Zimpler ordered to stop Swedish BankID services for unlicensed operators

Spelinspektionen, Sweden’s Gambling Inspectorate, has ordered Zimpler AB to stop processing payments for unlicensed online gambling operators or face a fine of SEK 25 million (€2.2m)

Zimpler, an authorised payment services provider of Finansinspektionen, Sweden’s Financial Supervisory Authority, is accused of breaching the rules of BankID-enabled transactions.

An investigation found that Zimpler had facilitated BankID payments to unlicensed gambling companies. BankID is a compulsory e-identification service offered by Swedish banks for the protection of domestic consumers.

BankID is administered by Finansinspektionen, and since 2022, it has registered over 8 million users and is supported by 6,000 web services. Zimpler has until 31 July, 2023, to comply with the Spelinspektionen order or face a fine of SEK 25 million.

In its notice, the Inspectorate disclosed that it had received ‘anonymous tip-off information’ that Zimpler had provided payment solutions for gaming companies without the necessary Swedish licence.

The informant further cited that Zimpler had worked closely with several unlicensed gaming companies targeting Swedish consumers, and was “sharing customer data through its deposits”.

On unlicensed websites, users have the option to select one of two payment methods: either card or Instant Bank Transfer. When a user opts for Instant Bank Transfer, the logo of Zimpler becomes apparent and the user’s KYC data is automatically relayed to the operator through Zimpler’s platform.

The investigation found that details about Zimpler’s role in the deposit process could be found in the terms of use of unlicensed websites.

In response, Zimpler stated that it doesn’t believe its actions constitute unlawful promotion but is nevertheless ending customer relationships with unlicensed EU gaming companies that accept Swedish consumers – proceedings that should be completed by the third quarter of 2023.