As the debate over Norwegians' growing consumer debt rages, Vipps launches a new offer for deferred payment of bills. The company believes the solution they will now offer will actually help people not take out consumer loans.
The payment app Vipps will now offer users to postpone the payment of bills by up to 30 days, for a flat fee. It informs the company of E24.
The company says that they have used user data to create a solution that should be easy to keep track of.
With this, Vipps is expanding into yet another area that can give the company extra revenue.
As Vipps' original friend payment service is free of charge in most cases, it also does not provide significant revenue. Therefore, the company has worked intensively to establish other sources of income. This includes, among other things, invoice payment, payment in online stores and soon also a large investment in payment in store through QR codes at checkout.
– We believe that the opportunity to postpone a bill in Vipps is helpful for those with a temporary need for it, especially since the user gets to cover the amount the bill is on, but no more. It is not desirable for Norwegians to spend too much credit, says communications director Hanne Kjærnes in Vipps.
You will be able to defer payments up to a total of NOK 10,000 at any time, either divided into one or more bills.
– It can be useful to pay unforeseen costs such as dental bills or damage to the car, which you may not have room to pay right away, says Kjærnes.
The service is launched at the same time as there has been an intense debate in Norway about the increasing consumption debt of the Norwegians, how the industry operates and how to regulate unsecured credit.
– Have you had any objection to start giving short-term credit this way?
– We have been working on this for a long time, precisely because of these reasons. We would like to find a good solution that provides value to our customers, which is user-friendly and can help temporarily. That is why we have set such a low frame as NOK 10,000, says Kjærnes.
She emphasizes that you cannot borrow more money than the invoice amount, so the loan is given on the basis of invoices you have received.
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The cost to the customer is a fee in NOK and not a percentage interest rate, which Vipps believes is easier for people to relate to. There are three different rates, and it is only if you go over time on the deferred payment that interest rates will start to run. You receive a reminder if you have not paid within 15 days of deferred maturity.
– The deferred payment will remain with the other invoices in Vipps, making it easy to keep track of the accounts, says Kjærnes.
Initially, the service is gradually rolled out to Vipps users on Apple's iOS operating system. The Android version is due next year.
Sparebanken 1's credit card division is responsible for the credit itself, while Vipps acts as an agent. You do not have to be a customer of Sparebanken 1 to take advantage of the offer and Vipps states that they are working to get more banks on the service gradually.
– What do you earn from this, do you get part of the fee?
– Yes, Sparebanken 1 Credit Card and we share the revenue, says Kjærnes.
– Must one first apply to the bank for credit?
– No, that is done directly in the Vipps app. After updating to the latest version of the Vipps app and receiving an invoice, you will be given a choice to pay right away or on deferred payment, explains Kjærnes.
At first use, you will be guided through a fully digital process where you have to answer some questions about their finances before the system finally says yes or no to whether you will be granted the credit.
– The solution with Sparebanken 1 means that you apply for a new credit limit, but we work with other banks so that you can eventually use the existing credit limit you have in your bank from before, says Kjærnes.
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