Latvian startup Handwave has raised $4.2 million in seed funding to advance its palm-based biometric platform for payments and digital identity. The company’s system enables users to verify their identity, complete transactions, and access loyalty programs with a simple wave of the hand, using only a smartphone for initial enrollment.
The funding round was led by Lithuanian venture capital firm Practica Capital, with participation from FirstPick, Outlast Fund, and Inovo.vc. Handwave will use the investment to refine its technology, pursue regulatory certifications, and expand its merchant partnerships in Europe and the United States, according to TechCrunch.
Founded in 2021 by Jānis Stirna and Sandis Osmanis-Usmanis, Handwave uses two forms of imaging – scanning both palm-surface geometry and subdermal vein patterns – to generate a unique encrypted ID. Users perform a one-time palm scan using a standard smartphone camera and then link their identity credentials, loyalty programs, and payment methods to a secure digital wallet.
“We’re building the next evolution in everyday identity and payment experiences,” said co-founder Jānis Stirna in an interview with EU-Startups. “The checkout process in physical stores is still full of friction. Handwave simplifies all of that with a single gesture.”
Security-First Design and Market Expansion
The Handwave platform features built-in liveness detection and two-factor biometric authentication, which the company says offers greater security than facial or fingerprint recognition. Each palm scan is verified in real-time to ensure that the user is physically present, and the system works with existing point-of-sale infrastructure, helping reduce merchant adoption costs.
The startup is preparing to launch its first live retail pilots and is currently pursuing certifications necessary for commercial rollout in EU and U.S. markets.
Handwave enters a competitive field where major players are also investing in palm-based systems. Tencent recently launched palm payments in Thailand, and Alipay introduced its PL1 terminal in China earlier this year.
The company has attracted talent from across the Baltic region’s fintech and AI sectors. A former Luminor Bank executive who joined the team remarked: “I left a very well-paid corporate job to join this one, and I truly believe that we are building the next big global payment platform.”
Sources: TechCrunch, EU-Startups, Yanko Design
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By Cass Kennedy
