MobilePay expected to launch in Faroe Islands next parliamentary year

MobilePay, the widely used Nordic mobile payment service, will likely become available in the Faroe Islands during the next parliamentary year, according to finance minister Jacob Vestergaard.

Responding to a question from MP Fróði Magnussen, Vestergaard confirmed there is no direct legal prohibition against MobilePay operating in the Faroes. However, the service’s Norwegian-registered parent company, Vipps MobilePay, currently lacks the necessary licensing under Faroese financial regulations.

Because the Faroe Islands are neither part of the EU nor EFTA, Danish financial service providers must apply to the Faroese Financial Supervisory Authority for approval to offer MobilePay locally. Vestergaard noted that obtaining an independent license could involve “significant administrative and technical costs,” raising questions about whether providers would bear those expenses to enter the Faroese market.

The Ministry of Finance and the Financial Supervisory Authority are now examining solutions, with amendments to Faroese payment legislation seen as the most viable path. Vestergaard emphasized that any changes must avoid unintended consequences for existing financial operators in the islands.