Internet analyst Mamoun Tazi, of investment bank Schroder Salomon Smith Barney, said investors in e-commerce stocks were nervous about online security.

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Until people feel their privacy and security online are assured, e-commerce won't explode.

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The document goes on to describe an alternative method using face or eye recognition technology that can be used not just for security purposes, but for possible e-commerce solutions like completing an online transaction.

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Not only does boosting its security technology increase its integrity among users as an e-commerce hub, e-signature technology could help Google (NASDAQ:GOOG) develop its mobile payment capabilities to compete.

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Basically, companies should be careful in selecting firms to set up and host their e-commerce sites by getting references, using established firms and asking about privacy and security upfront, the experts said.

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To make a purchase on a website, a MasterPass user would enter a password on the checkout page of a merchant who has installed the service as a payment option instead of typing in their card number, security code and other information that experts say slows down e-commerce transactions.

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