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Seminar Presentationon

Digital Wallet

BY

LOKESH JAJOO

DEPARTMENT OF COMPUTER SCIENCE & TECHNOLOGY(6th SEM)

ACADEMY OF TECHNOLOGY

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What is Digital Wallet

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• Digital wallet is the digitized version of traditional leather wallet, to safe keep your

money, credit cards, etc.• A digital wallet refers to an electronic device

that allows a user to make an electronic payment with a financial instrument (such as a

credit card or digital cash)• It hides the low-level details of executing the

payment protocol that is used to make the payment

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Why Digital Wallet ????

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• There are about 1.3 billion active credit and debit accounts in the world today, there are approximately 5.3 billion active mobile phone accounts. Payment-enabled mobile phones could quickly outnumber traditional card based payment accounts.

• Thick, bulky, unmanageable physical wallet replaced !!

• They may also allow you to store multiple payment types (cards, bank accounts).

• In addition to providing consumers with a new way to make payments, mobile devices represent a new channel for merchants and financial institutions to communicate with their customers

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Quick Scan of its History

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How it evolved .....

Types and componentsDigital wallets are categorized into three kinds:• Closed Wallet: by a company to a consumer for buying goods and services

exclusively from that company. E.g. Flipkart , Oyo rooms, Ola

• Semi-Closed Wallet: Used to buy goods and services at clearly identified merchant locations or establishments. Prepaid services are used .

Do not permit cash withdrawal or redemption E.g. Paytm , Oxigen Wallet ,Airtel money etc .

• Open Wallet: Used for purchase of goods and services ,for funds for cash withdrawal from ATM. Eg. MasterCard, VISA, RuPay, etc

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A digital wallet has a software and information component. The software provides security and encryption for the

personal information and for the actual transaction. Normally, digital wallets are stored on the client side stores

customer’s information. A server-side digital wallet, is the one that an organization

creates for and about you and maintains on its servers. The information component is basically a database of user-

inputted information like shipping address, billing address, payment methods ,credit card numbers, expiry dates

COMPONENTS

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User Profile Manager

Instrument Manager

Protocol Manager

Communication Manager

WalletController

UserInterface

ClientAPI

UserInterface

API

Instrument Instances

Protocols

Manages all of the financial instrument

options contained in the wallet.

Provides the wallet with an interface to send and

receive messages between wallets by setting

up a connection with a remote Communication

Manager.

Manages all of the protocols that the wallet may use to accomplish various operations, and

invokes protocols to carry out the interaction

between the digital wallet and the vendors and

banks. Responsible for encryption

Manages information about clients and groups

of clients of the wallet including their user

names, passwords, ship-to and bill-to addresses, and

other user information

Presents a interface for the wallet to the client. The Wallet Controller

hides the complexity of the other components of the

wallet.

Provides a graphical interface to the services

offered by the Wallet Controllers interface

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WALLET ARCHITECTURE

Technologies used in Digital wallet (NFC), a short-range wireless technology that allows you to pay for goods by swiping a device

Tokenization, is the process of substituting a sensitive data element with a non-sensitive equivalent, referred to as a token,.

The cloud is where companies and people store and access information on remote servers, rather than on specific devices.

A scannable barcode which can be read by certain mobile applications (by taking a photo of the barcode) and convey information such as a URL etc.

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 encryption is the process of encoding

messages or information in such a

way that only authorized parties can

read it

How the transaction is carried out …..

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How does it ensures Security …

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How its trending !!!

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The Major Players

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Benefits

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Other advantages :• Offers• Coupons• Loyalty rewards• Flexibility and

ease of use

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The other side of the Coin

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Trivia In India : • Paytm, started in Jan 2014 ,reached 20 million users by Dec,2014 and

100 million by the end of July ‘15.• Airtel money  (with 192.22 million subscribers as of August 2013) has

been a popular mobile payment system(Semi-Wallet)•  Immediate Payment Service (IMPS) is provided by  the Reserve Bank of

India. It offers instant, 24×7, interbank electronic fund transfer service through mobile phones.

• In a survey conducted by etailing India that how often people use digital wallet 37% of the respondent say weekly while 26% of the respondent preferred monthly usage of digital wallet while 17% daily

Outside India: • 92% Kenyans use M-pesa for Mobile payment• 54% transactions in Alipay are on mobile• In an online Survey by Business Intelligence , 58 % found Digital wallet insanely cool

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ConclusionAs all areas of life become more mobile, take care of your digital wallet in a similar way you would your actual wallet. Instead of double-checking to make sure your billfold is ensconced in a backpack, purse or man-bag, rely on mobile data security to keep you protected. It’s the best way to keep your financial information safe from invisible hacker "mitts" reaching in to steal your ducats.

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http://www.webroot.com/in/en/home/resources/articles/mobile-security/mobile-payment-technology

https://www.chasepaymentech.com/mobile_wallet_technology.html

References

THANK YOU !!! 23