POS: Beyond Cards - Integrating the Next Wave of Mobile Payments (NFC and A2A) into the Retail Payment Experience
Anna Maj (Bridge), Kai Lindström (S-Group), Perttu Kröger (Vipps MobilePay) & Alexander Yin (Epassi)
The European payment landscape is evolving from traditional cards toward NFC-enabled mobile and instant account-to-account (A2A) payments, driven by scalability, seamless user experience, and cost efficiency. Interoperability gains traction with initiatives like VIPPS joining the Europa alliance, expanding cross-border A2A capabilities across 100 million Europeans. Retailers prioritize speed and cost savings, while wallets and tokenization enhance online checkout. PSD2 adoption and real-time SEPA Instant payments further facilitate expanded bank-driven, secure, and scalable digital payment ecosystems across physical and online channels.
"We see a fundamental shift happening now with NFC capabilities opening up to a wider audience, creating a seamless experience in both mobile and account-to-account payments, transforming the in-store physical world with speed, convenience, and scalability."
Summary
- Shift from traditional cards to mobile, NFC, and instant account-to-account payments in physical retail is accelerating. - NFC payments adoption and interoperability across Europe are key to broadening mobile payment usage. - Retailers value speed, convenience, and cost savings; account-to-account payments can reduce fees compared to card transactions. - Seamless user experience and scalability, especially for cross-border payments, are critical for adoption. - Future focuses include tokenization, omnichannel payment integration, and leveraging AI for improved online checkout experiences.
Article
The retail payment revolution: how mobile and instant transfers are challenging card dominance
Industry leaders chart the course for next-generation payment systems at Nordic Fintech Summit
In the rapidly evolving landscape of retail payments, a significant shift is underway – one that could fundamentally transform how consumers pay for goods and services. As mobile payment adoption accelerates across Europe, industry experts are preparing for what many describe as a "fundamental shift" from traditional card-based systems toward NFC-enabled mobile and instant account-to-account (A2A) payment solutions.
This transformation was the focus of an illuminating panel discussion titled "POS: Beyond Cards - Integrating the Next Wave of Mobile Payments" at the Nordic Fintech Summit, featuring insights from Anna Maj (Bridge), Kai Lindström (S-Group), Perttu Kröger (Vipps MobilePay), and Alexander Yin (Epassi).
The end of card dominance?
For decades, plastic cards have been the backbone of retail payment systems. However, the panel highlighted how emerging technologies and shifting consumer preferences are creating new opportunities for alternative payment methods.
"We are definitely embracing the shift to NFC and account-to-account payments," said Perttu Kröger from Vipps MobilePay. "The next six to twenty-four months will be very interesting for mobile payments evolution."
This evolution is being accelerated by technological developments that have removed previous barriers. The opening up of NFC capabilities to a wider range of payment providers – no longer restricted to closed ecosystems like Apple Pay – is seen as a game-changer for the industry.
Retailers seek speed and savings
From the merchant perspective, represented by Kai Lindström of S-Group, the potential cost savings of account-to-account payments present a compelling case for change.
"Customers prefer simplicity; the easiest way to pay in retail is NFC-based mobile app or contactless cards due to speed and ease of use," Lindström explained, highlighting that while the Nordics enjoy some of the lowest card payment fees globally, the potential for further cost reduction remains attractive.
He referenced how retailers in Norway have implemented A2A payment solutions that reduce transaction costs to approximately one-third of traditional card fees. However, Lindström emphasized that speed at checkout remains paramount – any new payment method must match or exceed the convenience of contactless cards.
Cross-border complexity and collaboration
One of the significant challenges in the transition to account-based payments is achieving the same level of cross-border functionality that card networks have refined over decades. Card rails benefit from global infrastructure and standardization, while account-to-account systems tend to be more locally focused.
In a noteworthy announcement during the panel, Kröger revealed that Vipps MobilePay has joined the European Payment Alliance (EPI), potentially enabling account-funded payments across a market of 100 million Europeans. This move signals a serious attempt to address the interoperability challenge that has hindered wider A2A adoption.
"The scalability of card rails benefits cross-border payments, but the future is in creating seamless, account-to-account experiences using NFC technology," Kröger stated, acknowledging that building such collaborative infrastructure takes time.
Beyond cost: the experience imperative
Alexander Yin from Epassi, which specializes in employment benefits payments, brought perspective on the importance of user experience in driving adoption.
"One of the biggest KPIs we focus on is conversion rate—from app engagement to transaction completion—to drive user adoption and merchant traffic," Yin explained, highlighting how his company built its success on account-to-account payments after recognizing that consumers consistently carried smartphones more reliably than wallets or cards.
The panel agreed that regardless of the underlying technology, payment solutions must prioritize seamless experiences. This includes leveraging advancements in authentication that eliminate friction while maintaining security.
The future: omnichannel and AI-enhanced
Looking ahead, the panel outlined several developments set to shape the payment landscape, including:
- Full tokenization of e-commerce transactions by 2030, enhancing security for digital payments - The growing adoption of PSD2-enabled services that allow access to accounts regardless of banking relationships - True omnichannel experiences where consumers can scan items and complete payment within a single app in physical stores - Leveraging AI to improve online checkout experiences
The regulatory environment is also accelerating change, with initiatives like SEPA Instant payments and PSD2 creating the infrastructure for secure, bank-driven digital payment ecosystems across physical and online channels.
A parallel future
Rather than predicting a complete replacement of card networks, the panel suggested a future where multiple payment rails coexist, serving different use cases and preferences.
"We provide optionality with parallel rails and approaches to payment infrastructure, collaborating widely, not competing, to make convenient payments together," one panelist remarked, reflecting the industry's increasingly collaborative approach.
As European consumers and merchants navigate this evolving landscape, the true winners will likely be those solutions that successfully balance speed, cost, security, and cross-border functionality – while making the actual payment process virtually invisible to the end user.
The Nordic Fintech Summit continues through May 15th, 2025, bringing together industry leaders to explore the technology trends reshaping financial services.
Part of Nordic Fintech Summit