The Irish banking community needs to support electronic commerce over the Internet in order for it to realise its potential for Irish business.

According to Mr Sean McNamee, managing director of Irish networking company, LAN Communications, there are already reliable and secure mechanisms in place to pay for goods and services over the Internet.

"Until the banks get behind e-commerce, Ireland will lag behind the rest of the world in e-commerce development. If these mechanisms are used properly consumers have nothing to fear.

"I am concerned that if we don't move more quickly we will be left behind in a market which, if all goes to plan, will be worth £400 million in Ireland by the year 2001."

Mr McNamee was speaking at the official opening of LAN Communications' new 14,000 sq ft facility at Western Parkway Business Park in Dublin. The ceremony was conducted by the Minister for Public Enterprise, Ms O'Rourke.

With the Department of Public Enterprise making a huge effort to introduce a high bandwidth infrastructure, LAN Communications' technical director, Mr Mike McGrath, said the next step is driving the applications. Financial institutions stand to gain most from electronic commerce, but so far they have failed to take the risks involved in driving it forward.