Palm’s demonstration follows on the heels of Nokia’s announcement, last week, of its Smartcover wireless e-payment technology. Nokia’s e-payment technology is encased in the phone’s cover. In contrast, Palm has embedded the technology into the device itself. In addition, Nokia’s smartphone will enable the user to pay for purchases, where the Palm’s e-payment device will enable the user not only to make payments via an infrared beam but also to receive and respond to personalized services. Palm, furthermore, is developing solutions that will allow a driver’s license, healthcare card, and passport, or any personal ID information, to be stored on a Palm handheld.

• When ready to pay for their purchase, the consumer simply points the Palm handheld in the direction of the POS terminal and pushes a short-cut button to activate the eWallet.
• The device will prompt the customer to select a method of payment such as credit card.
• The customers will enter their PIN number.
• The terminal sends the secure information to the merchant’s account.
• Customer receives hardcopy of receipt as well as a digital one.
• The purchase will appear on the customer’s next credit card bill.

To turn its vision into a reality, Palm has been working with Ingenico and VeriFone, a division of Hewlett Packard Company, both providers of credit card payment infrastructure in Europe and the U.S., respectively.

To make it simple for customers and merchants alike to take advantage of the new technology, Palm has worked with the two companies to enable the secure link between the existing consumer handhelds and the merchant’s current infrastructure. The necessary IR receiver can be added to standard POS terminals, however, Bluetooth technology may provide the communications link in the future, the company said.

Ingenico has immediate plans to roll out the initial pilot solution in Europe, while VeriFone expects to launch its U.S. pilot later this quarter.

In addition, Palm is collaborating with VISA International on such value-added e-services as easy-to-use statements via a handheld.