After stubbing its toe in Norway, Denmark's Danske Bank is seeking Finnish bank partners to help boost its MobilePay service as a payment method at nearly one thousand S Group grocery stores.

In Finland, Danske is setting up an independent subsidiary to act as a neutral partner for local banks and other companies as it works to convince them to offer the service to their customers. The agreement between MobilePay, S Group and its S-Bank unit would bring in-store and online mobile payments to Finns in the third quarter of 2018.

Danske Bank
Bloomberg News

"Initially, MobilePay will change paying at S Group’s grocery shops in particular," Jari Annala, chairman at S-Bank, said in a Thursday press release. "Later on, we will offer the possibility to use it at other outlets such as fuel stations and restaurants as well."

Users will be able to connect their S-Etukortti card details to MobilePay to make payments, as well as collect bonus points, and receive electronic cash and warranty receipts.

MobilePay, which started operating an independent company last year but is still owned by Danske Bank, became popular in its home market of Denmark. The bank says the app is installed on 90% of consumer smartphones in that market.

But Danske was unable to make a dent in Norway with MobilePay, finally deciding late last year, after nearly two years of marketing, to pull out of Norway and instead support rival Vipps in that market.

A group of 106 Norwegian banks took over Vipps, a mobile pay system for P-to-P, online and in-store payments, from its original provider DNB Group in early 2017.

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