digital wallet

28
DIGITAL WALLET A Presentation by Sohil Gupta

Upload: sohil-gupta

Post on 28-Jan-2015

8.851 views

Category:

Documents


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Digital wallet

DIGITAL WALLETA Presentation by Sohil Gupta

Page 2: Digital wallet

2

What is Digital Wallet?

Need

Components

Technology

Payment Model

Inner details

Implementation

Challenges

How it is being used right now?

The Future of Digital Wallet

Page 3: Digital wallet

3

WHAT IS DIGITAL WALLETA 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 store multiple monetary and identification implements. Monetary implements include cash, debit and credit cards, and stored value cards while identification includes national or state identification cards and driver’s licenses.

Page 4: Digital wallet

4

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.

THE NEED

Page 5: Digital wallet

5

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.

Page 6: Digital wallet

6

TECHNOLOGYSecure Communication Medium• New NFC (Near Field Communication) chips are already

appearing in smartphones 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 phones will 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 scanners could also be integrated into cell phones and used for quick and easy authentication.

Page 7: Digital wallet

7

PAYMENT MODELS For point-of-sale transactions:-

o A NFC-compatible “reader pad” can be deployed in retail stores.

o When payment is required, consumers place their cell phone on/near the pad and all their valid payment options appear on a display.

o They can then select the payment method they plan to use (cash, specific credit card, etc.) for the transaction.

o The pad transmits the transaction request to the appropriate financial institutions using existing banking protocols provided by NETS, Visa, Amex, and MasterCard.

o The consumer can provide any necessary signatures using a digital signature pad located next to the reader pad.

o Once the transaction is verified and completed, the receipt is automatically sent to the cell phone and stored for future reference.

Page 8: Digital wallet

8

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.

Page 9: Digital wallet

9

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 into bank’s online portal and transferring cash into phone.

Transferring that cash to a retailer or another digital wallet by using NFC.

Page 10: Digital wallet

10

User Profile Manager

Instrument Manager

Protocol Manager

Communication Manager

WalletController

UserInterface

ClientAPI

UserInterface

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

WALLET ARCHITECTURE

Page 11: Digital wallet

11

SECURE ELECTRONIC TRANSACTION (SET) PROTOCOL

Consumer’s Credit Card Issuing Bank1. Consumer makes purchase selects SET

payment option

Merchant

2. Merchant & consumer computers verify each other’s identity SET encrypts order & payment information

Merchant Bank

6 .Monthly statement issued with debit for purchase

3. Merchant software forwards encrypted message

4 . Clearinghouse verifies account & balance with issuing bank

5 . Issuing bank credits merchant account

Secure Line

Clearing House

Page 12: Digital wallet

12

WALLET INTERACTION MODEL

Open Session

Instrument Class Negotiation

Protocol Negotiation

Protocol Selection

Instrument Selection

Transaction Execution

Close Session

Open Session

Instrument ClassNegotiation

ProtocolNegotiation

ProtocolSelection

InstrumentSelection

CloseSession

TransactionExecution

Page 13: Digital wallet

13

INSTRUMENT CLASS NEGOTIATION

User Profile Manager

Instrument Manager

Protocol Manager

Communication Manager

WalletController

UI Customer Profile Manager

Instrument Manager

Protocol Manager

Communication Manager

VendorController

UI

User Wallet Vendor Wallet

Page 14: Digital wallet

14

TRANSACTION EXECUTION

User Profile Manager

Instrument Manager

Protocol Manager

Communication Manager

WalletController

UI Customer Profile Manager

Instrument Manager

Protocol Manager

Communication Manager

VendorController

UI

User Wallet Vendor Wallet

Page 15: Digital wallet

TRANSACTION EXECUTION

15

Page 16: Digital wallet

16

A DIGITAL WALLET MENU The Cards module is used for storing personal

card information, such as payment card (credit, debit, etc.), loyalty.

The card details consist of card info (name, number, etc.), account info (billing address, etc.) and shipping info (shipping address, email, phone number, etc.).

From the wallet, the user can fetch the required information (stored in the ECML: Electronic Commerce Modeling Language) format via the WAP browser and easily fill in the required fields.

The Personal notes function is a notebook where the user can store private information.

From the Settings, the user can switch the wallet code request on and off and change the wallet code when necessary.

An existing Internet standard, already commonly used in Internet

shopping, aiming to produce common methods for transferring transaction information from the

client wallet to the server application.

Page 17: Digital wallet

IMPLEMENTATION Reuse the back-end infrastructure that routes credit card and debit card

information between retailers and financial institutions. Also retain the existing ATM networks and online banking solutions.

Provide retailers with a single NFC-enabled point-of-sale device that replaces the current separate machines for credit cards and debit card purchases.

Extend the physical ATM machines to also provide cash top up/removal services for digital wallets. In addition, consider methods to extend existing online banking solutions to support the digital wallet.

17

Page 18: Digital wallet

18

CHALLENGESMass Market Appeal

Ensuring a mass market appeal for the digital wallet is important to leverage scale economies and the network externality effect. One way to increase the mass market appeal is to make the digital wallet usable for all day-to-day transactions.

Stake Holder DynamicsSatisfying the business and strategic goals of multiple stake holders such as banks, retailers, regulatory bodies, is difficult.

Compelling user experienceA user-friendly wallet interface, easy to use and intuitive is difficult to produce.

Page 19: Digital wallet

19

WHAT IS IN YOUR WALLET

Page 20: Digital wallet

20

PAYMENT METHOD

Page 21: Digital wallet

21

FINANCIAL MANAGEMENT

Page 22: Digital wallet

22

COUPONS / CHECK-IN INCENTIVES

Page 23: Digital wallet

23

COMPARISON SHOPPING

Page 24: Digital wallet

24

TICKETS / PASSES

Page 25: Digital wallet

25

THIS IS YOUR WALLET

Page 26: Digital wallet

26

Online shopping from mobile devices

Price comparison shopping

Bill Payments

Loyalty Redemption

Personal Information Access

Virtual Personal Organizer

Pre-emptive Purchasing

Device to Device Person to Person Payments

The electronic wallet will be able to facilitate purchasing from mobile phones and PDA’s.

FUTURE OF DIGITAL WALLET

The electronic wallet will allow comparison shopping at any Internet access point. This will provide true price transparency and consumer

control.The electronic wallet allow scheduling payment intervals for electronic bills and invoices and receiving bill reporting from any Internet access point.The electronic wallet will give consumers real time reporting of points

accrued under loyalty schemes and their conversion entitlements.The electronic wallet will become a single access personal financial portal including medical, insurance, motor vehicle, mortgage, superannuation and investment reporting.The electronic wallet will store the user’s calendar, contacts, tasks and lists on the network allowing 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.

Page 27: Digital wallet

27

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 Operations by 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, Narayan Ramasubbu, Giri Kumar Tayi from Singapore Management University and SUNY at Albany.

Page 28: Digital wallet

28THANK YOU!!