Handwave: The European Startup Challenging Amazon’s Palm Payments
Handwave: The European Startup Challenging Amazon’s Palm Payments
Amazon’s palm payment system, Amazon One, is gaining traction, but a Latvian startup called Handwave is stepping up to offer an independent alternative for retailers in Europe. Let’s dive into how Handwave plans to compete and why this could be a game-changer for the future of payments.
What is Handwave?
Handwave is a fintech startup based in Latvia that’s developing a palm scanning technology for retail payments. The goal? To provide a faster, easier, and more secure checkout experience for customers, without the need for cards, apps, or even facial scans.
Why Palm Scanning?
Palm scanning technology analyzes the unique vein patterns in your palm to verify your identity. It’s similar to Apple’s Face ID but uses your hand instead of your face. This method ensures secure contactless payments and can also be used for age verification and loyalty programs.
Handwave vs. Amazon One: The Key Differences
While Amazon One has seen considerable adoption, especially within Amazon-owned stores like Whole Foods, Handwave aims to be an independent solution for third-party retailers. This means any store can implement Handwave’s technology without being tied to the Amazon ecosystem.
How Handwave Works
Handwave provides retailers with its own hardware and software for palm scanning. Here’s a breakdown:
- Hardware: Handwave has developed its own palm scanning devices, designed to be cost-competitive.
- Software: The software analyzes palm vein patterns for secure identification and payment processing.
- Transaction Fees: Retailers pay a transaction fee to Handwave, which the company claims will be comparable to or lower than standard payment processing fees.
The Benefits for Retailers and Customers
- Faster Checkouts: Palm scanning is quick and efficient, reducing wait times at the register.
- Lower Costs: Handwave aims to offer competitive transaction fees, potentially lowering payment processing costs for retailers.
- Enhanced Security: Palm vein patterns are unique to each individual, making it a highly secure form of biometric identification.
- Convenience: Customers don’t need to carry cards, use apps, or worry about forgetting their wallets.
Handwave’s European Advantage
Handwave is focusing on the European market first. Oskars Laksevics, Handwave’s chief revenue officer, believes that starting in the European Union, known for its strict regulations, will give them an advantage as they expand globally. Demonstrating compliance in Europe can build trust and credibility with customers and partners.
Competing with Giants
Being an independent European player could give Handwave an edge if Amazon decides to expand Amazon One to more third-party retailers. Handwave’s focus on affordability and collaboration with various financial institutions could also help them stand out.
Funding and Support
Handwave has secured $4.2 million in seed funding, led by Practica Capital, with participation from other VC firms. This funding will help Handwave scale its operations, conduct pilot programs, and obtain necessary regulatory certifications.
The Future of Palm Payments
Biometric payments, including palm scanning, are becoming increasingly popular. They offer a convenient and secure alternative to traditional payment methods. As technology advances and costs decrease, we can expect to see more retailers adopting these innovative solutions.
Actionable Takeaway
For retailers, consider exploring biometric payment options like Handwave to enhance the customer experience and streamline checkout processes. For consumers, be open to trying new payment technologies that offer convenience and security.
FAQ
Q: How secure is palm scanning technology? A: Palm scanning is considered highly secure because it analyzes unique vein patterns that are difficult to replicate.
Q: What happens if my palm scan doesn’t work? A: Retailers will typically offer alternative payment methods, such as credit cards or cash, as backup options.
Q: Is Handwave available in the United States? A: Handwave is currently focused on the European market, but they have plans to expand to the U.S. in the future.
Key Takeaways
- Handwave is a European startup offering an alternative to Amazon’s palm payment system.
- Palm scanning technology provides secure and convenient contactless payments.
- Handwave aims to collaborate with financial institutions and offer affordable solutions for retailers.
- The future of payments may involve more biometric options like palm scanning.
Handwave’s journey highlights the exciting innovations happening in the fintech space. By focusing on independence, affordability, and collaboration, they’re positioning themselves to be a key player in the future of retail payments. Only time will tell if Handwave can successfully challenge Amazon, but their innovative approach and strategic focus on the European market make them a startup to watch.
Source: TechCrunch
