As new charging methods evolve, cash transactions will become rarer than credit card companies and mobile network operators will begin to take on more of the role associated with banks. Credit card companies are already well along this route, but it's the mobile operators that potentially have the most to gain by being the first to benefit from microbilling. Microbilling involves the payment of sums normally considered too small to be profitableby financial institutions. It may have been a gimmick, but Coca-Cola has produced a vending machine that allows purchases to be made via a WAP phone. In Norway, plans are in place for train tickets to be bought and stored on a mobile phone.
Trials are due to start next year.
Other financial services have also moved online. This month's report also covers mortgage provision, insurance and share dealing. With the exception of the latter, it isn't possible to conduct business solely over the Internet. Legal requirements mean that electronic transactions must be backed up by physical proof, usually in paper form. PKI systems will help, as will proper digital signatures, but such solutions are still years away.