Riga-based fintech startup Handwave, which offers secure, contactless palm-scan technology for payments, ID verification, and loyalty rewards, has secured $4.2 million in a seed funding round led by Practica Capital.
- Launched in 2021 by Jānis Stirna and Sandis Osmanis-Usmanis, Handwave develops a palm-based biometric identity and payments platform that allows users to pay, verify age, and activate loyalty rewards with a single hand gesture, without needing phones, wallets, or cards.
- The system works by scanning both the surface geometry and subdermal vein patterns of a user’s palm to create a unique, encrypted ID.
- Users enroll by scanning their hand via smartphone and linking their payment methods and credentials to a secure digital wallet. At checkout, they simply hold their hand over a reader to complete a transaction.
- Handwave’s technology includes built-in liveness detection and two-factor biometric authentication, offering a level of security beyond facial recognition or fingerprint scanning. The platform integrates with existing POS and ECR systems, allowing merchants to adopt it with minimal hardware upgrades.
- In addition to payments, it supports real-time age verification and loyalty integration, helping businesses reduce checkout friction, combat fraud, and streamline operations.
Details of the deal
- The investment was led by Practica Capital, a Lithuanian early-stage venture capital firm that supports Baltic founders and manages over €130 million in assets. In February, Practica Capital raised a new €80 million fund to continue backing early-stage tech startups across Lithuania, Latvia, and Estonia.
- The round also saw participation from Vilnius-based VC firm FIRSTPICK, Outlast Fund, and Inovo. VC.
- The fresh capital aims to accelerate product development, obtain regulatory approvals, conduct live retail pilots, enhance biometric technology, and grow merchant and partner integrations in Europe and the US.
