, will create magic," Garborg said, according to the report.
"Together we are enabling issuing banks to offer smarter and simplified digital payment services to their customers in Europe and beyond. Together with Visa we will use our best practices, expertise, and experience, to create services that will excite people through world class simplification.”
Kevin Phalen, Visa's head of Global Business Solutions, told PYMNTS last month that the pivot to digital isn't surprising given the gravity of the situation and the need to stay in business. But he said it is surprising how optimistic many small business owners are as the world slowly begins to come out of lockdowns.
He said a survey showed 75 percent of responding business owners are feeling good about their chances, while taking measures to ensure safety.