Presentationon

Digital WalletBY :

ANAND KUMAR PANDEYDate-

What is a Digital Wallet?The Need (Why Digital Wallet ?)Types & ComponentsArchitectureTechnologyFeaturesAdvantages and disadvantagesTriviaConclusion and Reference

What is Digital Wallet

• 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

Why Digital Wallet ????

• 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

Quick Scan of its History

How it evolved .....

Types and componentsDigital 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

Closed Wallet Semi-Closed Wallet Open WalletWhere the Money goes?

To the Company’s account To Escrow account To Bank account

CLOSED SEMI-CLOSED OPEN

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

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.

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

WALLET ARCHITECTURE

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.

 Encryption is the process of encoding

messages or information in such a

way that only authorized parties

can read it.

How the transaction is carried out …..

How does it ensures Security …

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

BenefitsOther advantages :• Offers• Coupons• Loyalty rewards• Flexibility• Easy of use

The other side of the Coin• 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.

TriviaIn India : • Paytm, started in Jan 2014 ,reached 20 million users by Dec,2014 and more than 100 million

by the end of 2016.

• 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.

• UPI (Unified Payment Interface), started in Dec 2016 ,it enables all bank account holders to send and receive money from their smartphones without the need of center.

• 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

ConclusionAs 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. Today's fast moving world where people live very stress full life ,this approach and innovativeness in wallet making would provide some help to people while shopping ,traveling etc. as it is very easy to use. It also have tracking device which would provide safety to your cards and ultimately to money. So people should use digital wallet and save their time.

https://en.wikipedia.org/wiki/Digital_wallet http://

www.webroot.com/in/en/home/resources/articles/mobile-security/mobile-payment-technology

https://www.chasepaymentech.com/mobile_wallet_technology.html

References