The new phenomenon of e-commerce is fueling - and being fueled by - a genesis in finance and technology. The velocity of money has propelled the growth of financial markets worldwide. The speed and pervasiveness of deploying information has dramatically altered the landscape of financial services, particularly in the last five years.

E-commerce has exploded in today’s world with the voracity of a saber-toothed tiger, and is expected to top $320 billion by 2002. The growth and success of NASDAQ -now with its showcase floor in New York City’s Time Square- is evidence of these phenomena. But watch out - the impact that wireless and mobile technologies will have on commerce has yet to be felt.

E-cash - electronic data with transaction value- has begun to manifest itself in many shapes and forms. Smart cards, Flooz, credit card and debit card transactions have joined wire transfer as new means of moving money electronically. Whether e-cash is used to move funds between accounts or to purchase goods or services, e-cash functionality can be grouped into one of two basic categories:

• Cash Alternatives
• Transaction Processing

Cash Alternatives. Smartcards, Flooz, credit cards and debit cards are all forms of cash payments available for use today. Subways, tollbooths, vending machines and other delivery mechanisms accept these forms of payments.

Transaction Processing. The functional ability to facilitate the exchange “money” for a good or service is commonly referred to as transaction processing. Credit card terminals, automatic teller machines and Internet sites all enable the payment for a good or service by connecting to a service which processes the transaction.

The growth and proliferation of e-cash is taking on added dimensions as new technologies and, more importantly, the products and services which employ them, emerge. E-commerce solutions are not emerging, however, simply because technology is allowing it to happen. There is a new value paradigm that is taking hold as the elements and people of the 21st century begins to define itself.

In the latter half of the 20th century, computers emerged and established themselves as tools which allowed higher productivity......the ability to do more with less. In many cases, they delivered on that promise as the business community embraced mainframe computers, then mini-computers, then laptop/notebook computers, and now handheld and palmtop computers. The integration of computing and telecommunications introduced a new concept in the benefit proposition.

Numerous technologies that enable wireless e-commerce and more are emerging. Wireless communications, miniaturized components, pervasive IP (internet protocol) usage, lithium batteries and more have given rise to a plethora of products and services which enable wireless and mobile e-commerce.

Many devices offer some form of mobile or virtually instantaneous payment: Smartcards, wireless local area networks, wireless wide area networks, smartphones, handheld computers, two-way pagers, wireless transaction processing terminals, and wireless automatic teller machines. Systems software, often delivered in the form of applications programming interfaces (APIs), now allow developers to communicate over wireless networks with greater reliability, expand the power and functionality of credit card transactions, enhance security throughout the transaction process, and much more.

Financial transactions are no longer limited to traditional brick and mortar locations such as banks and retail stores. They are also no longer limited to locations served by telephone lines. Transaction terminals from companies such as Hypercom and Verifone are available with access to wide area wireless networks such as analog and digital cellular. Merchants can collect real-time payments in non-traditional settings such as at stadiums, at street fairs, in taxi cabs, etc. The consolidation of credit card processing companies and of wireless carriers may help propel these applications. Gooitech delivers wireless automatic teller machines (ATMs) that can be situated in places without access to telephone lines.

The transactional power of the Internet has been extended beyond the desktop as portable devices and wireless networks allow mobile users to access Web sites and portals from virtually anywhere. Visa has partnered with Palm Computing to allow PalmVII users located in the U.S. to access Visa’s ATM Locator, which pinpoints the location of any of Visa’s 531,000 ATMS in 120 countries. While this service does not permit the movement of e-cash to the Palm VII from Visa’s ATMs, it is reasonable to assume that e-cash will be available soon on the Palm as the adoption rate [of mobile and wireless products and services] in the U.S. increases.

Wall Street firms have been investigating and rolling out wireless computing systems for at least ten years. The New York Board of Trade, American Stock Exchange and New York Stock Exchange have systems which allow prices to be wirelessly transmitted from the trading floor to host computers. Brokers use handheld PCs, two-way pages and other portable computing devices to stay abreast of stock information.

Fidelity Investments offers InstantBroker(TM), allowing brokerage customers who are Spartan Active Traders to receive personalized investment information - such as account balances, position valuations, real-time stock alerts, and execution notifications - through their wireless device of choice, based on their needs. In addition, customers using the Inter@ctive Pager 950 with the BellSouth Wireless Data network, can receive real-time stock and option quotes by simply entering the symbol. "The immediate need for information is key in the financial services industry," said William F. Lenahan, former president and chief executive officer, BellSouth Wireless Data. "With the BellSouth Intelligent Wireless Network and InstantBroker combination, investors nationwide are able to access and receive personalized financial information - using a powerful, portable device."

Info-Sm@rt from I3 Mobile, Stamford, CT, is a new Internet-based service providing dozens of customizable services including news headlines, sports scores, weather forecasts, stock quotes, flight delays and horoscopes. Founded in 1991, I3 uses the BellSouth Interactive Paging Serviceto let customers send and retrieve information virtually instantaneously, from almost anywhere. I3 is attracting the interest and money of Wall Street.

The growing number of application service providers (ASPs) are offering increasing functions which enable the use of e-cash. Online banks such as Wingspan.com and CompuBank offer their customers the ability to pay bills and maintain balances via their Web sites. Other companies offer the ability to accept and process credit cards via their sites. Security measures have improved with enhanced encryption, digital keys and validation to ease the fears of online consumers. Datalink.net , a Silicon Valley Internet company, delivers premium, personalized financial and lifestyle information such as e-mail alerts, stock quotes, company information, weather reports, sports scores and more to wireless devices. Its Web-to-Wireless(TM) platform combines real-time data feeds, the World Wide Web and wireless communications.

The advent of wireless communications and portable computing devices has inspired many firms to develop solutions that improve their customer service and advance their competitive advantage. Today, the IT industry offers a plethora of products and services which combine to deliver wireless computing solutions for Wall Street. Ammobile, BellSouth Wireless Data, Sprint, AT&T, Verizon Wireless and others have wireless networks that deliver voice and data to phones, pagers and handheld PCs, to name a few. Symbol Technologies, Palm Computing and Research in Motion are a few of the manufacturers of handheld computers and two-way pagers which are used by people on the street to stay abreast of pertinent information. By combining wireless networks and portable devices with the Internet, even more services are emerging.

As the functional capabilities made possible by wireless and mobile technologies take hold, we will see improved cash management applications as well as more accurate financial projection systems. Producers will integrate their distributors and retailers into their planning, manufacturing and accounting process as they automate the ability to help define future products, order existing product and pay for those orders. By capturing, tracking and analyzing the information from these processes, manufacturers will be in a position to improve the supply chain management process. Likewise, companies and individuals who use IT systems that employ wireless and mobile technologies will be better equipped to manage their portfolios while concurrently optimizing their cash positions. They will be able to move e-cash from one account to another, converting currency when it is most advantageous, and moving in and out of positions expeditiously to maximize their portfolio value. Indeed, the future of e-commerce is truly exciting. The future is in our hands. Future applications are only limited by the creativity of customers who dream of solutions and vendors who seek to deliver them. As Albert Einstein once said, "Imagination is more important than knowledge. "