We demonstrate that satellite observations of intense transverse ion energi
zation could be explained by stochastic ion heating on short perpendicular
wavelength electrostatic waves and structures produced by the decay of disp
ersive Alfven waves (DAW) This mechanism is related to the chaotization of
ion orbits which leads to strong stochastic heating when the electric field
gradient fulfills the inequality partial derivative E-x/partial derivative
x > Omega B-0 (here Omega is the ion gyrofrequency and B-0 is the ambient
magnetic field). We also show that the energy sourer for this process is pr
ovided from dissipation of the Poynting flux of DAW. which appear to form a
n energy cascade from large scales lambda(perpendicular to) similar to kilo
meters down to lambda(perpendicular to) similar to 50 m where the dissipati
on through the ion heating is observed.