Tens of millions of payments are made each year through SMS as a channel (such as LINK Mobile Invoice), typically for fundraising campaigns, parking, and the purchase of electronic content that requires immediate response. Until now, the amount has been charged to the phone bill. The new solution, SMS2Vipps, is similar. It starts with sending an SMS with a password to a 5-digit telephone number and receiving a reply with a link that you press. Instead of the purchase being charged to the mobile bill, you are moved to Vipps where the service is paid for.
With Vipps, it’s easier to distinguish between work and private since the amount is deducted directly from the employees’ accounts or cards. Some companies block SMS payments on subscriptions, but Vipps is not blocked, meaning it will be used more now.
“We build a bridge between traditional SMS and today’s mobile payments and give people the opportunity to use Vipps in even more situations. For many businesses, SMS is an effective communication channel that reaches people immediately. By connecting to Vipps, over 3.7 million ‘Vippsers’ get better control over all their purchases using the same easy way to pay as they are used to,” says Vegar Heri in Vipps.
“Vipps is significantly cheaper than traditional SMS payment – prices are up to 80% cheaper per transaction. In addition, it can take up to 45 days before payment is made using SMS. With the new solution, settlement will take place immediately. The companies get a more cost-effective solution with faster settlement. This contributes to better liquidity for the companies,” says Ina Rasmussen, COO of the Nordics, in LINK Mobility.
Vipps AS is the leading provider of smart payments and electronic ID in the Nordic region. The company is owned by over 110 Norwegian banks and offers a wide range of solutions within payment and electronic ID. Over 80% of Norway’s population uses Vipps, creating international attention. The company also offers universal uses for signing and identification online across the private and public sectors through BankID. Vipps’ formula for success is enthusiasm for simplification. For more information, please go to their website.