s merchants embraced the 21st century, e-commerce was the definitive buzzword. But in an industry where what's hot and happening can have the lifespan of a fruit fly, m-commerce is leading the retail bandwagon. Consider the following stats: By 2003, there will be one billion mobile phones and 800 million Internet-enabled mobile terminals.

By 2004, retail POS expenditures by smart device users will exceed $900 billion in the United States compared to only $20 billion over the Internet.

Mobile commerce revenues are expected to reach $140 billion by 2004.

Staggering though these figures may be, the obvious question is: How does a merchant jump on this electronic bandwagon and secure a larger market share? One suggestion is to hook up with a company that provides an efficient interface between mobile devices and existing retail infrastructure.

For current POS transactions, credit and debit cards contain static information about the consumer on three tracks within a magnetic stripe. This stripe serves as the critical component for functionality in the retail environment, establishing user identity, account validity and transaction approval.

Once it is swiped through a conventional card reader, stationary sensors pick up the magnetized data and prompt the card issuer for authorization and process. Unfortunately, POS terminals critical to credit and debit card transactions possess no functionality for mobile device communication, and therein lies the barrier.

One company has created end-to-end mobile commerce solutions that enable functionality in the physical world. With a vision to provide a mobile, user-friendly and interactive transaction platform able to conduct virtual, physical and proximity payments with Web-based facilitation and support, C-SAM (as in Secure Active Mobile) has developed technology that offers secure solutions for consumers, merchants, mobile operators and financial institutions.

C-SAM's innovative solution is comprised of four components: One Wallet, Merchant Wallet, IrDA Converter and Wallet Service Center.

OneWallet is the name that C-SAM hopes will roll off the tip of every retailer's technological tongue. In allowing consumers to purchase over the mobile Internet or in the real world through C-SAM's IrDA Converter or C-SAM's Merchant Wallet, the OneWallet application offers the following:

Mobile device purchases and payments at physical locations without modification of existing retail infrastructure. Mobile device functionality as POS units by securely accepting infrared information from the customer and processing through a mobile network.

By developing one of the industry's first client-based digital wallet and associated payment platform on mobile devices for physical, virtual and proximity transactions, C-SAM enables card providers to electronically issue plastic cards to consumers, retaining brand identity and images while storing magnetic strip and smart chip information directly on the device.

C-SAM's patented OneWallet offers the same form factor and functionality as a traditional wallet by storing digital versions of plastic credit and debit cards and maintaining receipts as well as other personal info on a mobile device. OneWallet interfaces with C-SAM's Web-based Wallet Service Center, in info-mediary that aggregates and archives personal and transactional data, creating consumer profiles for customized, value-added services.

C-SAM's platform, which interfaces between mobile devices and existing retail infrastructure, is appealing to ISOs. C-SAM's IrDA Converter accepts infrared info from a mobile device and translates it into magnetic-stripe format compatible with conventional readers and POS terminals. The data is securely sent from the mobile device using one-time symmetric encryption. An added bonus is that the Converter also can support bi-directional interfaces with OneWallet devices, providing targeted coupons and promotions for consumer-friendly transactions.

To conduct a transaction with a mobile device in the real world, a C-SAM OneWallet user beams card info from the infrared link on a cellular phone or PDA to the Converter in the POS terminal. The receiving interface on the Converter writes the data out to a set of embedded coils, acting as electromagnets generating a magnetic field. This process emulates that of a card being swiped through the POS terminal. Current back-end systems for verification and authorization are maintained.

The low-cost, credit card-size Converter can be inserted in the POS terminal only when a mobile device user wishes to conduct a transaction, thereby avoiding permanent and expensive infrastructure modifications to the installed base of approximately 20 million POS terminals worldwide.

Additionally, the transaction can be facilitated by C-SAM's Wallet Service Center, constantly updating the OneWallet user's account while communicating with the acquirer/host system to record the transaction. The WSC can even send a receipt to the user's OneWallet device. More information: www.c-sam.com.