Vipps Mobilepay’s first full financial year after the merger with Danish Mobilepay was last year. The loss then increased by 106 million, compared to the two companies’ respective results in 2022.
This leads to a total deficit of 1.09 billion, write the banking newspaper Bankshift and E24.
Increased income, but large expenses
Revenues did indeed rise by 31 per cent, equivalent to DKK 292 million, last year.
“We have been through a year of consolidation where we have built a new platform, while at the same time operating each of our platforms in parallel. That leads to very large costs,” says Vipps Mobilepay manager Rune Garborg to BankShift.
He points out that at the same time the company had a growth of 36 per cent in online shopping, which was “beyond all expectations”.
“Among new Norwegian and Danish businesses online, I think almost all choose to include Vipps Mobilepay as a payment option,” he adds.
But even though the income has risen, the costs have also done the same. Last year’s accounts show expenses of a total of NOK 2.7 billion.
Garborg calls 2023 a merger year, which costs a lot, both in time and money.
Quitting 100
Now the company also plans to close the office in Vilnius, the capital of Lithuania. This office was originally part of the Danish group before the merger, writes the niche newspaper.
This means that just over 100 employees will lose their jobs.
The company had salary expenses of over DKK 800 million last year, as well as large expenses in connection with transactions.
Vipps is also working on a solution where tipping will be possible across national borders in Norway, Finland and Denmark, as well as a separate app in Sweden, the company reveals to Bankshift.
Nisjeavisen also writes that the company has 11.5 million users today, and that a total of 1.24 billion transactions were carried out in the three countries in 2023.
