Because of the benefits realized by using the wireless PDAs on campus, we expect that in 2007 there will be a push from another group of users who may not always be able to connect to the campus wireless network. This group includes a number of truly mobile operations such as shuttle busses, food delivery services and taxis that serve the campus community and would also greatly benefit from access to real-time campus card transaction processing technology.

Although many cities are now setting up wireless hot spots in their downtown areas, it will likely be a number of years before this becomes the norm. Meanwhile, mobile merchants will need a way to process transactions while serving customers located both on and off-campus. In order to accommodate this, we envision that campuses will begin using cellular phone technology to bridge the gap and provide real-time transaction processing capabilities for these vendors regardless of where they are located. Because these merchants may have the need for literally dozens of card reader units, it will be important that they be provided with not only a robust solution, but also a cost effective one.

To the advantage of the campus card industry, there have been numerous advances in this area not only for use by merchants, but also consumers. The time is right for expanding the acceptance of campus card payments beyond traditional boundaries and we expect this and other technological developments to make 2007 another year of innovation in the campus card marketplace.

About the author: Before joining Sequoia in 2003, Mr. Diaz was Director of the DukeCard System at Duke University, where he worked for 11 years.