Just when you thought you understood e-commerce and m-commerce someone invents a new prefix.

The latest is u-commerce and its author is Mr Glover T Ferguson JR, chief scientist with Accenture.

In Mr Ferguson's world, almost every object, device or vehicle will become a platform for transactions. Computers, mobile phones and PDAs are merely the first examples of this trend.

"This is u-commerce and its ubiquitous. It is part of the environment and part of the person," says Mr Ferguson. "It consists of lively communicative objects delivering services through context."

No self-respecting scientist travels without props and Mr Ferguson is no exception. Reaching into his pocket he takes out a tiny microprocessor capable of storing large amounts of data.

"This could be a button on a shirt or smart tag for inventory," he explains. "It can make your inventory able to talk back so that purchase dates can be stored on it or sales tax can be tracked."

Driving this era of micropayments is the low cost of introducing processes conducted by devices that can communicate with each other, according to Mr Ferguson.

This technology enables the authorities in Singapore to automatically charge cars that enter the city centre. And US firms are trialling ways of charging insurance by the mile, he says.

"The magic we are seeing now is cutting wires - that's important," he says. "That opens the door to sensors providing a continuous stream of information and that is more context."

As chief scientist with one of the world's largest technology consultants, Mr Ferguson is paid to take gambles on technologies and is generally bullish on the sector.

However, he admits there will be some difficulties ahead as companies strive to come to terms with the complexities involved with some of the newer technologies.

"We've already seen a backlash towards m-commerce, WAP didn't take off and bluetooth [a technology that enables electronic devices to communicate with one another over short distances] may not be quite as timely," says Mr Ferguson.

Earlier this week, demonstrations of bluetooth technology at the CeBIT 2001 conference were less than impressive. Concerns remain that the specifications for the technology are really hard, says Mr Ferguson.

The Republic's domestic technology sector will endure a painful period in the short term but its long-term prospects are good, he says.

The policy to attract talented individuals and technology means the State was now well placed.

"Technology companies create business which attract people," says Mr Ferguson. "People who left years ago are coming back and that's very different from just about anywhere else in the world.