The biometric system scans the veins in hands to identify a person and approves payments in seconds.
Like fingerprints, no two humans have the same pattern of veins in their hands.
So far, the company Quixter has set up 15 machines dotted around the campus of Lund University from which the founder, Fredrik Leifland, is a graduate in engineering.
"There really is no way of committing fraud with this system. You always need your hand scanned for a payment to go through," Leifland said.
"When you go to pay in the supermarket you enter the last four digits of your phone number and then you hold your hand above the sensor. The transaction takes less than 5 seconds," he said.
Leifland told website 'Humans Invent' that the reason for entering the last four digits of your phone number is to make you look at the terminal and confirm you are paying the correct amount.
To start using the payment system, people need to go to a store with a terminal and register with their social security number and phone number, according to 'pcmag.com'.
A new user has their palm scanned three times and receives an activation link via the Quixter website.
After filling out some additional information that links their biometric profile to payment methods, they're good to go on any palm-scanning terminal run by the startup.