Biometric Payment Startups Gain Funding, Partnerships

Published Date : 8/5/2025 

New startups in the biometric payment market, such as Handwave and Secern AI, are attracting significant funding and forming strategic partnerships to revolutionize contactless payments. 

New players are entering the biometric payment market, forecasted by Goode Intelligence to make more than $11 billion in revenue by the end of the decade.

Latvian fintech startup Handwave is preparing to secure regulatory certifications for its palm-scanning devices and launch pilots in third-party retail stores. The scanner measures hand shape and vein biometrics, measuring blood flow for liveness detection.

Founded by two former employees of payment company Worldline, the company has developed its own hardware and software product and is hoping to attract merchants in Europe. Merchants using the palm scanner would pay Handwave transaction fees that are comparable to or below standard payment processing rates. The firm is also setting its eyes on the U.S. market.

The Riga-headquartered company has already partnered with a handful of financial institutions, including Visa, according to its co-founders, CEO Janis Stirna and Sandis Osmanis-Usmanis. Handwave funded its R&D process through bootstrapping, a $780,000 angel investment round, and $267,000 in non-equity funding from an EU-funded grant from the Latvian Central Finance and Contracts Agency (CFLA). It has also received support from Latvia’s LIAA Business Incubator and EU-backed accelerator Ready2Scale.

It has also obtained $4.2 million in seed funding with Vilnius-based venture capital firm Practica Capital as the lead investor, TechCrunch reports.

The contactless payment market is also rising in South Korea, where companies such as Shinhan Card, Toss, and Naver are attracting more users. Another entrant into the field is Seoul-based AI vision company Secern AI.

The company has signed a partnership agreement with electronic payment gateway company Nice Payments and plans to work on a combined facial recognition payment product. The SeeU Pay 2.0 service will rely on Secern AI’s face biometrics technology and Nice Payments’ payment infrastructure and settlement system. The system links facial data with credit card information, ensuring fraud protection through features such as liveness detection.

Secern AI plans to attract customers not only from retailers but also from public institutions, resorts, restaurants, and more. Demand is expected to be particularly strong in industries that require identity verification before payment, such as hospitals, pharmacies, and airport duty-free shops, the two companies say in a release.

Alan Goode of Goode Intelligence recently discussed opportunities in contactless payments in a Biometric Update podcast. 

Frequently Asked Questions (FAQS): 

Q: What is the forecasted revenue for the biometric payment market by the end of the decade?

A: Goode Intelligence forecasts that the biometric payment market will make more than $11 billion in revenue by the end of the decade.

Q: What technology does Handwave use for its biometric payments?

A: Handwave uses palm-scanning technology that measures hand shape and vein biometrics, including blood flow for liveness detection.

Q: How does Secern AI plan to integrate with Nice Payments for contactless payments?

A: Secern AI and Nice Payments have partnered to develop the SeeU Pay 2.0 service, which combines Secern AI’s face biometrics technology with Nice Payments’ payment infrastructure and settlement system.

Q: What are the key industries expected to benefit from Secern AI’s facial recognition payment system?

A: Industries that require identity verification before payment, such as hospitals, pharmacies, and airport duty-free shops, are expected to benefit from Secern AI’s facial recognition payment system.

Q: How did Handwave secure funding for its R&D process?

A: Handwave secured funding through bootstrapping, a $780,000 angel investment round, $267,000 in non-equity funding from an EU-funded grant, and $4.2 million in seed funding led by Practica Capital. 

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