Visa (NYSE:V) continues to push more deeply into the jungle that is fintech. The world’s dominant payment card processor has signed a deal with a Scandinavian company in the digital wallet sphere.
Through the arrangement, Visa said in a press release last week, “Visa’s clients and partners will now be able to take advantage of the Vipps platform to create their own digital wallets and offer customers new ways to pay, be paid and manage their money.”
This will apply to its cardholders in Europe; the company did not mention when and if the arrangement would be expanded to other parts of the world.
Neither the terms nor the price of the deal were made public.
Its timing seems appropriate. Contactless commerce — either via online purchasing or with specialty cards that don’t need to be swiped or read — has surged during the coronavirus pandemic. This has added momentum to an existing global migration to digital means of payment. In its press release, Visa said that more than 75% of payments made through its branded cards are contactless these days.
Vipps’ core product is an app that facilitates consumer payments; users can send and receive money to and from various sources. It launched in 2015, and according to Visa, currently has 85% market penetration. In its native Norway, it has 3.7 million users out of a total population of roughly 5.4 million.
“Today, the ability to pay digitally and make cashless payments in-stores, online, in-app, is no longer just a convenience but a necessity,” Visa quoted Antony Cahill, its managing director for European regions, as saying. “As the leading payment brand, we are keen to make sure consumers and businesses have access to secure, digital commerce, regardless of where they live or what mobile device they have.”