Presentation on Topic :

E-cash
Submitted By : Arun
Bhatt
Class : BBA 2nd Year
Roll No. : 15

Submitted To:
Prof. Vinod Gup

Department of Management Studies

Contents :
Introduction
Electronic payment
Conceptual framework
E-cash payment system
E-cash security
Advantages
Limitations
conclusion

Introduction
Electronic money is paperless cash. This money is either stored on
a card itself or in an account associated with the card
The most common examples are transit cards, meal plans, and
PayPal. E-Cash can also mean any kind of electronic payment.
Electronic payment systems come in many forms including virtual
cheques, ATM cards, credit cards, and stored value cards. The
usual security features for such systems are privacy, authenticity ,
and no repudiation.

Electronic Payment
The term electronic commerce refers to any financial transaction
involving the electronic transmission of information.

The packets of information being transmitted are commonly

called electronic tokens.

the storage medium as a card since it commonly takes the form of

a wallet-sized card made of plastic or cardboard.

Conceptual Framework
There are four major components in an electronic cash system:

Issuers
Customers
Merchants or traders
Regulators.

Issuers can be banks, or non-bank institutions

customers are referred to users who spend E-Cash
Merchants and traders are vendors who receive E-Cash
regulators are defined as related authorities or state tax agencies.

For an E-Cash transaction to occur, we need to go through at least

three stages:
Account Setup: Customers will need to obtain E-Cash accounts through
certain issuers. Merchants who would like to accept E-Cash will also need
to arrange accounts from various E-Cash issuers. Issuers typically handle
accounting for customers and merchants.

Purchase: Customers purchase certain goods or services, and give the

merchants tokens which represent equivalent E-Cash. Purchase
information is usually encrypted when transmitting in the networks.

Authentication: Merchants will need to contact E-Cash issuers about the

purchase and the amount of E-Cash involved. E-Cash issuers will then
authenticate the transaction and approve the amount E-Cash involved.

E-cash payment system

For accessing the services online,
e-cash is a prime method for
secure online payments.. The
following model shows how e cash
payment system works :

This is a simple model of E-cash payment system. This

gives us the idea of how e-cash payment system works.
The model is explained properly in upcoming slides

The customer approaches his issuer(banks)

site for accessing his account. The issuer in
return issues the money in form of a token
which is generally in form of tens and
hundreds or as per specified by the customer

In second phase the customer will

endorse those tokens to the merchant
for acquiring services, for which the
customer will authenticate the payment
for the trader.

In third phase the trader will approach the

token issuer(customers bank) and after
authenticating the tokens the issuing bank
will convert the tokens into electronic fund
and the same will be transferred into traders
account

Finally after getting the payment for the

respective services the trader provides the
requisite service or product and also notifies the
customer about the approval of payment made by
customer in traders account.

E-cash security
Security is of extreme importance while handling the
online transactions. Faith in the security of the medium
of exchange, whether paper or digital, is essential for the
economy to function.
E-cash is much secure than other online payment modes because in this case
no credential such as card-passwords or anything such is involved. Its like
simply the online fund transfer from customers account to traders account.
However while accessing the customers account, the customer must keep in
mind the internet security sweep or theft. The online hacking and cracking
can be avoided by using SSL and TSL website security systems and keeping
the website link with safe Https:// protocols and proper internet security
softwares to keep aside the threats of malware, evasdrooping and other
security threats.

Advantages
We can transfer funds, purchase stocks, and offer a variety of other
services without having to handle physical cash or cheques

Electronic cash protects its user against theft With electronic cash, the
customer does not need to provide financial information

E-cash supports small payments . Other online payment system charge a

fee for every transaction no matter how much high or low it is but e-cash has
a specific limit for additional charges thats why very low payments are not
charged a fee.

Limitations
Maybe how much secure the e-cash payment system is but still no one is
safe against the online frauds. In this case the trader is referred as
fraudulent. The trader may take the amount but may not provide the
services
While making the payment, its very important that the internet connection
and power supply should be active. If the payment is in process and internet
supply fails in between it can lead to loss of information i.e amount will be
charged but it wont reach to trader and the refund takes very long time in
general the refund time is atleast 30-45 days.

E-Cash is not for everyone. Low income segments without computer and
internet access are unable to enjoy the usage of E-Cash.

Conclusion
The rise of E-Cash is inevitable, but further
improvements are needed. Tackling security,
anonymity, low income group readiness and
technology reliability issues will make E-Cash
more perfect. In countries such as India where
people were hesitant to use such methods has
shown a tremendous use of online payments and
E-cash payment system. Slowly but steadily the
growth is seen and improving it technologically
will make it more reliable and efficient for
customers to use it.