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Seminar Presentation
on
Digital Wallet
BY
LOKESH JAJOO
DEPARTMENT OF COMPUTER SCIENCE & TECHNOLOGY(6th SEM)
ACADEMY OF TECHNOLOGY
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What is Digital Wallet
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• Digital wallet is the digitized version of
traditional leather wallet, to safe keep your
money, credit cards, etc.
• A digital wallet refers to an electronic device
that allows a user to make an electronic
payment with a financial instrument (such as a
credit card or digital cash)
• It hides the low-level details of executing the
payment protocol that is used to make the
payment
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Why Digital Wallet ????
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• There are about 1.3 billion active credit and debit accounts in the
world today, there are approximately 5.3 billion active mobile
phone accounts. Payment-enabled mobile phones could quickly
outnumber traditional card based payment accounts.
• Thick, bulky, unmanageable physical wallet replaced !!
• They may also allow you to store multiple payment types
(cards, bank accounts).
• In addition to providing consumers with a new way to make
payments, mobile devices represent a new channel for
merchants and financial institutions to communicate with their
customers
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Quick Scan of its History
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How it evolved .....
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Types and components
Digital wallets are categorized into three kinds:
• Closed Wallet: by a company to a consumer for buying goods and services
exclusively from that company.
E.g. Flipkart , Oyo rooms, Ola
• Semi-Closed Wallet: Used to buy goods and services at clearly identified
merchant locations or establishments. Prepaid services are used .
Do not permit cash withdrawal or redemption
E.g. Paytm , Oxigen Wallet ,Airtel money etc .
• Open Wallet: Used for purchase of goods and services ,for funds
for cash withdrawal from ATM.
Eg. MasterCard, VISA, RuPay, etc
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 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 stores
customer’s information.
 A server-side digital wallet, is the one that an organization
creates for and about you and maintains on its servers.
 The information component is basically a database of user-
inputted information like shipping address, billing
address, payment methods ,credit card numbers, expiry dates
COMPONENTS
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User Profile Manager
Instrument Manager
Protocol
Manager
Communication Manager
Wallet
Controller
User
Interface
Client
API
User
Interface
API
Instrument
Instances
Protocols
Manages all of the
financial instrument
options contained in the
wallet.
Provides the wallet with an
interface to send and
receive messages
between wallets 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. Responsible for
encryption
Manages information
about clients and groups
of clients of the wallet
including their user
names, passwords, ship-
to and bill-to addresses,
and other user
information
Presents a interface for
the wallet to the client.
The Wallet Controller
hides the complexity of the
other components of the
wallet.
Provides a graphical
interface to the services
offered by the Wallet
Controllers interface
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WALLET ARCHITECTURE

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Technologies used in Digital
wallet(NFC), a
short-range
wireless technology
that allows you to
pay for goods by
swiping a device
Tokenization, is
the process of
substituting a
sensitive data element
with a non-sensitive
equivalent, referred to
as a token,.
The cloud is where
companies and
people store and
access information
on remote servers,
rather than on
specific devices.
A scannable
barcode which can
be read by certain
mobile applications
(by taking a photo of
the barcode) and
convey information
such as a URL etc.
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encryption is the
process of encoding
messages or
information in such a
way that only
authorized parties can
read it

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How the transaction is
carried out …..
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How does it ensures
Security …
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How its trending !!!
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The Major Players
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Benefits
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Other advantages :
• Offers
• Coupons
• Loyalty rewards
• Flexibility and
ease of use
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The other side of the Coin
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Trivia
In India :
• Paytm, started in Jan 2014 ,reached 20 million users by Dec,2014 and
100 million by the end of July ‘15.
• Airtel money (with 192.22 million subscribers as of August 2013) has
been a popular mobile payment system(Semi-Wallet)
• Immediate Payment Service (IMPS) is provided by the Reserve Bank
of India. It offers instant, 24×7, interbank electronic fund transfer service
through mobile phones.
• In a survey conducted by etailing India that how often people use digital
wallet 37% of the respondent say weekly while 26% of the respondent
preferred monthly usage of digital wallet while 17% daily
Outside India:
• 92% Kenyans use M-pesa for Mobile payment
• 54% transactions in Alipay are on mobile
• In an online Survey by Business Intelligence , 58 % found Digital wallet
insanely cool 20

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Conclusion
As all areas of life become more mobile, take care of your digital wallet
in a similar way you would your actual wallet. Instead of double-checking
to make sure your billfold is ensconced in a backpack, purse or man-
bag, rely on mobile data security to keep you protected. It’s the best way
to keep your financial information safe from invisible hacker "mitts"
reaching in to steal your ducats.
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22.
 http://www.webroot.com/in/en/home/resources/artic
les/mobile-security/mobile-payment-technology
 https://www.chasepaymentech.com/mobile_wallet_
technology.html
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References

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