Latvia-based Handwave has raised €3.6 million (US$4.2 million) in seed funding to develop its palm-based payment and identification platform for Europe and the US.

The funding round was led by Practica Capital, with participation from FirstPick, Outlast Fund, and Inovo.vc.

This brings the company’s total funding to €4.3 million (US$5 million), including previous angel investment.

Founded in 2021, Handwave is a biometric technology startup that enables users to pay and verify their identity with a palm scan, no cards, phones, or apps needed.

Its technology uses imaging of palm lines and vein structures to create a secure, encrypted ID for contactless transactions.

The new funding will support product development, regulatory certification, and live retail pilots.

Handwave is currently preparing for pilot programs and working with merchants and partners across the Baltics and other regions.

🔗 Source: EU-Startups

🧠 Food for thought

1️⃣ Biometric payments market shows strong fundamentals despite competitive landscape

Handwave enters a rapidly expanding market with solid consumer demand backing its €3.6 million raise.

The global biometric payment market was valued at $8.53 billion in 2023 and is projected to reach $34.71 billion by 2032, representing a 17% annual growth rate 1.

European consumers specifically show strong acceptance, with nearly 73% favoring biometric authentication for payments, particularly when combined with other security measures 2.

This consumer readiness suggests Handwave’s timing aligns well with market adoption curves, as the company prepares for pilots across the Baltics and beyond.

However, the startup faces established competition from well-funded players who are already deploying similar palm-based systems at scale.

2️⃣ Big tech validation creates both opportunity and competitive pressure