Name : Vadadoriya Subhash S.

En No. : 120590116011

Sem. : 5th

Branch : Information & Technology

E-WALLET

Key Points Vision What is a Digital Wallet? Types Of Electronic Wallet Components Technology NFC Payment Model Architecture Features Advantages and disadvantages How it is being used right now?

Vision

In the past few thousand years, the way we pay has changed just four times—from barter system to coins, to paper money, to plastic cards.Now we’re on the brink of the next big shift. We now want to introduce the digital wallet, which contains the virtual versions of our existing plastic cards.

WHAT IS A DIGITAL WALLET? A digital wallet is a software component that allows a user to make an electronic

payment with a financial instrument and hides the low-level details of executing the payment protocol that is used to make the payment.

A digital wallet allows a user to make an electronic payment with a financial instrument (such as a credit card or digital cash), and hides the low-level details of executing the payment protocol that is used to make the payment.

It authenticates the consumer through the use of digital certificates or other encryption methods, stores and transfers value, and secure the payment process from the consumer to the merchant.

It can hold other than payments like Bank account details, Credit cards, Gift coupons and reward certificates, Loyalty cards Offers.

Types Of Electronic Wallet

Client Side electronic wallet

Electronic wallet

Server Side electronic wallet

Server Side Electronic Wallet A server side electronic wallet stores a customer information on the remote server

belonging to a particular merchant or wallet publisher

Client Side Electronic Wallet A client side electronic wallet stores customer information on his/her own computer.

Many of the early electronic wallet were client side wallet that require users to download the wallet software.

COMPONENTS

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 and are easily self-maintained and fully compatible with most e-commerce Web sites.

A server-side digital wallet, also known as a thin wallet, is one that an organization creates for and about you and maintains on its servers. Server-side digital wallets are gaining popularity among major retailers due to the security, efficiency, and added utility it provides to the end-user, which increases their enjoyment of their overall purchase.

The information component is basically a database of user-inputted information. This information consists of your shipping address, billing address, payment methods (including credit card numbers, expiry dates, and security numbers), and other information.

TECHNOLOGY Secure Communication Medium

• New NFC (Near Field Communication) chips are already appearing in smart phones which provide very close range, low power, easy to setup up point-to-point communication.

• NFC acts as the communication medium for exchanging monetary and identification information, such as credit card numbers and receipts, with other devices.

Fast Secure Authentication and Secure Tamper Proof Storage

• Secure programmable chips in cell phoneswill allow the cell phone to securely store both “digital cash” and the phone owner’s monetary and identification implements.

• This assumes that the cell phone owner secures his digital wallet with a good password. This chip will ensure that thieves are unable to access the digital wallet embedded in the stolen phone. Biometric scannerscould also be integrated into cell phones andused for quick and easy authentication.

OPERATION OF NFC

Near field communication is based on inductive-coupling.

NFC works using magnetic induction between two loop antennas located within each other's 'near field’.

Operating frequency 13.56 MHz @ the data rate 106 Kbit/s to 424 Kbit/s.

NFC use an initiator and a target; the initiator actively generates an RF field that can power a passive target.

How it Works?

Sender Mobile sends request to Transfer Money.

System checks available balance in Sender’s A/C from that particular Bank.

It transfers money from senders A/C to receivers A/C.

After a successful money transfer it sends a confirmation notification (SMS/Email) to receiver.

Money can be send and/or receive from PayPoints.

PAYMENT MODELS For point-of-sale transactions:-

A NFC-compatible “reader pad” can be deployed in retail stores.

When payment is required, consumers place their cell phone on/near the pad and all their valid payment options appear on a display.

They can then select the payment method they plan to use (cash, specific credit card, etc.) for the transaction.

The pad transmits the transaction request to the appropriate financial institutions using existing banking protocols provided by NETS, Visa, Amex, and MasterCard.

The consumer can provide any necessary signatures using a digital signature pad located next to the reader pad.

Once the transaction is verified and completed, the receipt is automatically sent to the cell phone and stored for future reference.

For peer-to-peer cash exchange, use the phone’s NFC capability together with an easy to use peer-to-peer cash application. Using the application, the payer can enter how much cash he needs to send to the other person. The payer then taps the cell phone of the payee and the cash is transferred instantaneously using NFC. The recipient is then informed of the exact amount transferred.

HOW TO SUPPORT CASH TRANSFER

Place cash in the digital wallet either by :

a) Topping-up the cash on device at specific top-up machines which are integrated with existing automated teller machines

b) Online by logging intobank’s online portal and transferring cash into phone.

Transferring that cash to a retailer or another digital wallet by using NFC.

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, for example, it may be

queried to determine which instrument

classes and instances are available to execute a given

payment or other operation

Provides the wallet with an interface to send and receive

messages between wallets and peer

commerce components 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.

Manages information about clients and

groups of clients of the wallet including their

user names, passwords, ship-to and bill-to addresses, and potentially other user profile information as

well

Presents a consolidated interface for the wallet

to the client. The Wallet Controller hides the complexity of the other components of

the wallet, and provides a high-level

interface to the client.

Builds on top of the connection abstraction to support the concept

of a session. Responsible for

encryption of data.Provides a graphical

interface to the services offered by the

Wallet Controllers interface

WALLET ARCHITECTURE

FEATURE OF E-WALLET

Refillable

Infinite lifetime

Current balance can be stored and read

User authentication is provided

Universal access

Maximum possible cash

Cannot be duplicated

Salient features of e-Wallet:

More than 40 years of data retention

Firewall encrypted security logic

Compatible with many supporting hardware.

No separate card reader is required to access our card

Polarity reversal indicator is pre-built in our card.

Reusability of our card is unlimited.

Multiple card features are incorporated in the same card.

External complexities are less

ADVANTAGES

Ease of use:

Withdraw or deposit value by telephone

Pay the exact amount, no fiddling for change

No signature required

Immediate payment

• Flexibility:

Transfer value by telephone

Pay person to person

For low or high values

Multi-currency capability

No age limit, so suitable for all the family

Safety and control:

Spend only what you have

Read your balance

Load value at home

Lock your card or wallet

Keep track of what you have spent and where

Customer is traceable if a lost card is found

• Accessibility and convenience:

Cash machines and telephones give more access points to funds in bank account

Available 24 hours / 365 days

Cash machines and telephones cannot run out of electronic cash

DISADVANTAGES

System Outages: Information for digital wallets are stored on the cloud of business servers; therefore, the risk of a system malfunction or shut down is always present. As a result, businesses will not be able to process payments or they will become increasingly slow due to high traffic in the servers.

Security: Companies must ensure that their customers' information is encrypted and well protected. One of the biggest concerns of adopting a digital wallet application is "will my information be safe"? This is the hurdle that companies must face and as a result, must develop security systems that are as safe and full proof as possible to avoid potential security issues.

Stake Holder Dynamics: Satisfying the business and strategic goals of multiple stake holders such as banks, retailers, regulatory bodies, is difficult.

Compelling user experience: A user-friendly wallet interface, easy to use and intuitive is difficult to produce.

How it is being used right now?

There are many different companies offering E-Wallets. Although each one is a little different, they all perform the same basic tasks. Some of them are:

SQUARE Wallet

GOOGLE e-wallet

PayPal

ISIS

Venmo

Dwolla

SQUARE Wallet

Square Wallet lets you link a debit or credit card to your Square account and pay with it anywhere Square payments are accepted. If someone sends you a Square gift card you can also store that inside the Square Wallet app for use whenever you're at that merchant. For some places of business, you can even choose items from inventory and have your sale ready before even getting to the cash register.

GOOGLE e-wallet

Google Wallet, currently available for purchases in the United States, lets you save all your loyalty cards in once place. You can also make payments online and at any merchant that has a card with credit attached to it. If you need to send money to someone, you can do so for free as long as they're using Google Wallet as well. Google Wallet offers tap to pay for NFC-enabled devices

PAYPAL

PayPal is one of the most accepted payment services on the planet. Lots of physical merchants can also let you pay with PayPal, no actual credit card needed. The PayPal app can use your location to determine what merchants around you let you pay with PayPal. Once you're at the checkout, just tell them you're paying with PayPal instead of cash or a card. You'll just have to enter your mobile number and PIN and you're good to go. PayPal just deducts the funds from whatever bank account or credit card you have linked.

ISIS

Isis is available to both AT&T and Verizon customers and offers the same tap to pay functionality Android users currently enjoy with NFC. The only catch? You'll need to buy an accessory case to make Isis work. After that you can add all your payment cards, including American Express Serve and Chase bank cards, and start tapping to pay at literally thousands of merchants with tap to pay terminals.

Example for transaction:

THANK YOU!!