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E Wallet Report
E Wallet Report
INTRODUCTION
EVOLUTION
Digital wallets first emerged in the mid-1990s with a great deal of hype, but to a
lukewarm public reception. The earliest wallets required customers to download the digital
wallet vendor's (one who sells) software and store it on their desktops. This method largely
inhibited customers from warming to the technology. Downloads generally were viewed with
some skepticism by analysts, since they tend to limit overall distribution. Slow connection
speeds exacerbated the problem, since customers tend to grow frustrated and abort downloads
if they take an excessively long time to complete. In addition, any time the vendor updated its
digital wallet software, customers had to download all over again. Moreover, once the
software was downloaded, the digital wallet was stored on the computer's hard drive,
requiring the customer to make all purchases from that computer. This lack of flexibility
became increasingly problematic as more Internet shoppers roamed from one place to another
and used multiple computers for surfing and shopping.
Another impediment to digital wallet penetration was customer awareness.
In 1999, according to the research firm Bizrate.com, only 58 percent of online
purchasers were even familiar with digital wallets, while only one-fourth understood their
capabilities. In addition, the sheer glut of digital wallet offerings in the late 1990s—issued by
merchants, software vendors, credit card firms, banks, and other outfits—led to customer
confusion, not to mention frustration stemming from the lack of compatibility between all
these wallet packages. With no standardized payment system, customers were reluctant to fill
up their hard drives with mutually exclusive digital wallets, nor maintain contracts with
various firms.
In 2000, Forrester Research released the results of a survey of online merchants. The
merchants were asked why digital wallets had failed to attain prominence. Sixty-two percent
of U.S. e-merchants felt there simply was too little customer demand, while 54 percent
reported that digital wallets weren't a priority. Twenty-seven percent thought the market was
too immature, another 27 percent couldn't see any benefits in adopting the technology, and 19
percent thought that digital wallets would result in the loss of customer relationships.
E-WALLET
The main objective of e-Wallet is to make paperless money transaction easier. The
electronic wallet (e-Wallet) is just like a leather wallet as it does the same, in terms of e-cash.
In today’s life where monetary value and security both, go hand in hand, it is difficult to
satisfy customers using the routine cards. The main idea behind this paper is to bring in a
cheaper, more versatile and much more easily usable kind of a card.
CHARACTERISTICS
The digital wallets should be :-
Extensible :-
A wallet should be able to accommodate all of the users different payment
instruments, and inter-operate with multiple payment protocols. For example, a digital
wallet should be able to hold a users credit cards and digital coins, and be able to make
payments with either of them, perhaps using SET in the case of the credit card, and by
using a digital coin payment protocol in the latter case. As banks and vendors develop
new financial instruments, a digital wallet should be capable of holding new financial
instruments and make payments with these instruments. For instance, vendors should be
able to develop electronic coupons that offer discounts on products without requiring that
users install a new wallet to hold these coupons and make payments with them.
Client-Driven :-
The interaction between the wallet and the vendor, we believe, should be driven by
the client (i.e., the customer). Vendors should not be capable of invoking the clients
digital wallet to do anything that the end-user may resent or consider an annoyance. For
example, a vendor should not be able to automatically launch a clients digital wallet
application every time the user visits a web page that offers the opportunity to buy a
product. Imagine what life would be like if, simply by walking into someones store, the
store owner had the right to reach into your pocket, pull out your wallet, hold it in front of
you, and ask you if you wanted to buy something from him! A client-driven approach for
building a digital wallet is important because software which customers consider intrusive
will hinder the success of electronic commerce for all participants involved.
Symmetric :-
Vendors and banks run software analogous to wallets, which manages their end of
the financial operations. Since the functionality is so similar, it makes sense to re-use,
whenever possible, the same infrastructure and interfaces within wallets, vendors, and
banks. For example, the component that manages financial instruments (recording for
instance account balances, authorized uses) can be shared across these different
participants in the financial operations. If the wallet components that are re-used are
extensible, then we automatically get extensibility at the bank or vendor. So, for instance,
an extensible instrument manager will allow the bank or vendor to easily use new
instruments as they become available.
TRANSACTION PROCEDURE
* The customer's web browser encrypts the information to be sent between the
browser & the merchant's webserver. This is done via SSL (Secure Socket Layer)
encryption.
* The merchant then forwards the transaction details to their payment gateway. This
is another SSL encrypted connection to the payment server hosted by the payment
gateway.
* The payment gateway receives the response, and forwards it on to the website.
* The acquiring bank deposits the total of the approved funds in to the merchant's
nominated account. This could be an account with the acquiring bank if the merchant does
their banking with the same bank, or an account with another bank..
TECHNOLOGY USED
* The software provides security & encryption for the personal information & for the
actual transaction.
Client-Side E-Wallet :-
* Some people prefer to access the Internet using one machine (e.g. those who stay
home most of the time or access sites from their work PC only). A Client-side e-wallet is
more suitable for these kinds of people. The client-side e-wallet is an appli-cation running
on the client PC that holds e-coin information.
* Fig. 1 shows how a vendor application server debits e-coins from the client- side e-
wallet. When buying an article content a customer clicks the title of the article on the web
browser (1) and then the web server sends the request to the vendor application server (2).
The vendor application server sends the price of the article to the e-wallet application (3)
and then the e-wallet application returns the e-coins, paying for the content to the vendor
application server (4-5).
Server-Side E-Wallet :-
* Some people prefer to access the Internet from multiple computers (e.g. a business
person who often travels around). A Server-side hosted e-wallet is suitable for these
people. The server-side e- wallet is stored on the vendor server and is transferred from the
broker to each vendor when required.
* Fig. 2 shows how a vendor application server debits e-coins from the server -side
e-wallet. When a customer clicks title of an article on his/her browser (1), the web server
sends the request to the vendor application server (2), which then debits e-coins from the
customer’s e-wallet (3) paying for the content. Customers can buy articles using the
server-side e-wallet anywhere in the world and the e-coin debiting time is very fast on the
server-side e-wallet system. However customers are required to remember e-coin IDs and
password in order to log into a newspaper site when changing vendor. When a customer
moves from one vendor to another, their e-wallet contents must be passed from the
previous vendor site to the new one. If the first vendor site becomes unavailable, the
customer temporarily does not have access to their e-wallet.
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
ADVANTAGES OF E-WALLET
Ease of use :-
* Withdraw or deposit value by telephone
* Pay the exact amount, no fiddling for change
* No signature required
* Immediate payment
In the future, access points may include mobile phones
Flexibility:
* Transfer value by telephone
* Pay person to person
* For low or high values
* Multi-currency capability
DISADVANTAGES OF E-WALLET
* Users must download the wallet form and software, after the download is
complete, the wallet is installed as a plug-in or ActiveX control which is within a browser
that must also be install browser.
* Digital wallets and peer-to-peer (P-to-P) payment systems have failed to attract
meaningful adoption for business-toconsumer (B-to-C) transactions. However, P-to-P
payments have become common for consumer auctions, renewing hope that other
payment-related offerings might yet succeed.
FUTURE CHALLENGES
Key Challenges :-
There are three key challenges that must be overcome first.
CONCLUSION
In 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 buy this wallet because of
the safety purpose, easy to use and good quality.
* http://en.wikipedia.org/wiki/Digital_wallet
* http://www.webopedia.com/TERM/D/digital_wallet.html
* http://www.luminous-landscape.com/reviews/digital_wallet.shtml
* http://ecommerce.hostip.info/pages/330/Digital-Wallet-Technology.html
ABSTRACT
The main objective of e-Wallet is to make paperless money transaction easier. The
main idea behind this paper is to bring in a cheaper, more versatile and much more easily
usable kind of a card. Using this e-Wallet the transaction procedure can be as simple as:
the customer goes to the point of sale (POS), does the purchasing and when it comes to the
payment, the customer submits his e-Wallet to vender who connects it to his terminal
(PC).The vender displays the billing information to the customer who finalizes it. The
amount in the e-Wallet is updated accordingly. Later at periodic intervals, the vender
intimates the bank (in case of credit cards) which transfers the amount from the
customer’(s) account to his.
The advantages of e-Wallet are its ease of use (doesn’t require a separate card
reader), ease of maintenance, flexibility, safety, being the primary ones. The designing of
the card is similar to any other embedded card. The designing cost of the card (e-Wallet)
being as low as the price of a pizza. There are ample enhancements to this application
from credit cards to televoice cards. Unlike traditional cards which are application
oriented, all the applications’ software can be embedded into this e-Wallet which provides
multi-functionality.
CONTENTS
1. INTRODUCTION 1
2. EVOLUTION 2
3. E-WALLET 4
4. CHARACTERISTICS 5
5. TRANSACTION PROCEDURE 7
6. TECHNOLOGY USED 9
7. SETUP&USE 10
8. FEATURES OF E-WALLET 12
9. ADVANTAGES OF E-WALLET 13
12. CONCLUSION 17
13. REFERENCES 18