A digital wallet allows users to store payment and loyalty card information electronically rather than physically. It authenticates users and facilitates contactless payment using technologies like near field communication (NFC). Digital wallets provide advantages over physical wallets like convenience, flexibility, and safety. While systems issues, security concerns, and user experience challenges remain, major companies are developing digital wallet applications that can be used to pay at retail locations and transfer funds between individuals.

1. DIGITAL WALLET
A Presentation by N.RISHNAKUMAR

2.  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?
 Reference and Conclusion
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3. 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 we’re 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.
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4. WHAT IS A DIGITAL WALLET
 A digital wallet is a software component that allows a user to make an
electronic payment with a 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.
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5.  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 driver’s licenses.
 Reducing the chance of theft by having only one item to manage.
 Upwards of 25% of online shoppers abandon their order due to
frustration in filling in forms. (Graphic Arts Monthly, 1999) The
digital wallet combats this problem by giving users the option to
transfer their information securely and accurately. This simplified
approach to completing transactions results in better usability and
ultimately more utility for the customer.
THE NEED
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6. 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.
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7. 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 phoneswill allow the cell
phone to securely store both “digital cash” and the phone
owner’s 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 scannerscould also be integrated into cell
phones andused for quick and easy authentication.
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8. OPERATION OF NFC
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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 13.56 MHz @ 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.

9. How it works???
 Sender Mobile sends request to Transfer Money.
 System checks available balance in Sender’s 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.
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10. 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.
 Once the transaction is verified and
completed, the receipt is automatically sent
to the cell phone and stored for future
reference.
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11.  For peer-to-peer cash exchange, use the phone’s 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.
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12. 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 intobank’s online portal and
transferring cash into phone.
 Transferring that cash to a retailer or another digital
wallet by using NFC.
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13. 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, for example, it may
be queried to determine
which instrument classes
and instances are
available to execute a
given payment or other
operation
Provides the wallet with an
interface to send and
receive messages
between wallets and peer
commerce components 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.
Manages information
about clients and groups
of clients of the wallet
including their user
names, passwords, ship-
to and bill-to addresses,
and potentially other user
profile information as well
Presents a consolidated
interface for the wallet to
the client. The Wallet
Controller hides the
complexity of the other
components of the wallet,
and provides a high-level
interface to the client.
Builds on top of the
connection abstraction to
support the concept of a
session. Responsible for
encryption of data.Provides a graphical
interface to the services
offered by the Wallet
Controllers interface
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WALLET ARCHITECTURE

14. 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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15. 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
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16. 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
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17. 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.
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18. 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
 ISIS
 Venmo
 Dwolla
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19. 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
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20. 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.
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21. 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.
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22. 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.
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23. REFERENCES
 Electronic Wallets: Past, Present and Future, by Brent Clark.
 Thin is in, The future of Digital Wallets, by Christina N. White for
SapientNitro.
 Digital Wallet Technology, by Riyazuddin Khan
 SWAPEROO, A Simple Wallet Architecture for Payments,
Exchanges, Refunds, and Other Operationsby Neil Daswani, Dan
Boneh, Hector Garcia-Molina, Steven Ketchpel, Andreas Paepcke
from Stanford University.
 http://en.wikipedia.org/wiki/Digital_wallet
 Digital Wallet: Requirements and Challenges by Rajesh Krishna
Balan, NarayanRamasubbu, Giri Kumar Tayi from Singapore
Management University and SUNY at Albany.
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24. THANK YOU!! 23