The company’s financial difficulties became particularly acute following a January 27, 2025 arbitration ruling by the Oslo Chamber of Commerce, which ordered Zwipe to pay USD 702,000 (excluding VAT) to IDEX Biometrics ASA, plus late payment interest and legal costs. The ruling came at a particularly challenging time for Zwipe, which had reported significant losses in 2022 with total revenues of 3.9 mNOK against operating expenses of 108.1 mNOK, resulting in an adjusted EBITDA of -96.4 mNOK.
The bankruptcy filing comes despite Zwipe’s earlier success in the biometric payment card sector. The company had previously achieved significant milestones, including trials with ten Middle Eastern banks and partnerships with major payment processors like FSS in India.
“It is with great regret that we are forced to make this decision today,” said Jörgen Lantto, chairman of Zwipe AS. “We have done everything in our power to find alternative solutions to secure continued operations, but we have not succeeded. Our focus is now to ensure an orderly process for all affected parties.”
The bankruptcy filing comes at a time when the biometric payment industry is showing signs of growth, with Mastercard recently announcing plans to eliminate passwords in favor of biometric authentication by 2030. However, market adoption has been slower than anticipated, with recent surveys showing mixed consumer sentiment toward biometric payment technologies.
A bankruptcy trustee will be appointed by the district court to manage the company’s assets and obligations through the bankruptcy process. The company, founded in 2009, was known for its development of secure biometric authentication solutions, particularly in the payment industry through products such as Zwipe Pay and Zwipe Access.
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February 18, 2025 – by Cass Kennedy
