Handwave Secures $4.2 Million Seed Round to Revolutionize Palm Payments, Targeting Strict EU Market First

Riga, Latvia – Handwave, a promising startup pioneering biometric palm payment technology, has successfully closed a $4.2 million seed funding round to fuel its expansion adn development. The round was led by Vilnius-based venture capital firm Practica Capital, with significant contributions from Lithuanian investors FirstPick and Outlast Fund, and Polish VC firm Inovo.vc.

This infusion of capital signals strong confidence in HandwaveS vision to disrupt the payment landscape with its innovative palm vein scanning technology. the company,which has its sights set on the U.S. market, is strategically prioritizing the European Union as its initial launchpad.

“We believe starting in the European Union – the strictest market in the world – and demonstrating compliance there will be an advantage before expanding,” stated Handwave co-founder and CEO, Alberts Laksevics. this approach allows Handwave to build a robust and trustworthy platform in a highly regulated surroundings.

Handwave’s decision to establish itself as an independent European entity could also prove beneficial in navigating the evolving competitive landscape. As giants like Amazon explore their own biometric payment solutions, such as Amazon One, and JP Morgan experiments with palm-based payment systems, Handwave’s independent status may offer a strategic edge.

Crucially, Handwave has focused on developing its own proprietary hardware and algorithms, enabling it to offer competitive pricing.This was a key consideration following feedback from financial partners who emphasized the need for devices that can compete on cost.

The startup’s journey has been marked by a lean and resourceful approach. Based in Riga, Handwave’s research and development have been primarily bootstrapped, supplemented by a $780,000 angel investment round and $267,000 in non-equity funding. This non-equity support includes a cybersecurity grant funded by the EU, as well as backing from latvia’s Lia Business Incubator and the EU-backed Ready2Scale accelerator.The Baltic region is increasingly recognized as a burgeoning fintech hub, offering a rich pool of scientific talent, especially AI engineers. Handwave’s leadership highlights the advantage of accessing this talent, which is both more affordable and accessible than in regions like Silicon Valley. “In the Baltics, there are not a lot of companies where you can get that extreme level of technical challenge to resolve,” commented Stirna, co-founder.

Laksevics, who previously held a senior marketing position at Luminor Bank, expressed his conviction in Handwave’s potential. “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,” he shared.

As Handwave gears up for its initial pilot programs and pursues essential regulatory certifications, the company is poised to make a significant impact. The success of its seed funding round underscores the growing interest in secure, convenient, and innovative payment methods. The future of biometric palm payments now rests on Handwave’s ability to capture market adoption and solidify its position as a leader in this emerging technology.

What are the key benefits of diversifying payment options beyond Amazon Pay for European retailers?

Handwave: Empowering European Retailers with Amazon-Option Payment Solutions

The Rising Need for Payment Diversification in Europe

European retailers are increasingly seeking alternatives to dominant payment platforms like Amazon Pay. This isn’t about rejecting successful systems, but about regaining control over customer data, reducing reliance on single providers, and optimizing payment processing costs. The landscape of European payments is evolving rapidly, driven by PSD2, open banking initiatives, and a growing consumer demand for choice. Alternative payment methods (APMs) are no longer a niche offering; they’re becoming essential for competitive advantage. Factors driving this shift include high Amazon Pay fees, concerns over data privacy (especially with GDPR), and the desire to offer a more localized and personalized shopping experience.

What is handwave and How Does it Work?

Handwave is a unified payment platform designed specifically for European retailers. It aggregates a wide range of local payment methods – beyond credit and debit cards – into a single, streamlined integration. This means retailers can except payments via:

iDEAL (Netherlands): A popular bank transfer system.

Bancontact (Belgium): The most used payment method in Belgium.

sofort (Germany,Austria,Switzerland): Direct bank transfer.

Giropay (Germany): Another widely used German bank transfer option.

BLIK (Poland): Mobile payments via a unique code.

Przelewy24 (Poland): A leading Polish online payment gateway.

EPS (Austria): Direct debit system.

Multibanco (Portugal): Cash-based payment through atms and retail locations.

Handwave doesn’t just offer these methods; it simplifies the complex process of integrating them. Instead of managing multiple contracts and apis, retailers connect to Handwave once, and gain access to the entire network. The platform handles currency conversion, fraud prevention, and reconciliation, reducing operational overhead. It’s built with PCI DSS compliance as a core principle, ensuring secure transactions.

Benefits of Choosing handwave for Your European Expansion

Implementing Handwave offers a multitude of benefits for businesses looking to thrive in the European market:

Increased Conversion Rates: Offering preferred local payment methods significantly boosts conversion rates. Customers are more likely to complete a purchase when they can pay with a method they trust and are familiar with. Studies show conversion rates can increase by up to 15-20% by offering local APMs.

Reduced Payment Processing Costs: Negotiating individual contracts with numerous payment providers is time-consuming and often results in higher fees. Handwave leverages its collective bargaining power to secure competitive rates. Lower transaction fees directly impact profitability.

Enhanced Customer experience: A seamless checkout experience builds trust and encourages repeat business. Handwave’s optimized payment flows minimize friction and cater to local preferences.

Simplified Integration: One API, one contract, one platform. Handwave drastically reduces the technical complexity of accepting payments across Europe. This frees up valuable growth resources.

Fraud Prevention: Robust fraud detection and prevention tools protect your business and your customers from fraudulent transactions. Handwave utilizes advanced risk scoring and machine learning algorithms.

Data Control & GDPR Compliance: Maintain greater control over your customer data and ensure compliance with GDPR regulations. Handwave prioritizes data privacy and security.

Handwave vs. Amazon Pay: A Direct Comparison

| Feature | Handwave | Amazon Pay |

|—|—|—|

| Payment Methods | Wide range of local APMs + cards | Primarily Amazon account balance & cards |

| Fees | Competitive, obvious pricing | Variable, often higher fees |

| Integration | Single API, simplified process | More complex integration |

| Data Control | Full control over customer data | Limited data access |

| Localization | Designed for European markets | Global, less focused on local nuances |

| Customer Relationship | Direct relationship with customers | Amazon mediates the relationship |

While Amazon Pay offers convenience for customers already within the Amazon ecosystem, Handwave provides a more flexible, cost-effective, and data-centric solution for European retailers seeking long-term growth. Payment gateway comparison is crucial for making informed decisions.

Practical Tips for Implementing Handwave

1. Identify Key Markets: Prioritize the European countries where you see the greatest growth potential.
2. **Analyze Payment Preferences