Are we edging towards the elimination of paper-based financial transactions? With the newly formed partnership of VeriFone, a division of Hewlett-Packard, and Palm, Inc. working to secure the transfer of payment on Pam handheld devices, we may be just one-step closer.

Under the terms of a non-biding memorandum, the two companies will initially work together to enable the Palm user to securely transfer financial payments from their handheld device to a VeriFone POS payment terminal, using infrared technology, then onto a payment network of a financial institution. The next goal will be to enable Palm handhelds to access third party content through a VeriFone payment terminal.

"Through our work with VeriFone, we also expect to offer physical and on-line merchants a new way to enhance the customer’s experience with access to new, useful content though their Internet-enabled VerifFone POS terminal," said Doug Solomon, Chief Strategy Office of Palm.