Last week Vipps reported that usage of their login-solution has exploded since August. This is a key-strategy from Vipps in their fight against Facebook, Google, and Apple. Vipps main differentiator here is that users on Vipps are verified with BankID and users already trust them for payments.

Benedict Evans has written an interesting article in this regard about a theory he has when big companies are worried Big Tech are getting into their turf:

Read the rest of Are you a seal?

While we’re talking about Vipps: «Vipps Sliced Payment» is set to be the next big news from the Norwegian payment service after a slip up during a webinar last week. With Sliced payments Vipps move into the credit space and offer financing at the time of purchase. A smart move considering Vipps still is in deficit and “Buy Now, Pay Later” (BNPL) is how Klarna has managed to be one of Europe’s most valued fintech companies. 

Buy Now Pay Later solutions has surged during the pandemic. Affirm, the American competitor of Klarna, is preparing for an IPO valued at $5B to $10B IPO (Klarna is worth $10B+ for comparison). Tech writer Byrne Hobart has read the whole IPO filing and found out that this is what Affirm earns their money on:

It wouldn’t be a big surprise if we in a few years see virtual credit cards in Vipps. ;)

Stripe, which we frequently get back to in this newsletter, is in the market for more money after raising a round in April. However, their value in this next round could double their valuation to between $70 - $100 billion. This would make Stripe the first or second most valuable startup in the world, depending on how you do the math. Alex Wilhelm from TechCrunch sums it up rather nice: “Stripe’s possible new valuation could make some sense. The fact that it is still a private company does not.”

If you find Stripe fascinating, you will enjoy this article comparing the different paths taken in the US, China, and India to ready their financial systems for the 21st century. Stripe is used in the US example where the payment system became automated early but has dated-but-mission-critical legacy code scattered throughout the system, enabling Stripe to create a convenience layer on top. In the other examples, you’ll see that the maturity of economic development, consumer/merchant behaviors, the regulatory environment, and the smartphone revolution played vital roles in shaping very different outcomes for the different countries. 

For example, did you know that India had a dysfunctional legacy payment system in 2015, but that they revamped their whole payment system in a few years to what now is considered the gold standard for modern payments?

The article continues to look into who will be best positioned for the next wave of financial innovation: Decentralized Finance (DeFi). China appears to be ahead of the curve with its central bank digital currency already in the pilot. But the transparency of crypto seems to be incompatible with China’s government. On the other side, there might be time for the US to revamp their old system to get a head start in the coming decentralized future.

Household savings have increased drastically during COVID. This week we’ve observed some interesting news in that regard of companies launching new saving opportunities:

Radek Sienkiewicz has written an interesting article on why many brands change their logos to end up like like everyone else. The text is filled with possible reasons (and counterpoints).

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Marius Hauken, partner Stacc X