Norwegian lender DNB announced that over 100 local banks have joined forces with it over Vipps mobile payment app to ensure that the solution will deliver innovative payment services.

DNB, the SpareBank 1 alliance, the Eika alliance, Sparebanken Møre and the 15 independent savings banks which also are co-owners of Frende Forsikring have signed a letter of intent to collectively acquire a 48% share in Vipps.

Under the deal, DNB will retain nearly 52% of the shares, SpareBank 1 alliance will own 25%, the independent savings banks 12%, the Eika alliance 10% and Sparebanken Møre 1%.

SpareBank 1 will transfer its mobile payment solution mCASH, which delivers same services as Vipps.

Additionally, DNB group executive vice president and head of Vipps and Payments Rune Garborg has been appointed as head of Vipps, while SpareBank 1 Mobile Payments managing director Elisabeth Haug  will join Vipps as deputy managing director.

Commenting on the partnership, DNB group CEO and incoming chairman of the board of Vipps Rune Bjerke said: "Vipps has become the champion of person-to-person payments and, in a short amount of time, has rolled out mobile, online and in-store payment solutions. Over the course of 2017, Vipps will be available in far more places than we have seen up until now. This alliance will make us better equipped to win the race against Nordic and international market participants.”

SpareBank 1 CEO Finn Haugan said: "Several market participants are competing to launch their own mobile payment solutions. A lot of people find this confusing, whether they are making payments or on the receiving end.

“Even though we have taken a firm market position in a short amount of time through our mCASH initiative, many of our customers have expressed a preference for one solution: a single strong and distinct provider. This is why Norwegian banks now join forces to create one single mobile wallet for all Norwegian bank customers.”