ollowing are some new technologies and market segments that I think will take off in the coming year in the payment processing industry.

IP-based Processing

Because of the need for speed in the marketplace and the cost saving capabilities, companies are certifying more and more networks, terminals and software products for Internet protocol (IP)-based processing.

Any busy establishment such as a nightclub, theatre, independent grocery store and convenience store that has a multi-lane setting and the need for quick transaction times will benefit from using high-speed transaction processing.

Integrated Solutions

Merchants who need to integrate multiple locations or terminals into a single payment and reporting system might also benefit from using high bandwidth technology. Retailers are always looking for ways to integrate their payment processing with a back-end system for data retrieval, reporting and reconciliation.

IP processing is not exclusively about speed. Merchants can now take advantage of the powerful networking capabilities that the Internet provides. Networking processing, inventory and accounting systems together in one location can drastically help companies run more efficiently and effectively.

Wireless

No longer is spotty coverage a major hindrance for wireless transactions. Today, wireless processing is faster than landline transactions and portability is becoming more attractive to many service related industries. A benefit wireless processing provides is a transaction time of around three to five seconds, and combined with a speedy thermal printer, generates customer receipts in an instant.

Wireless technology helps save merchants money on processing by allowing them to pay the swiped retail rate while out in the field, which will help eliminate chargebacks caused by bad cards and hand-keyed transactions.

Business-to-business/Government Processing

Visa estimates that business-to-business (B2B) and government markets will generate $14.4 trillion in spending by the end of 2004. That indicates a tremendous amount of opportunity for ISOs and merchant level salespeople (MLSs) in 2005 in a surprisingly underserved market segment.

The B2B space includes businesses that sell to other businesses, large corporate clients and the government. With the advent of level-3 processing programs, ISOs and MLSs can now address the needs of these large corporate and government accounts and focus on a new frontier of payment processing sales opportunities.

Peter Scharnell is Vice President of Marketing for Electronic Exchange Systems (EXS), a national provider of merchant processing solutions. Founded in 1991, EXS offers ISO partner programs, innovative pricing, a complete product line, monthly phone/Web training, quarterly seminars and, most of all, credibility. For more information, please visit www.exsprocessing.com, or e-mail Peter at peter.scharnell@exsprocessing.com . EXS is a registered ISO/MSP for HSBC Bank USA, National Association.