Future development and expectations

Future development should include the standardization of Digital Wallet technology. According to Jupiter Communications, XML will become the mechanism for a standardized client wallet built into a browser or an operating system. Many larger Web sites are already deriving value from reorganizing back-end systems to use XML as a data interchange format.

By monitoring the development of XML "document-type definitions," or DTDs, merchants ensure that wallet-related standards include the functions that they wish to offer consumers. These functions may include integration with loyalty programs or coupons for instance. Once XML becomes widely accepted, the standardization of DTDs within vertical arenas such as digital wallets will proceed quickly compared with typical technology standardization cycles.

Early action on the part of XML-capable merchants will be crucial in defining the prevailing DTDs. An investment today in any available end-to-end wallet standard is unnecessary: Sites should give the bulk of consideration to server-side wallet networks until a standard wallet client emerges.


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