Wireless May Have Few Takers in Corporate Payments Arena
Bank Technology News (07/00) Vol. 13, No. 7 p.43; Murphy, Patricia A.

According to research by Yankee Group, over 500 million mobile phones will be sold around the world next year. By the end of the year, the group expects about 15 million people will be using wireless phones to access and retrieve data from the Web. One wireless technology application is the eCheck, which is exchanged directly between the initiators and receivers of payments via e-mail. The information is entered directly into a bank's check processing and settlement systems without the need for reformatting. RDM, a company that helped develop the eCheck, is also developing an e-deposit processing service to be used with mobile devices, but like eCheck, there is not expected to be much demand for such applications at the corporate level. One major setback is the problem of security. To overcome the security issues, Motorola has introduced its Timeport phone, which is designed to read two smart cards, one containing applications and the other issued by a third party (like a bank). WAP, or Wireless Application Protocol, is used extensively in Europe and developing countries where telecommunications infrastructures have slowed the adoption of the Internet. WAP devices are digital and provide faster connection than traditional services. One drawback is that Internet applications are not easily translated to WAP.


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