1

A

Seminar Report

ON

“Money Pad the Future Wallet”

Submitted in partial fulfillment of the requirements for the award of thedegree of

Bachelor of TechnologyIn

INFORMATION TECHNOLOGY(2010 -2011)

By

Department of Information Technology

BALDEV RAM MIRDHA INSTITUTE OF TECHNOLOGY(EAST CAMPUS)

JAIPUR

SUBMITTED TO: - SUBMITTED BY:-

MANOHAR PRAJAPATI Komal Sharma (SEMINAR CORDINATOR) E08IT030

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BALDEV RAM MIRDHA INSTITUTE OF TECHNOLOGY

JAIPUR

Department of Information Technology

CERTIFICATECERTIFICATEThis is to certify that the Seminar titled

“Money Pad the Future Wallet”

is a bonafide work carried out by following final year student

Komal Sharma

Under our guidance towards the partial accomplishment for the award

of the degree of Bachelor of Engineering (Information

Technology) by RAJASTHAN TECHNICAL UNIVERSITY during

the academic Year of 2011 –2012, of required standard.

SEMINAR CORDINATOR HEAD OF DEPARTMENT [Mr. Manohar Prajapati] [Ms. Kuntal Gaur]

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ACKNOWLEDGEMENT

Achieving a milestone for any person alone is extremely difficult. However there are some

motivators who come across the curvaceous path like twinkling star in the sky and make our

task much easier. It becomes our humble and foremost duty to acknowledge all of them.

My ethical accountability is to be extremely indebted to Ms. Kuntal Guar (HOD-IT)

for his excellent guidance. I am highly obliged and thankful to my seminar guide Mr.

Manohar Prajapati, who provided immense support as answer to my extreme queries that i

kept firing at them during the preparation of the seminar. I would also like to thank Mr. (Any

other faculty) whose support and cooperation helped in conducting the study smoothly.

I owe my sincere thanks to Principal Mr. B. Srinivasan (BMIT, East campus), who

provided me required guidance and facility.

Last but not least, we pay our sincere thanks and gratitude to all the staff members of

Baldev Ram Mirdha Institute of Technology, to provide excellent opportunity and

environment throughout my preparation of the seminar. I am also thankful to all our

colleagues and staff members for their co-operation and support.

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PREFACE

Seminar Presentation forms an integral component of any professional course. The institute

where we pursue our studies cannot provide that practical knowledge on all aspects of

learning. Often the study of a subject is said to be incomplete until the student has been

exposed to its practical aspects. The theoretical studies provide the pools of knowledge

whereas the practical application make agile and competent.

As the important part of the engineering curriculum, each student has to undergo

through the Seminar Presentation. This B.Tech. course Seminar helps a student in getting

acquainted with the manner in which his/her knowledge is being practically, normally

different from what he/she has learnt from books. Hence, when the student switches from the

process of learning to that of implementing his/her knowledge, he/she finds an abrupt change.

This is exactly why this seminar session during the B.E curriculum becomes all the more

important.

Seminar presentation is prescribed for the student of Technical College as a part of

the four year degree course of engineering by the AICTE. We are required to give the

presentation on any of the current topics or technology.

As an engineering student, I had opportunity to study and present the seminar on “Money Pad

the Future Wallet” topic.

Komal Sharma

(E08IT030)

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Table of Contents

1. Abstract………………………………………………………………….62. Introduction…………………………………………………………….7 3. Keywords……………………………………………………………….104. Forms of Money……………………………………………………….135. E-Wallet………………………………………………………………..156. Technical Details of Paper…………………………………………….177. Operation of Money Pad………………………………………………278. Why Use Money Pad…………………………………………………..289. Transaction using Money Pad………………………………………...2910.Technical Implementation…………………………………………….3011. Fields of Application…………………………………………………..3112. Future Scope…………………………………………………………..3213. Conclusion……………………………………………………………..3314. Reference………………………………………………………………34

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1. Abstract

"Money in the 21st century will surely prove to be as different from the money of the current

century as our money is from that of the previous century. Just as fiat money replaced specie-

backed paper currencies, electronically initiated debits and credits will become the dominant

payment modes, creating the potential for private money to compete with government-issued

currencies."

Just as everything is getting under the shadow of “e” today we have paper currency being

replaced by electronic money or e-cash. Hardly a day goes by without some mention in the

financial press of new developments in "electronic money". In the emerging field of

electronic commerce, novel buzzwords like smartcards, online banking, digital cash, and

electronic checks are being used to discuss money. But how are these brand-new forms of

payment secure? And most importantly, which of these emerging secure electronic money

technologies will survive into the next century?

These are some of the tough questions to answer but here’s a solution, which provides a form

of security to these modes of currency exchange using the “Biometrics Technology”. The

Money Pad introduced here uses the biometrics technology for Finger Print recognition.

Money Pad is a form of credit card or smartcard, which we name so. Every time the user

wants to access the Money Pad he has to make an impression of his fingers which will be

scanned and matched with the one in the hard disk of data base server. If the finger print

matches with the user’s he will be allowed to access and use the Pad otherwise the Money

Pad is not accessible.

Thus providing a form of security to the ever-lasting transaction currency of the future “e-

cash”.

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2. Introduction

The 21st century will not be "cashless", as many now predict. However,

it does seem clear that the currency of the 21st century will be "paperless". Paper currency

and checks are gradually being substituted by smartcards, digital cash and instant transfers of

funds. The large paper bureaucracy of banks is quickly becoming redundant, burdensome,

and even out of date.

The evolution in digital money is happening so fast that banks cannot adopt quickly enough

and will eventually collapse like top-heavy giants, blown over by the winds of financial

change. Maybe, or may not be, but one trend is already clear.

The wallet of the future will hold less paper cash, coins and magnetic stripe cards. It will hold

instead Money Pad containing digital cash and other financial information, updated —

perhaps automatically — by a PDA with a satellite communication link.

As the new technologies develop into new ways of making payment, one concern naturally

arises. Will this technology protect each individual's right to privacy while providing the

sound money needed for the economic health of communities? The answer is simple — it

depends on how the new technology is used. There is nothing inherent in the technology that

makes it less protective of privacy and individual rights. Advancement’s like

Biometrics Technology has made individual privacy even more secure.

As developments in electronic money gather pace, protection of individual rights must be

kept in focus. Because the record of most governments so far in these early stages of

electronic commerce has been seen by many to be confrontational and not protective of

individual rights, it is likely that the preservation of these rights is one reason that private

currencies are likely to emerge on the Internet and to eventually play an important role in

global commerce.

In order to protect the rights and properties of each individual we thought of providing a

security system, which every human being can understand and feel free to use.

Human beings feel secure when they have their own security arrangements to protect their

rights and as well as wealth. Keeping this point of view in mind the Biometrics Technology is

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used to develop an e-cash handling system, which is similar to well known credit cards and

smartcards.

The e-cash handling system is a device that facilitates secure currency transactions. We call it

as Money Pad which recognizes Finger Prints of the user and decides whether the user is a

authorized person or not. Every time the user wants to access the Money Pad he has to make

an impression of his finger, which will be sensed and matched with the one in the hard disk.

If the finger print matches with the user’s he will be allowed to access and use the Pad

otherwise the Money Pad is not accessible.

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2.1 Description:-

1) Field of the Invention:-

The present invention relates to an electronic wallet

management system which controls electronic wallet devices for monetary data transfer, an

electronic wallet device itself, an electronic wallet management unit, a terminal station there

for, as well as to a storage medium containing an electronic wallet managing program. More

particularly, the present invention relates to an electronic wallet management system which

deals with the loss or failure of electronic wallet devices, as well as to an electronic wallet

device, an electronic wallet management unit, and a terminal station designed there for.

2) Description of the Related Art:-

Electronic wallet devices carry electronic money.

People use them to make payment electronically, without using real money. Electronic wallet

provides various advantages over cash, one of which is that payment can be made more

promptly because there is no need to give or receives the change. People may, however, lose

their electronic wallet devices at times. The loss of electronic wallet devices may be handled

variously, depending on their device type. For example, in the case of prepaid type devices,

which can be used without user authentication, there is no way for the loser to have his/her

electronic wallet reissued. This means that the loser would not be able to recover the

electronic money at all, unless he/she discovers the very device that is missing. In contrast to

this, such electronic wallet devices that require user authentication can be reissued at their

respective issuing financial institutions when they are lost. In this case, the monetary data

remaining in the lost electronic wallet will eventually be carried over to the reissued device,

thus allowing the owner to use it without problems. Reissuing of such an electronic wallet,

however, consumes a long time. Specifically, those that require later settlement, like

securities, may take a few months to be reissued. Another such example is banking cards,

which manage monetary data not directly, but only through the customers' bank accounts. It

takes a couple of weeks for the loser to get such a banking card reissued. What is worse is

that the customer cannot spend his/her own money during the time he/she waits for the

delivery of a reissued electronic wallet.

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3. Keywords

3.1 Money Pad3.2 Digital or Electronic Cash or Digi-case3.3 Personal Digital Assistance3.4 Biometrics Technology3.5 Finger Print Reader3.6 Float3.7 Fiat Money3.8 Specie – Backed3.9 Legitimate

3.1 Money Pad –

A form of credit card or smart card similar to floppy disk, which is introduced

to provide, secure e-cash transactions.

3.2 Digital or Electronic Cash or Digital Money–

These terms are also used

interchangeably, and they refer to any of the various methods that allow a person to purchase

goods or services by transmitting a number from one computer to another. The numbers are

issued by a bank and represent sums of real money. Digital cash is anonymous and reusable.

Electronic money (also known as e-currency, e-money, electronic cash, electronic currency,

digital money, digital cash, digital currency, cyber currency) is money or scrip that is only

exchanged electronically. Typically, this involves the use of computer networks, the internet

and digital stored value systems. electronic funds transfer (EFT), direct deposit, digital gold

currency and virtual currency are all examples of electronic money. Also, it is a collective

term for financial cryptography and technologies enabling it.

While electronic money has been an interesting problem for cryptography (see for example

the work of David Chaum and Markus Jakobsson), to date, the use of e-money has been

relatively low-scale. One rare success has been Hong Kong's Octopus card system, which

started as a transit payment system and has grown into a widely used electronic money

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system. London Transport's Oyster card system remains essentially a contactless pre-paid

travel card. Two other cities have implemented functioning electronic money systems. Very

similar to Hong Kong's Octopus card, Singapore has an electronic money program for its

public transportation system (commuter trains, bus, etc.), based on the same type of (FeliCa)

system. The Netherlands has also implemented a nationwide electronic money system known

as Chipknip for general purpose, as well as OV-Chipkaart for transit fare collection. In

Belgium, a payment service company, Proton, owned by 60 Belgian banks issuing stored

value cards, was developed in 1995.

3.3 Personal Digital Assistance –

A PDA, sometimes referred to as a palm-top computer, is

smaller than a laptop computer and does not have as much computing power. Used to send

email via a wireless modem, write documents in a text editor, perform calculations in a

spreadsheet, store names and addresses, and perform other common business and personal

tasks.

3.4 Biometrics Technology –

Technology used to accurately identify and verify an

individual’s identity.

3.5 Finger Print Reader –

A machine with read/write head capable of reading the

information stored in the Money Pad.

3.6 Float –

The transaction in terms of digi-cash, which takes zero-sum gain, is called float.

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3.7 Fiat Money –

Authorized money.

3.8 Specie-Backed –

Coined money.

3.9 Legitimate –

Law full.

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4. Forms Of Money

4.1 Hand-Cash4.2 E-Cash

1. Hand-Cash:- The amount of money in the form of cash that a company has after it has

paid all its costs.

Written at the top of the assets side of a balance sheet to show the amount of money held by a

company in the form of notes and coins.

If someone is paid cash in hand, they are paid in notes and coins so there is no written record

of the payment.

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2. E-Cash or Digital Currency:-

E-cash represent different types of products. This section explores the

different types of e-cash product and how each function.

Stored electronically, used to make online electronic payments

Similar to traditional bank accounts

Used with other payment technologies (digital wallets)

Alleviates some security fears online credit-card transactions

Allows those with no credit cards to shop online

Merchants accepting digital-cash payments avoid credit-card transaction fees

E-Cash Technologies, Inc. is a secure digital-cash provider that allows you to

withdraw funds from your traditional bank account

E-Cash diagram

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5. E-Wallet

Digital wallet (also known as an e-wallet) allows users to make electronic commerce

transactions quickly and securely.

A digital wallet functions much like a physical wallet. The digital wallet was first

conceived as a method of storing various forms of electronic money (e-cash), but with

little popularity of such e-cash services, the digital wallet has evolved into a service

that provides internet users with a convenient way to store and use online shopping

information.

The term “digital wallet” is also increasingly being used to describe mobile phones,

especially smart phones, that store an individual’s credentials and utilize wireless

technologies such as near field communication (NFC) to carry out financial

transactions

Keep track of your billing and shipping information so that it can be entered with one

click at participating sites.

Store e-checks, e-cash and credit-card information.

Credit-card companies offer a variety of e-wallets

Visa e-wallets

MBNA e-wallet allows one-click shopping at member sites

Entrypoint.com offers a personalized desktop toolbar that includes an e-wallet.

A group of e-wallet vendors have standardized technology with Electronic Commerce Modeling Language (ECML).

Context-independent knowledge

Name, email address, context-independent preferences

Context-dependent knowledge

“When driving, I don’t want to receive instant messages”

Service invocation rules

Automated service identification and access

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Map contextual attributes onto different resources (personal and public)

Privacy rules

Access control rules

“Only my classmates can see my location”

Obfuscation rules

“My classmates can only see the building I am in but not the actual

room”

E-Wallets

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6. Technical Details of Paper

6.1 Basic of the Present System6.2 Credit Card6.3 Smart Card6.4 Debit Card

Basic Of the Present System:

Presently due to the usage of computers in almost all the fields the demands for the utilization

of Electronic Money have been increased. Payments made today in nearly all of the deposit

currencies in the world's banking systems are handled electronically through a series of

interbank computer networks. Credit cards and smartcards are widely used to enter into these

interbank computer networks in order to perform transactions. These are the popular medium

widely existing as a recent medium of currency in the e-cash scenario. The mode of usage

and the security provided by these currency mediums are as follows.

6.2 Credit Card:-

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Credit cards are payment devices that allow the consumer to make purchases within certain

guaranteed limits as defined by the issuer of the card. To use a credit card in most cases it is

sufficient to present the merchant with the card number and the cardholder's name and

expiration date of the card. These data can be conveniently transmitted over the Internet.

Furthermore, credit cards process funds by electronic means. The user has to swap the card in

the card reader machine then the machine asks for authentication information like secret

password etc. Later the user is allowed to perform the transaction. These credit cards have

several disadvantages like.

Disadvantages:-

Instant clearing of fund is not possible.

User is always under the pressure of limits on purchase defined by the issuer of the

card and also every transaction involves certain charges.

Insecure transactions using fixed encryption.

The card has to be renewed once it is expired.

Different types of credit card:-

Benefits to merchants

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An example of street markets accepting credit cards

Credit cards are issued after an account has been approved by the credit provider, after which

cardholders can use it to make purchases at merchants accepting that card.

When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder

indicates his/her consent to pay, by signing a receipt with a record of the card details and

indicating the amount to be paid or by entering a Personal identification number (PIN). Also,

many merchants now accept verbal authorizations via telephone and electronic authorization

using the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction.

Credit Card

6.3 S martcards:-

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A smartcard resembles a credit card except that it has a microchip embedded within it, this

allows the smartcard to store information and sometimes to even perform simple calculations.

Common smartcard chips typically holds about 8,000 bytes (characters) of information,

which enables the smartcard to perform a variety of functions such as identification, storing

bank account information and holding digital cash. Payment information in the form of

currency value is stored on this chip and can be retrieved with specially designed card

readers.

Disadvantages:

Insecure transactions using fixed encryption.

Risk of data loss due to chip failure.

Smart cards can provide identification, authentication, data storage and application

processing.

The benefits of smart cards are directly related to the volume of information and applications

that are programmed for use on a card. A single contact/contactless smart card can be

programmed with multiple banking credentials, medical entitlement, driver’s license/public

transport entitlement, loyalty programs and club memberships to name just a few. Multi-

factor and proximity authentication can and has been embedded into smart cards to increase

the security of all services on the card. For example, a smart card can be programmed to only

allow a contactless transaction if it is also within range of another device like a uniquely

paired mobile phone. This can significantly increase the security of the smart card.

Governments gain a significant enhancement to the provision of publicly funded services

through the increased security offered by smart cards. These savings are passed onto society

through a reduction in the necessary funding or enhanced public services.

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Smart Cards IC chip diagram

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6.4 Debit card:-

A debit card (also known as a bank card) is a plastic card which provides an alternative

payment method to cash when making purchases. Functionally, it can be called an electronic

check, as the funds are withdrawn directly from either the bank account (often referred to as a

check card), or from the remaining balance on the card. In some cases, the cards are designed

exclusively for use on the Internet, and so there is no physical card.

The use of debit cards has become widespread in many countries and has overtaken the

cheque and in some instances cash transactions by volume. Like credit cards, debit cards are

used widely for telephone and Internet purchases.

Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for

withdrawing cash and as a cheque guarantee card. Merchants can also offer "cash back"/"cash

out" facilities to customers, where a customer can withdraw cash along with their purchase.

Types of debit card

Debit card

An example of the front of a typical debit card:

Issuing bank logo

EMV chip

Hologram

Card number

Card brand logo

Expiry date

Cardholder's name

An example of the reverse side of a typical debit card:

Magnetic stripe

Signature strip

Card Security Code

Debit Card

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New Approach

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As this is an era of internet everything is getting online like shopping, business, banking etc.

In the recent trend even money is available online at any time in the form of digi-cash or

cyber cash etc. These are the recent medium of exchange, which are necessary for the

existence of e-banking. As in future the world is going to be paper less cash the existence of

e-cash will lead e-banking. In future internet is going to capture the whole world and the

private currency will become the media of exchange in e-banks replacing the government

currency. Keeping this point of view in mind and to overcome the above drawbacks of credit

cards and smart cards here we present a medium of exchange to carry digital cash wherever

man wants, which we name as “Money Pad”.

Money Pad:

Money pad is one such medium of exchange, which aims to provide secure means of

currency exchange. It’s a means that carries digital cash, as paper cash is going to extinct. “In

order to use this money pad it is necessary to have at least one e-bank in every city”.

Money pad is a biometric system similar to a credit card or a smart card just like a floppy

disk. It consists of a touch sensor and magnetic disk as its peripherals. Touch sensor is used

to record the fingerprint of the user. Magnetic disk, which has the read and writes permission,

is used to hold the authentication details of the user, bank code as well as digi-cash. The bank

code and account number of the owner of this money pad is present on the label.

Money Pad

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How to Use Money Pad :-

Visit nearby bank with e- banking facility

You must have an account with some balance.

Give necessary details along with finger print.

User is given bank-code and account number along with money pad.

Note: - The money pad consists of storage information like account number bank code (from

where he has purchased this money pad) and his finger prints.

How to work Money Pad:-

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7. Operation Of Money Pad

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New User

When a user wishes to have a Money Pad, he is supposed to visit a nearby bank which has a

e-bank facility. It is necessary for the new user to create a account with some minimum

balance. The authentication details along with his fingerprint is recorded and stored in the

data base server. The user is provided with an account number and bank code along with his

Money Pad. The Money Pad consists of stored information like account number, bank code

(from where he has purchased this money pad) and his fingerprint.

Design of the system

Process in request of money pad

8. Why Use Money Pad

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8.1 Instant clearing of funds8.2 Avoids the insecure way of carrying money8.3 Provides strong security8.4 Can be meet by a common manvoids the nuisance of renewing

8.1 Instant clearing of funds:-

The instant clearing of funds means the end of 'float', which is

the time spent waiting for a fund transfer to clear. Payments can be instantly made as man

himself carries digi-cash with him. There is no need for any intermediate party to clear the

funds.

8.2 Avoids the insecure way of carrying money:-

The present trend is full of theft and

robbery. Man is in fear while he is carrying a huge amount from place to place. The medium

of exchange that is introduced (Money Pad)eliminates this fear since man need not carry any

hard cash as it is stored in the form of digital money. In case he loses the Money Pad the

provision can be made such that the lost cash can be recurred into his own account by e-mail

facility.

8.3 Provides strong security:-

As we know everybody has a different fingerprint it is a rare

case to have two persons with same fingerprint. Taking this into consideration Money Pad

uses Biometric Technology to provide strong security.

8.4 Can be meet by a common man:-

Since credit card and smart card require the facility that

a minimum deposit should be present which is very high to be meet by a common man.

Whereas Money Pad doesn’t require any minimum high deposit but it requires a small

amount which can be meet by a common man.

8.5 Avoids the nuisance of renewing:-

Money Pad once issued is permanent, as it

doesn’t require any kind of renovation.

9. Transaction Using Money Pad

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Whenever a user wants to use the Money Pad he has to place his finger on the touch sensor

and then place it in a finger print reader. The reader will ask for bank code so that he can

enter into his e-bank, then his account number so that he can enter into his account. After this

the reader will access the fingerprint and matches with that present on the Money Pad as well

as present in the data base server. If a match occurs the reader knows that he is a authorized

user and allows for further transactions. If not then the reader comes to know that the user is

unauthorized and a provision can be made so that the dig cash present in the Money Pad is e-

mailed back to the authorized account holder using the user details present in the Money Pad.

As the Money Pad has read and write facility it is used to down load digi-cash, carry on

transaction and store the balance.

10. Technical Implementation

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The Money Pad uses the Biometric Technology as the technique with which the security is

provided. Biometric Technology is used to accurately identify and verify an individual’s

identity. This involves identifying his physiological and behavioral characteristics.

Biometrics in general refers to the study of biological characteristics. With reference to

computer security, it refers to authentication techniques using biological characteristics that

are measurable or identifiable and unique to an individual.

The accuracy of any biometric system is measured in two ways:

False Acceptance Rate – Where an impostor is accepted as a match.

False Rejection Rate – where a legitimate match is denied access.

Fingerprint verification is one such biometric system, which authenticates weather the user is

a authorized person or not. It involves the user placing his finger over a glass plate, which

resides over a high-resolution change coupled cameras. The image captured is compared to

that in the systems database and decides the user authentication. A finger print reader can be

used for this purpose.

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11.Fields Of Application

Applicable in e-banks and in any kind of e-transactions:-

The money pad device is

capable of carrying digi-cash and hence it is useful to perform any kind of e-banking or any

kind of e-transaction.

Can be used to carry out remote transactions:-

As digi-cash can be carried in

Money Pad it is useful to perform remote transaction like e-payments, dig-cash transfer etc.

Useful to carry Digital cash:-

Since in future paper cash is going to extinct, man needs

a secure means to carry digi-cash. As Money Pad provides a secure means to carry digi-cash

it will be very needful in future.

Utilization of personal data in filling order forms:-

The personal data stored in the

Money Pad can be used to fill order forms thus saving users time.

Applicable in m-commerce transactions:-

Since digi-cash is carried everywhere it

is applicable to any kind of m-commerce transactions.

Applicable in daily life:-

As it is useful in shopping, identification, telephone

services and licenses it is applicable in daily life also.

12.Future Scope

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The wallet of the future will hold less paper cash, coins and magnetic stripe cards. It will hold

instead Money Pad containing digital cash and other financial information, updated —

perhaps automatically — by a PDA with a satellite communication link.

1. Instant clearing of funds

2. Elimination of payment risk

3. Secure transactions using strong encryption

13.Conclusion

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For a digital currency system to attain widespread recognition and use the,

Following three requirements are necessary:-

1. Instant clearing of funds

2. Elimination of payment risk

3. Secure transactions using strong encryption

Since the Money Pad aims to satisfy the above conditions there is no doubt that in near future

it will be widely recommended for use.

Once the Money Pad is implemented it has a wide scope. Though at present we may use

finger print reader to access the digi-cash in the near future the device can be automated into

Mobile phone, Watches, Hand held devises, as well as WAP devices.

In future when internet is going to capture the world there is no requirement of any card or

pad just a small device which can recognize the finger print can be attached at any place

throughout the world. Thus requiring no device to carry money, just a man is required to

access digi-cash and proving “Man as Money”. At last since Thumb Impression is going to

provide a strong base for security in the future we can predict that “History Repeats”.

14.Reference

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Computers Today Magazine- October 2001 issue.

PC Quest Magazine– October 2001 issue.

Websites

www.goldmoney.com/futuremoney.html

www.nightcats.com/sales/free.html