This week, Vipps MobilePay, as the company is named after the merger with the Danish app, presented its latest accounts.
In the press release about the 2023 figures, they emphasize strong growth, but it is far from just green figures:
- Vipps MobilePay had a turnover of over NOK 1.5 billion, and is said to have increased this by over 30 per cent.
- But the company spent far more money than they received, and ended up with a loss of NOK 1,095 million – i.e. over one billion.
It has consequences.
«Closing down an office and reducing staffing by 100 colleagues is demanding. At the same time, we must adapt to a more competitive cost base.»
100 people out, fewer consultants
– 2023 was a year for amalgamation. It costs both time and money. In 2024, we will be able to see the synergies both in the economy and in what we deliver to the market, says Vipps MobilePay director Rune Garborg in the press release.
Even if the merger of the Nordic payment services took place in 2022, much of it will technical the job will have been done in 2023. The goal for 2024 is now to halve the loss, and turn a profit by 2026.
To achieve this, they take several measures; the most dramatic to cut 100 positions. This will be done by closing down their offices in Vilnius in Lithuania.
– Closing down an office and reducing staffing by 100 colleagues is demanding. At the same time, we must adapt to a more competitive cost base, says Garborg.
Vipps Mobilepay will also cut costs by hiring fewer consultants, especially in Norwaythe company points out.
As kode24 has reported, Vipps recently started charging for its login service. This is not mentioned as a move to increase profits.
Monday 29 April 2024
Carpeting with Vipps
The fact that Vipps Mobilepay is now bringing the Nordics together in one company and one technical solution should mean that Nordics will soon be able to pay each other across national borders, according to the press release. The Swedes will also get a Vipps app in 2024.
Work is also being done on a solution to allow users to pay in stores by tapping on card machines, as Apple/Google Pay users have been able to do for a long time. As you know, Apple has now opened the iPhone’s NFC chip to third parties, such as Vipps.
– This and much more will enable us to compete with the world’s biggest tech brands, all of which have moved into the payment sphere. 2023 laid the foundation for all simplification and stronger results to come, concludes Garborg.
Friday 8 March 2024
