InformationWeek

nline retailing should get a boost this week from two new services. One will make it easier to shop from any Internet-connected computer, and the other will let consumers pay for products without entering a credit-card number at each retail site.

Startup SingleSignOn.Net is launching a service that works with bank partners and uses public key infrastructure to offer a secure means for consumers to use any computer for online shopping. A customer enters an ID and password at a retail site, which asks the issuing bank to confirm the identity. The bank sends a digital certificate to the retail site, verifying the identity. The authorization then travels with the customer from site to site, until the computer is shut down.

Sponsoring banks buy a digital certificate for each customer at an annual price of 50 cents, or less "at high-volume levels," CEO Ravi Ganeson says. "We're marrying the ease of passwords with the security of PKI, so you get the best of both worlds. We call it practical PKI."

For single sign-on to really take off, "someone will have to develop a rules set that explains who's liable under what circumstances," says Scott Lawry, president and CEO of Digital Signature Trust Co., a certificate authority in the financial-services industry. "The banking industry solved that problem for the credit-card space, and we think they'll solve it for the credentials space as well."

Another approach will be offered by Providian Visa, which this week will roll out its latest Java-based smart card, whose 32-Kbyte memory chip holds identification information and can automatically supply retail sites with a credit-card number and bill-to and ship-to addresses. It also holds data for loyalty and reward programs. The credit card employs 128-bit encryption and can be used for online and offline purchases.

To use Providian Visa for online purchases, consumers need a card reader, which Providian sells for $19.95, to attach to their computers. The card would eliminate the need to enter credit-card numbers, billing information, and shipping addresses on any site that accepts it.

Software turns the Providian card into an E-wallet that actually loads purchasing functionality onto the memory chip. It's more than just a security device, says Tower Group analyst Ted Iacobuzio. "That's a big step ahead."