Encryption means safer m-commerce

Trials are underway on a new encryption system that enables legally binding signatures to be sent digitally by mobile phones. It could secure mobile transactions, but some analysts doubt that it will be widely used because handsets need special SIM cards to support the system.

The UK Radiocommunications Agency (RA) is piloting the software, which was developed by Vodafone and security services firm Secartis. It is one of the first mobile implementations of a public key infrastructure (PKI) system. Thomas Koelzer, chief operating officer at Secartis, said, "It is the first time security has been separated from the application."

The software can work with about 90 percent of mobile phones but requires the replacement of the SIM card. Staff at the RA, are providing the trial data. They input their travel expenses at a Web site and also transmit digitally-signed summaries by mobile phone.

Koelzer said Vodafone can now chase extra revenues. For example, it could receive a royalty on each transaction.

Jamie Moss of analyst firm The Strategis Group, said there is a need for security for mobile commerce, but doubted that users would want the system if they have to pay extra or change their mobile devices. "The tendency among users is that the larger the cost the more they want direct contact with humans," he said.

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