Handwave lends a hand to retailers with its European alternative to Amazon’s palm payments

The concept of paying with a simple handwave was once considered futuristic, but Amazon’s contactless palm recognition service, Amazon One, has already been used over 8 million times. This innovative technology has been implemented in Amazon stores, over 500 Whole Foods Market locations in the U.S., and 150 third-party establishments.

Meanwhile, emerging fintech startups like Handwave from Latvia are entering the scene, aiming to provide independent solutions for faster checkout experiences to third-party retailers. Leveraging the growing popularity of biometric payments in the Western market, Handwave is following in the footsteps of giants like Amazon and Tencent, who have introduced biometric palm payment services in China.

Similar to Apple’s Face ID technology, palm scanning for payments goes beyond capturing static images by analyzing palm vein patterns and ensuring the user is physically present during the transaction. This secure method not only facilitates contactless payments but also extends to broader identity verification applications, such as secure building access, supported by companies like Keyo.

Unlike Amazon, Handwave’s primary focus is on the retail sector. Without its own stores, the Latvian startup has collaborated with partners to develop its own hardware and software for deploying palm scanning devices in retail stores. Merchants adopting Handwave’s technology would benefit from faster checkouts at competitive transaction fees, aiming to streamline the payment process while prioritizing customer convenience.

The cofounders of Handwave, CEO Janis Stirna, and Sandis Osmanis-Usmanis, bring valuable experience from their time at Worldline, a leading global payment provider. Despite their industry connections, the startup aims to establish a diverse ecosystem by collaborating with various financial institutions and acquiring banks.

While Handwave eyes expansion into the U.S. market, starting in the European Union allows the startup to demonstrate compliance in a stringent regulatory environment before scaling globally. The independent European approach could provide Handwave with a competitive advantage, especially as tech giants like Amazon and financial institutions explore biometric payment solutions.

With a focus on affordability and performance, Handwave has developed cost-effective hardware and algorithms to compete in the market successfully. The startup’s strategic location in Riga, coupled with funding from angel investors, grants, and venture capital firms, has enabled it to progress rapidly in the evolving fintech landscape.

As Handwave prepares for market trials and regulatory certifications, a recent $4.2 million seed funding round led by Practica Capital and other investors signifies confidence in the startup’s potential. The Baltic region’s vibrant fintech ecosystem and access to skilled talent position Handwave for future growth and innovation in the global payment industry.

Driven by a shared vision and a commitment to revolutionize payment platforms, Handwave’s team is dedicated to creating a seamless and secure payment experience for consumers worldwide. The startup’s journey towards mainstream adoption of biometric palm payments reflects a new era of innovation and convenience in the digital payment landscape.