E-MONEY

By – Khushi Gupta
Electronic Money
 Electronic money refers to the currency
electronically stored on electronic systems and
digital databases used to make it easier to transact
electronically. It is popularly referred to by many
names, including digital cash, digital currency, e-
money, and so on.

 Electronic money is primarily used for electronic

transactions due to the sheer convenience of this
methodology.
Concept
 Money exchanged electronically
involving microprocessors, computer
networks, internet and digital stored
values.
 Two general forms –
Card Based
Software Based
First and Current Implementations
 Smart Cards –
Generally defined as a portable data
storage device with intelligence and
provisions for identity and security.
Smart Card (Open System)
 The scheme allows the value on the
card to be used in the same manner as
the as any other payment method or
form currently in the specific place.

 Problems for wide development: Need

for terminal to process transactions,
clearing and settlement system.
 Unaccounted Electronic Money Model

Transactions closely proximate to cash ones.

Aim to provide universal cash replacement.
Without a full audit trial

 Mondex Card
 Accounted Electronic Money Model

Provide a general audit trial

Archiving Functions
Does not permit the anonymity of incorporate it into the
web browsers
Smart Card (Closed System)
 A stored value card that only can be
used for one purpose or only in one
determined environment.
 Octopus Card

 Chipknip

 Singapore
OCTOPUS CARD
 Rechargeable without contact stored
value smart card (mass transit system in
Hong Kong)
 Nowadays convenience stores,
supermarkets, parking meters, vending
machines, etc.
Off-line Electronic Money
 The Merchant does not need to interact with the
bank before accepting a users coin.
 Merchant guaranteed that the user’s e-coin will be
accepted by the bank.
 Blind signatures to achieve unlikability
between withdrawal and spend
transactions.
 Using cryptography Anonymous e-cash
was introduced by David Chaum
Advantages
 Convenience
 Privacy
 Lower Transaction fees
 New Business opportunities
 Increased efficiency
of transactions