The first big wireless applications, deployed in the early 1990s, and to day the focus directed more on mobile-commerce applications that involve actual transactions, in which a user securely purchases or sells goods or services. Current choices are a tiny subset of what will become possible with new location technology, financial settlement systems, devices and networks. This year, companies will extend their e-commerce applications to mobile devices but will rely on existing settlement systems, such as charging a user's credit-card account. Examples of such applications are financial trading, buying tickets, ordering from restaurants, updating financial portfolios, conducting banking transactions (such as transferring funds between accounts) and comparison shopping. Financial-trading applications are leading the way, as customers can derive clear and immediate benefits.
Now available in limited form, will facilitate transactions by providing a centralized way for users to maintain account and shipping information. Whether hosted by portals, ASPs, banks or carriers, will play an increasingly important role in mobile commerce. Credit-card companies also are actively involved in this area. Expect dozens of such systems to crop up by the end of the year, which might cause some confusion among application developers and customers.
Around 2002, new location technology will enable mobile-commerce applications that take a user's location into account. Based on user preferences that address privacy issues, these applications will give users access to localized and personalized information. For example, after dinner at a restaurant, someone could use his or her PDA or cell phone to get a list of movies playing at the closest theater, obtain show times and purchase tickets. Beginning around 2002 but evolving over the decade, new financial settlement systems will allow secure transmission of electronic cash on a wide- or local-area basis. ECash Technologies is one of the pioneers in this area. To buy a Coke from a vending machine, for instance, a user will be able to press a couple of keys on a mobile device to transfer electronic tokens -- the equivalent of virtual coins -- to the machine over a local wireless connection. This capability will apply to in-store purchases as well. In effect, mobile devices could begin to replace cash, checks and credit cards.