This document discusses different forms of electronic payment including e-cash, e-wallets, smart cards, and debit cards. E-cash uses cryptographic algorithms to prevent double spending and serial numbers to trace transactions. E-wallets allow online shopping by storing credit card and delivery information. Smart cards have applications for travel tickets, medical records, loyalty programs and more. Debit cards differ from credit cards in that they do not provide credit and have no interest charges.

3. E- CASH
SMART CARDS
E- WALLETS
DEBIT CARDS

4. E-Cash

5. Electronic Cash Security
Complex cryptographic algorithms prevent double
spending.
Serial numbers can allow tracing to prevent money
laundering.

6. E-Cash Processing
Merchant
2) Bank sends e-cash bits to consumer
(after charging that amount plus fee)
5
4
Bank
1
Consumer
3
2
1) Consumer buys e-cash from Bank
3) Consumer sends e-cash to merchant
4) Merchant checks with Bank that ecash is valid (check for forgery or
fraud)
5) Bank verifies that e-cash is valid
6) Parties complete transaction

7. Advantages and Disadvantages of
Electronic Cash

Advantages
 More efficient, eventually meaning lower
prices.
 Lower transaction costs.
 Anybody can use it, unlike credit cards, and
does not require special authorization.

Disadvantages
 Susceptible to forgery.

8. E-Wallet

9. Procedure for using an e-wallet
1. Decide on an online site where you would like to
shop.
2.Download a wallet from the merchant’s website.
3.Fill out personal information such as your credit card
number, name, address and phone number, and
where merchandise should be shipped.
4.When you are ready to buy, click on the wallet
button, the buying process is fully executed.

10. Smart Cards

11. Smart card Processing

12. Smart Card Applications
 Ticketless travel
 Seoul bus system:
 Authentication, ID
 Medical records
 Ecash
 Store loyalty programs
 Personal profiles
 Government
 Licenses
 Mall parking

13. Advantages
1.Atomic, debt-free transactions.
2.Feasible for very small transactions
(information commerce).
3.Anonymous.
4.Security of physical storage.
5.currency-neutral.

14. Disadvantages:
1.Low maximum transaction limit.
2.High Infrastructure costs .
3.Not (yet) widely used.

15. Debit Card

16. Credit card VS Debit card
 You
can obtain credit in credit card
but not in debit card.
 Credit
card charges interest for
using the bank's money.
 debit card is free from this problem.