Last month Finnish mobile payments app Pivo was removed from the planned three-way merger after the EC raised competition concerns. Now the commission has given the green light for Danske Bank-owned MobilePay and Vipps, which is backed by a consortium of Norwegian lenders, to merge.

The combined company, which is set to launch on 1 November, will have close to 11 million consumers and 400,000 shops and e-commerce sites across Finland, Denmark and Norway.

The new entity is now building a common technology platform, with the first step to collect both wallets on Vipps’ digital platform, with local adaptations and local brands.

Vipps’ bank owners will hold 72.2% of the new company, with Danske taking the remaining 27.8%.

Vipps CEO Rune Garborg, who will take up the same role at the merged firm, says: "We are going to break down the digital barriers between countries here in the north. As we now get to join forces, the goal is to simplify payment and trading throughout the Nordics.

"We will do this by offering simple payment solutions on one, secure digital platform. Our ambition is to solve everyday problems everywhere, and this merger gives us endless possibilities for simplification."