E-WALLET Submitted in partial fulfillment of the requirement for the award of the degree of Bachelor of Technology In Computer Science Engineering
Under the guidance of Mr. Krishan Kant Assistant Professor
Submitted By Rohit kumar 0101332708
HMR Institute of Technology and Management
Guru Gobind Singh Indraprastha University (2008-2012)
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CERTIFICATE This is to certify that the dissertation / project report (027) entitled “E-Wallet“ done by Mr. Rohit kumar, Roll No. 0101332708 is an authentic work carried out by him at HMR Institute of Technology and Management under my guidance. The matter embodied in this report has not been submitted earlier for the award of any degree to the best of my knowledge and belief.
Date : 7th Oct. 2011 Mr. Krishan Kant Assistant Professor
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ACKNOWLEDGEMENT I would like to thank my Guide, Mr. Krishan Kant, for his timely and valuable guidance and direction for this work. It has been a great learning experience working under his supervision. His vast domain knowledge helped me to have deep insight on the subject. His suggestion and recommendations from time to time helped me immensely. He continuously encouraged me while doing the project work and throughout the preparation of the report. I would also like to thank the committee members and other staff members of the University for their Support. Further I would like to thank my friends and family member for providing unrelenting encouragement throughout the preparation of the report.
Date : 7th Oct. 2011 Rohit kumar B.Tech (CSE / 7th sem.) Enroll. No. - 0101332708
[email protected]
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ABSTRACT The main objective of e-Wallet is to make paperless money transaction easier. The main idea behind this paper is to bring in a cheaper, more versatile and much more easily usable kind of a card. Using this e-Wallet the transaction procedure can be as simple as: the customer goes to the point of sale (POS), does the purchasing and when it comes to the payment, the customer submits his e-Wallet to vender who connects it to his terminal (PC).The vender displays the billing information to the customer who finalizes it. The amount in the e-Wallet is updated accordingly. Later at periodic intervals, the vender intimates the bank (in case of credit cards) which transfers the amount from the customer’(s) account to his. The advantages of e-Wallet are its ease of use (doesn’t require a separate card reader), ease of maintenance, flexibility, safety, being the primary ones. The designing of the card is similar to any other embedded card. The designing cost of the card (e-Wallet) being as low as the price of a pizza. There are ample enhancements to this application from credit cards to televoice cards. Unlike traditional cards which are application oriented, all the applications’ software can be embedded into this e-Wallet which provides multi-functionality.
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TABLE OF CONTENTS Chapter
Page No.
Title Page………………………………………………………………………….....1 Certificate………………………………………………………………………….....2 Acknowledgement………………………………………………………………........3 Abstract……………………………………………………………………….…........4 Table of Contents……………………………………………………………………..5
1. INTRODUCTION....................................................................................................6 2. EVOLUTION………................................................................................................7 3. E-WALLET...............................................................................................................9 4. CHARACTERISTICS...............................................................................................10 5. TRANSACTION PROCEDURE...............................................................................12 6. TECHNOLOGY USED…….....................................................................................14 7. SETUP & USE……………………...........................................................................15 7.1. CLIENT-SIDE E-WALLET................................................................................15 7.2. SERVER-SIDE E-WALLET…………………………………………………...16 8. FEATURES.................................................................................................................17 9. ADVANTAGES…………………..............................................................................18 10. DISADVANTAGES……………..............................................................................19 11. FUTURE CHALLENGES.........................................................................................20 12. CONCLUSION…………………..............................................................................21 12. REFERENCES…………….......................................................................................22
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INTRODUCTION A digital wallet is a software component that allows a user to make an electronic payment with a financial instrument (such as a credit card or a digital coin), and hides the lowlevel details of executing the payment protocol that is used to make the payment. 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. A digital wallet has both a software and information component. The software provides security and encryption for the personal information and for the actual transaction. Typically, 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. A digital wallet is a software component that provides a client with instrument management and protocol management services. A digital wallet is linked into an enduser, bank, or vendor application and provides the application with instrument management and protocol management services. The digital wallets that are linked into vendor and bank applications provide these management services in the same way that end-user digital wallets do.
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EVOLUTION Digital wallets first emerged in the mid-1990s with a great deal of hype, but to a lukewarm public reception. The earliest wallets required customers to download the digital wallet vendor's (one who sells) software and store it on their desktops. This method largely inhibited customers from warming to the technology. Downloads generally were viewed with some skepticism by analysts, since they tend to limit overall distribution. Slow connection speeds exacerbated the problem, since customers tend to grow frustrated and abort downloads if they take an excessively long time to complete. In addition, any time the vendor updated its digital wallet software, customers had to download all over again. Moreover, once the software was downloaded, the digital wallet was stored on the computer's hard drive, requiring the customer to make all purchases from that computer. This lack of flexibility became increasingly problematic as more Internet shoppers roamed from one place to another and used multiple computers for surfing and shopping. Another impediment to digital wallet penetration was customer awareness. In 1999, according to the research firm Bizrate.com, only 58 percent of online purchasers were even familiar with digital wallets, while only one-fourth understood their capabilities. In addition, the sheer glut of digital wallet offerings in the late 1990s— issued by merchants, software vendors, credit card firms, banks, and other outfits—led to customer confusion, not to mention frustration stemming from the lack of compatibility between all these wallet packages. With no standardized payment system, customers were reluctant to fill up their hard drives with mutually exclusive digital wallets, nor maintain contracts with various firms. In 2000, Forrester Research released the results of a survey of online merchants. The merchants were asked why digital wallets had failed to attain prominence. Sixty-two percent of U.S. e-merchants felt there simply was too little customer demand, while 54 percent reported that digital wallets weren't a priority. Twenty-seven percent thought the market was too immature, another 27 percent couldn't see any benefits in adopting the technology, and 19 percent thought that digital wallets would result in the loss of customer relationships. 8
The Electronic Commerce Modeling Language (ECML) was conceived as a mechanism to clearly define a format for online order forms that could incorporate digital wallet technology from any vendor. To adopt ECML, merchants need only reorganize their existing online order forms so that the fields correspond to those set forth in the ECML standard. No licensing or usage fees apply, and ECML requires no additional software or hardware, according to Catalog Age. The first digital wallet to comply with ECML was IBM's Consumer Wallet 2.1, which was that company's second shot at digital wallet technology. Meanwhile, ECML standardized the format in which the various fields were stored in digital wallets. By the early 2000s, digital wallets were undergoing a mild renaissance. The models developed at that time abandoned software downloads altogether, opting instead for digital wallet systems that worked directly with ISPs and other telecommunications firms. In other words they involved server-side (or "thin"), rather than client-side ("fat"), technology.
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E-WALLET The main objective of e-Wallet is to make paperless money transaction easier. The electronic wallet (e-Wallet) is just like a leather wallet as it does the same, in terms of ecash. In today’s life where monetary value and security both, go hand in hand, it is difficult to satisfy customers using the routine cards. The main idea behind this paper is to bring in a cheaper, more versatile and much more easily usable kind of a card. Salient features of e-Wallet are :*
More than 40 years of data retention
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Firewall encrypted security logic
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Compatible with many supporting hardware.
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No separate card reader is required to access our card.
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Polarity reversal indicator is pre-built in our card.
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Reusability of our card is unlimited.
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Multiple card features are incorporated in the same card.
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External complexities are less.
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CHARACTERISTICS The digital wallets should be :Extensible :A wallet should be able to accommodate all of the users different payment instruments, and inter-operate with multiple payment protocols. For example, a digital wallet should be able to hold a users credit cards and digital coins, and be able to make payments with either of them, perhaps using SET in the case of the credit card, and by using a digital coin payment protocol in the latter case. As banks and vendors develop new financial instruments, a digital wallet should be capable of holding new financial instruments and make payments with these instruments. For instance, vendors should be able to develop electronic coupons that offer discounts on products without requiring that users install a new wallet to hold these coupons and make payments with them. Client-Driven :The interaction between the wallet and the vendor, we believe, should be driven by the client (i.e., the customer). Vendors should not be capable of invoking the clients digital wallet to do anything that the end-user may resent or consider an annoyance. For example, a vendor should not be able to automatically launch a clients digital wallet application every time the user visits a web page that offers the opportunity to buy a product. Imagine what life would be like if, simply by walking into someones store, the store owner had the right to reach into your pocket, pull out your wallet, hold it in front of you, and ask you if you wanted to buy something from him! A client-driven approach for building a digital wallet is important because software which customers consider intrusive will hinder the success of electronic commerce for all participants involved.
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Symmetric :Vendors and banks run software analogous to wallets, which manages their end of the financial operations. Since the functionality is so similar, it makes sense to re-use, whenever possible, the same infrastructure and interfaces within wallets, vendors, and banks. For example, the component that manages financial instruments (recording for instance account balances, authorized uses) can be shared across these different participants in the financial operations. If the wallet components that are re-used are extensible, then we automatically get extensibility at the bank or vendor. So, for instance, an extensible instrument manager will allow the bank or vendor to easily use new instruments as they become available. Generalized or Non –Web-Centric :Interfaces should be similar regardless of what type of device or computer that the wallet, bank, or vendor application is running on. A digital wallet running on an alternative device, such as a personal digital assistant (PDA) or a smart card, for example, has substantial functionality in common with a digital wallet built as an extension to a web browser. Thus, a digital wallet in these two environments should re-use the same instrument and protocol management interfaces.
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TRANSACTION PROCEDURE *
The A customer places order on website by pressing the 'Submit Order' or
equivalent button. *
The customer's web browser encrypts the information to be sent between the
browser & the merchant's webserver. This is done via SSL (Secure Socket Layer) encryption. *
The merchant then forwards the transaction details to their payment gateway. This
is another SSL encrypted connection to the payment server hosted by the payment gateway. *
The payment gateway forwards the transaction information to the payment
processor used by the merchant's acquiring bank. *
The payment processor forwards the response to the payment gateway.
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The payment gateway receives the response, and forwards it on to the website.
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The entire process typically takes 2–3 seconds.
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The merchant submits all their approved authorizations, in a "batch", to
their acquiring bank for settlement via their processor. *
The acquiring bank deposits the total of the approved funds in to the merchant's
nominated account. This could be an account with the acquiring bank if the merchant does their banking with the same bank, or an account with another bank..
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TECHNOLOGY USED *
An e-Wallet has both a software & information component.
*
The software provides security & encryption for the personal information & for
the actual transaction. *
The information component is basically a database of user-inputted information.
This information consists of your shipping address, billing address, payment methods (including user name, password & security questions), & other information.
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SETUP & USE Client-Side E-Wallet :* Some people prefer to access the Internet using one machine (e.g. those who stay home most of the time or access sites from their work PC only). A Client-side e-wallet is more suitable for these kinds of people. The client-side e-wallet is an appli-cation running on the client PC that holds e-coin information. * Fig. 1 shows how a vendor application server debits e-coins from the client- side e-wallet. When buying an article content a customer clicks the title of the article on the web browser (1) and then the web server sends the request to the vendor application server (2). The vendor application server sends the price of the article to the e-wallet application (3) and then the e-wallet application returns the e-coins, paying for the content to the vendor application server (4-5).
* Customers can buy article content using the client-side e-wallet at different newspaper sites without the need to log in after the e-wallet application is downloaded to their PC. Their e-coins are resident on their own PC and so access to them is never lost due to network outages to one vendor. The e-coin debiting time is slower for a client- side ewallet than the server-side e-wallet due to the extra communication be-tween vendor application server and customer PC’s e-wallet application.
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Server-Side E-Wallet :* Some people prefer to access the Internet from multiple computers (e.g. a business person who often travels around). A Server-side hosted e-wallet is suitable for these people. The server-side e- wallet is stored on the vendor server and is transferred from the broker to each vendor when required. * Fig. 2 shows how a vendor application server debits e-coins from the server -side e-wallet. When a customer clicks title of an article on his/her browser (1), the web server sends the request to the vendor application server (2), which then debits e-coins from the customer’s e-wallet (3) paying for the content. Customers can buy articles using the server-side e-wallet anywhere in the world and the e-coin debiting time is very fast on the server-side e-wallet system. However customers are required to remember e-coin IDs and password in order to log into a newspaper site when changing vendor. When a customer moves from one vendor to another, their e-wallet contents must be passed from the previous vendor site to the new one. If the first vendor site becomes unavailable, the customer temporarily does not have access to their e-wallet.
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FEATURES 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
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ADVANTAGES OF E-WALLET Ease of use :*
Withdraw or deposit value by telephone
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Pay the exact amount, no fiddling for change
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No signature required
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Immediate payment
In the future, access points may include mobile phones Accessibility and convenience :*
Cash machines and telephones give more access points to funds in bank account
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Available 24 hours / 365 days
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Cash machines and telephones cannot run out of electronic cash
Flexibility: *
Transfer value by telephone
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Pay person to person
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For low or high values
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Multi-currency capability
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No age limit, so suitable for all the family
Safety and control: *
Spend only what you have
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Read your balance
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Load value at home
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Lock your card or wallet
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Keep track of what you have spent and where
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Customer is traceable if a lost card is found
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DISADVANTAGES OF E-WALLET * Users must download the wallet form and software, after the download is complete, the wallet is installed as a plug-in or ActiveX control which is within a browser that must also be install browser. * Digital wallets and peer-to-peer (P-to-P) payment systems have failed to attract meaningful adoption for business-toconsumer (B-to-C) transactions. However, P-to-P payments have become common for consumer auctions, renewing hope that other payment-related offerings might yet succeed.
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FUTURE CHALLENGES Key Challenges :There are three key challenges that must be overcome first. 1. Mass Market Appeal :Ensuring a mass market appeal for the digital wallet is important to leverage scale economies and the network externality effect1. One way to increase the mass market appeal is to make the digital wallet usable for all day-to-day transactions. Hence it is important to support both point of sale transactions and peer-to-peer transactions between individuals. Both of these require support from financial institutions, retailers and government bodies : coordinating .Utility of the digital wallet is influenced by one’s social network. If a majority of the participants in a person’s network are not digital wallet ready, then one has to still use cash for monetary exchange these stake holders is a real challenge. It should be noted that the Korean and Japanese methods to increase mass market appeal may not work in Singapore due to differences in industrial organization and cultural preferences. 2. Stake Holder Dynamics :Any successful digital wallet deployment will need the Cooperation of multiple stake holders such as banks, retailers, regulatory bodies, and consumer. This is a challenge because satisfying the business and strategic goals of multiple stake holders is difficult. For example, bank A may choose not to be a part of a consortium where competing banks play a leading role. In addition some stake holders may have already invested in alternative technologies and may not be in a position to make further investments. Achieving buy-in from all stake holders may require the support of the government and regulatory bodies. Fortunately the Singaporean government is receptive towards digital wallet-type integration efforts. 3. Compelling user experience :The third challenge is designing a digital wallet that consumers want to use. This requires a usable interface, and support for all financial transactions that a user may want to perform. We plan to reuse some of the user interfaces and design principles developed in Japan and South Korea. However there are many important features that still need to be created. These include comprehensive backup and restore solutions, integration of a large number of monetary and identification implements, and support for peer-to-peer cash transactions. For example, this is the most common payment mode when paying for taxi rides and when paying for food and drink. As such, consumers would resist using a digital wallet if they still had to carry a conventional wallet for cash transactions.
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CONCLUSION In today’s fast moving world where people live very stress full life, this approach and innovativeness in wallet making would provide some help to people while shopping, traveling etc as it is very easy to use. It also have tracking device which would provide safety to your cards and ultimately to money. So people should buy this wallet because of the safety purpose, easy to use and good quality.
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REFERENCES *
http://en.wikipedia.org/wiki/Digital_wallet
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http://www.webopedia.com/TERM/D/digital_wallet.html
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http://www.luminous-landscape.com/reviews/digital_wallet.shtml
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http://ecommerce.hostip.info/pages/330/Digital-Wallet-Technology.html
