E - WALLET

PRESENT BY : 1. VISHAL D. JADHAV

 Content
Vision
What is a Digital Wallet?
The Need
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 were 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 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.
 THE NEED
Thick, bulky, unmanageable physical wallet.
Finding particular items is time consuming.
Evocating a lost wallet is extremely hard.
Managing multiple monetary and identification
implements is not easy. Monetary implements
include cash, debit and credit cards, and stored
value cards while identification includes national
or state identification cards and drivers licenses.
Reducing the chance of theft by having only one
item to manage.
 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 phones will allow the cell
phone to securely store both digital cash and the phone
owners 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 scannersfor could also be integrated into cell
phones and used 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 13.56MHz @

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 Senders A/C
from that particular Bank or wallet.
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 or MobileNo. Or
QR code 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 phones 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 into banks online portal and
transferring cash into phone.

Transferring that cash to a retailer or another

digital wallet by using NFC or any other
method .
 WALLET ARCHITECTURE User Profile Manager User User
Interface Interface
API

Presents a consolidated Builds on top of the

Manages information
Providesthe
interface the connection abstraction
wallet
aboutfor clients wallet
and
Instrument Manages all of the
with
to the ofan interface
client. to support
Manager
The to the concept
groups clients of the financial instrument
Wallet send and
Controller receive of a session. Manages all of the
Wallet
wallet includinghides their options contained in
messages
the complexity between
of the Responsible for
Provides a graphical
protocols
Controller that the
user names, the wallet, for
other wallets and peer
components encryption of data.
interface to the
wallet may use to Client
passwords, ship-toof and example, it may be
commerce
the wallet, components
and and services accomplish various API
offered by the
bill-to addresses, queried to determine
Instrumentprovidesby setting up
a high-level a Wallet Controllers
operations, and
potentially other user which instrument
Instances connection
interface with
to the client. a interface
invokes protocols to
profile information as classes and instances
remote Communication carry out the
well are available to
Manager. interaction between
execute a given
the digital wallet and
Protocols Protocol payment or other
the vendors and banks.
Manager operation

Communication Manager
 Features of ewallet:

Refillable
Infinite lifetime
Current balance can be stored and read
User authentication is provided
Universal access
Maximum possible cash
Cannot be duplicated
 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
 ADVANTAGES
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
Paytm
GOOGLE e-wallet
PayPal
ISIS
Venmo
Dwolla
 Paytm
Paytm, owned by One97
Communications, is a digital
payments platform that
allows you to transfer cash
into the integrated wallet
viaonlinebanking, debit
cards, and credit cards, or
even by depositing cash via
select banks and partners
 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
 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.
 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.
THANK YOU!!
any