Mobile digital signatures are a proving success, according to new research.

Forrester Research analyst Bill Nagel claimed that mobile authentication has taken hold in many countries, and that mobile signatures are a "logical extension".

"Nearly all of the banks and operators we spoke to said that the technology operates flawlessly and that the experiences of customers who use the system are very good," he said.

Mobile signatures can transform any mobile phone into an identity card and signature pen for online and mobile services.

A user-chosen numerical password, or signing Pin, tells the Sim card to generate a digital signature. The signature is then sent via encrypted SMS, and the password remains inside the secure Sim and is not exposed over any network.

Beyond secure online banking and e-commerce, mobile signatures enable a wide range of other value-added consumer and corporate services, according to Nagel.

"All of these are based on the concept that a mobile phone and Sim card are the smartcard and reader you always have with you," he said.

Forrester interviewed 15 vendor and user companies, including Valimo Wireless.

"This latest report highlights the benefits of mobile signatures and identity, but also sheds light on some of the challenges we face," said Valimo chief executive Matti Rusi.