DIGITAL WALLET

WHAT IS IN YOUR WALLET

WHAT IS A DIGITAL WALLET

A digital wallet is a software component that allows a user tomake an electronic
payment witha
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.

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 ecommerce 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 userinputted information. This information consists of your
shipping address, billing address, payment methods
(including credit card numbers, expiry dates, and security
numbers), and other information.

HOW IT WORKS???
Sender Mobile sends request to Transfer Money.
System checks available balance in Senders 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.

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 specic top-up machines
which are integrated with existing automated teller machines
b) Online by logging intobanks online portal and transferring cash
into phone.
Transferring that cash to a retailer or another digital wallet by
using NFC.

SECURE ELECTRONIC TRANSACTION

(SET) PROTOCOL
Clearing House
Merchant
Secure Line
3. Merchant software
forwards encrypted
message
2. Merchant &
4 . Clearinghouse
consumer
veries account &
computers verify
balance with issuing
each others
bank
identity SET
encrypts order &
6 .Monthly statement
payment
issued
with debit for
information
purchase
1. Consumer makes purchase selects SET
payment option

Merchant
Bank
5 . Issuing
bank credits
merchant
account

Consumers Credit
Card Issuing Bank

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.

PAYMENT METHOD

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

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

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.

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.

TICKETS / PASSES

FUTURE OF DIGITAL WALLET

Online shopping from mobile devices
Price comparison shopping
Bill Payments
Loyalty
Redemption
The electronic
wallet will be able to facilitate purchasing from mobile

and PDAs.shopping at any Internet

The electronic
wallet
willphones
allow comparison
Personal
Information
Access

access point. This will provide true price transparency and consumer
Virtual Personal Organizer

control.
The electronic wallet allow scheduling
payment intervals for
Pre-emptive Purchasing
electronic bills and invoices and receiving bill reporting from any
Device
to Device
Person
to Person
Paymentsreal time reporting of points
access
The Internet
electronic
walletpoint.
will
give consumers
accrued under loyalty schemes and their conversion entitlements.
The electronic wallet will become a single access personal nancial
portal
includingwallet
medical,
insurance,
motorcalendar,
vehicle, mortgage,
The electronic
will store
the users
contacts, tasks
superannuation
and investment
and lists on the network
allowingreporting.
this to be retrieved and updated
from
any device.
The electronic
wallet will be able to pre-empt purchasing based on
habits and actually remind the consumer to make purchases on a
regular basis.

THANK YOU!!