Lunar Way, the Copenhagen, Denmark based financial technology startup has launched its app in Norway. The Norwegian launch comes just a week after it raised 13 million euros to expand its services in the Nordic region. Just two months ago, the startup debuted in the Swedish market.
Ken Villum Klausen, The founder and CEO of Lunar Way, said that the Lunar Way app with its interactive budget and spending overview tools will launch in the Norwegian market along with a Prepaid MasterCard with multiple currencies. He added that the app’s new community of users will help them in developing the app’s Norwegian version by their feedback and improvement suggestions and ideas. The company adopted the same strategy in Sweden and Denmark to build an app which best suits their lifestyle and needs.
Lunar Way, founded in 2015, broke centuries old monopoly in account information and payment services when it received AISP and PISP license in Denmark. With these licenses, the Lunar Way app is authorized to make payments and customers can also pay bills, analyze their spending, set budget priorities and transfer money through the app. All the transactions occur without a wallet system as the money stays in customer’s bank account.
Klausen said that the fintech solutions have a huge demand in the Norwegian market particularly among the younger Norwegians who are struggling to save money. Many get help from their parents or through government funds. Multiple studies have shown that students find it very hard to make ends meet which is affecting their overall quality of life.
Traditional banks have failed people in realizing their budgetary spending which has shifted focus to consumer loans and credit cards. The prepaid MasterCard offers a budget feature which helps users to monitor their spending as it cannot be overdrawn. Klausen added that the Lunar Way eliminates the hassles involved in managing personal finances by allowing the user to get an overview of spending in real time.
Lunar Way currently wants to restrict itself only to the Nordic region unlike other fintech apps like Revolut or N26 which are looking to expand globally. Klausen cites the reason behind such decision is that the Nordic economies are the most stable markets with strongest customer base in the world. He adds that 90% of Norwegians, Swedes and Danes have a digital financial management solution, making them more digitally native than any other region in world.
Most Nordic people have only one banking relationship and most banks offer very simple banking app without any budget management functionality. This has created good opportunities for financial technology companies to offer better services.