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A Seminar Report ON
Money Pad the Future Wallet
Submitted in partial fulfillment of the requirements for the award of the degree of

Bachelor of Technology In INFORMATION TECHNOLOGY (2010 -2011) By

Department of Information Technology BALDEV RAM MIRDHA INSTITUTE OF TECHNOLOGY

(EAST CAMPUS)

JAIPUR

SUBMITTED TO: MANOHAR PRAJAPATI (SEMINAR CORDINATOR)

SUBMITTED BY:Komal Sharma E08IT030

BALDEV RAM MIRDHA INSTITUTE OF TECHNOLOGY

JAIPUR

Department of Information Technology

CERTIFICATE
This is to certify that the Seminar titled Money Pad the Future Wallet is a bonafide work carried out by following final year student

Komal Sharma
Under our guidance towards the partial accomplishment for the award of the degree of Bachelor of Engineering (Information

Technology) by RAJASTHAN TECHNICAL UNIVERSITY during the academic Year of 2011 2012, of required standard.
SEMINAR CORDINATOR HEAD OF DEPARTMENT

[Mr. Manohar Prajapati]

[Ms. Kuntal Gaur]

ACKNOWLEDGEMENT

Achieving a milestone for any person alone is extremely difficult. However there are some motivators who come across the curvaceous path like twinkling star in the sky and make our task much easier. It becomes our humble and foremost duty to acknowledge all of them. My ethical accountability is to be extremely indebted to Ms. Kuntal Guar (HOD-IT) for his excellent guidance. I am highly obliged and thankful to my seminar guide Mr. Manohar Prajapati, who provided immense support as answer to my extreme queries that i kept firing at them during the preparation of the seminar. I would also like to thank Mr. (Any other faculty) whose support and cooperation helped in conducting the study smoothly. I owe my sincere thanks to Principal Mr. B. Srinivasan (BMIT, East campus), who provided me required guidance and facility. Last but not least, we pay our sincere thanks and gratitude to all the staff members of Baldev Ram Mirdha Institute of Technology, to provide excellent opportunity and environment throughout my preparation of the seminar. I am also thankful to all our colleagues and staff members for their co-operation and support.

PREFACE

Seminar Presentation forms an integral component of any professional course. The institute where we pursue our studies cannot provide that practical knowledge on all aspects of learning. Often the study of a subject is said to be incomplete until the student has been exposed to its practical aspects. The theoretical studies provide the pools of knowledge whereas the practical application make agile and competent. As the important part of the engineering curriculum, each student has to undergo through the Seminar Presentation. This B.Tech. course Seminar helps a student in getting acquainted with the manner in which his/her knowledge is being practically, normally different from what he/she has learnt from books. Hence, when the student switches from the process of learning to that of implementing his/her knowledge, he/she finds an abrupt change. This is exactly why this seminar session during the B.E curriculum becomes all the more important. Seminar presentation is prescribed for the student of Technical College as a part of the four year degree course of engineering by the AICTE. We are required to give the presentation on any of the current topics or technology. As an engineering student, I had opportunity to study and present the seminar on Money Pad the Future Wallet topic.

Komal Sharma (E08IT030)

Table of Contents

1. Abstract.6 2. Introduction.7 3. Keywords.10 4. Forms of Money.13 5. E-Wallet..15 6. Technical Details of Paper.17 7. Operation of Money Pad27 8. Why Use Money Pad..28 9. Transaction using Money Pad...29 10.Technical Implementation.30 11. Fields of Application..31 12. Future Scope..32 13. Conclusion..33 14. Reference34

1. Abstract

"Money in the 21st century will surely prove to be as different from the money of the current century as our money is from that of the previous century. Just as fiat money replaced speciebacked paper currencies, electronically initiated debits and credits will become the dominant payment modes, creating the potential for private money to compete with government-issued currencies." Just as everything is getting under the shadow of e today we have paper currency being replaced by electronic money or e-cash. Hardly a day goes by without some mention in the financial press of new developments in "electronic money". In the emerging field of electronic commerce, novel buzzwords like smartcards, online banking, digital cash, and electronic checks are being used to discuss money. But how are these brand-new forms of payment secure? And most importantly, which of these emerging secure electronic money technologies will survive into the next century? These are some of the tough questions to answer but heres a solution, which provides a form of security to these modes of currency exchange using the Biometrics Technology. The Money Pad introduced here uses the biometrics technology for Finger Print recognition. Money Pad is a form of credit card or smartcard, which we name so. Every time the user wants to access the Money Pad he has to make an impression of his fingers which will be scanned and matched with the one in the hard disk of data base server. If the finger print matches with the users he will be allowed to access and use the Pad otherwise the Money Pad is not accessible. Thus providing a form of security to the ever-lasting transaction currency of the future ecash.

2. Introduction

The 21st century will not be "cashless", as many now predict. However, it does seem clear that the currency of the 21st century will be "paperless". Paper currency and checks are gradually being substituted by smartcards, digital cash and instant transfers of funds. The large paper bureaucracy of banks is quickly becoming redundant, burdensome, and even out of date. The evolution in digital money is happening so fast that banks cannot adopt quickly enough and will eventually collapse like top-heavy giants, blown over by the winds of financial change. Maybe, or may not be, but one trend is already clear.

The wallet of the future will hold less paper cash, coins and magnetic stripe cards. It will hold instead Money Pad containing digital cash and other financial information, updated perhaps automatically by a PDA with a satellite communication link.

As the new technologies develop into new ways of making payment, one concern naturally arises. Will this technology protect each individual's right to privacy while providing the sound money needed for the economic health of communities? The answer is simple it depends on how the new technology is used. There is nothing inherent in the technology that makes it less protective of privacy and individual rights. Advancements like Biometrics Technology has made individual privacy even more secure. As developments in electronic money gather pace, protection of individual rights must be kept in focus. Because the record of most governments so far in these early stages of electronic commerce has been seen by many to be confrontational and not protective of individual rights, it is likely that the preservation of these rights is one reason that private currencies are likely to emerge on the Internet and to eventually play an important role in global commerce.

In order to protect the rights and properties of each individual we thought of providing a security system, which every human being can understand and feel free to use. Human beings feel secure when they have their own security arrangements to protect their rights and as well as wealth. Keeping this point of view in mind the Biometrics Technology is

8 used to develop an e-cash handling system, which is similar to well known credit cards and smartcards.

The e-cash handling system is a device that facilitates secure currency transactions. We call it as Money Pad which recognizes Finger Prints of the user and decides whether the user is a authorized person or not. Every time the user wants to access the Money Pad he has to make an impression of his finger, which will be sensed and matched with the one in the hard disk. If the finger print matches with the users he will be allowed to access and use the Pad otherwise the Money Pad is not accessible.

2.1 Description:-

1) Field of the Invention:The present invention relates to an electronic wallet management system which controls electronic wallet devices for monetary data transfer, an electronic wallet device itself, an electronic wallet management unit, a terminal station there for, as well as to a storage medium containing an electronic wallet managing program. More particularly, the present invention relates to an electronic wallet management system which deals with the loss or failure of electronic wallet devices, as well as to an electronic wallet device, an electronic wallet management unit, and a terminal station designed there for.

2) Description of the Related Art:Electronic wallet devices carry electronic money. People use them to make payment electronically, without using real money. Electronic wallet provides various advantages over cash, one of which is that payment can be made more promptly because there is no need to give or receives the change. People may, however, lose their electronic wallet devices at times. The loss of electronic wallet devices may be handled variously, depending on their device type. For example, in the case of prepaid type devices, which can be used without user authentication, there is no way for the loser to have his/her electronic wallet reissued. This means that the loser would not be able to recover the electronic money at all, unless he/she discovers the very device that is missing. In contrast to this, such electronic wallet devices that require user authentication can be reissued at their respective issuing financial institutions when they are lost. In this case, the monetary data remaining in the lost electronic wallet will eventually be carried over to the reissued device, thus allowing the owner to use it without problems. Reissuing of such an electronic wallet, however, consumes a long time. Specifically, those that require later settlement, like securities, may take a few months to be reissued. Another such example is banking cards, which manage monetary data not directly, but only through the customers' bank accounts. It takes a couple of weeks for the loser to get such a banking card reissued. What is worse is that the customer cannot spend his/her own money during the time he/she waits for the delivery of a reissued electronic wallet.

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3. Keywords

3.1 Money Pad 3.2 Digital or Electronic Cash or Digi-case 3.3 Personal Digital Assistance 3.4 Biometrics Technology 3.5 Finger Print Reader 3.6 Float 3.7 Fiat Money 3.8 Specie Backed 3.9 Legitimate

3.1 Money Pad A form of credit card or smart card similar to floppy disk, which is introduced to provide, secure e-cash transactions.

3.2 Digital or Electronic Cash or Digital Money These terms are also used

interchangeably, and they refer to any of the various methods that allow a person to purchase goods or services by transmitting a number from one computer to another. The numbers are issued by a bank and represent sums of real money. Digital cash is anonymous and reusable. Electronic money (also known as e-currency, e-money, electronic cash, electronic currency, digital money, digital cash, digital currency, cyber currency) is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems. electronic funds transfer (EFT), direct deposit, digital gold currency and virtual currency are all examples of electronic money. Also, it is a collective term for financial cryptography and technologies enabling it. While electronic money has been an interesting problem for cryptography (see for example the work of David Chaum and Markus Jakobsson), to date, the use of e-money has been relatively low-scale. One rare success has been Hong Kong's Octopus card system, which started as a transit payment system and has grown into a widely used electronic money

11 system. London Transport's Oyster card system remains essentially a contactless pre-paid travel card. Two other cities have implemented functioning electronic money systems. Very similar to Hong Kong's Octopus card, Singapore has an electronic money program for its public transportation system (commuter trains, bus, etc.), based on the same type of (FeliCa) system. The Netherlands has also implemented a nationwide electronic money system known as Chipknip for general purpose, as well as OV-Chipkaart for transit fare collection. In Belgium, a payment service company, Proton, owned by 60 Belgian banks issuing stored value cards, was developed in 1995.

3.3 Personal Digital Assistance A PDA, sometimes referred to as a palm-top computer, is smaller than a laptop computer and does not have as much computing power. Used to send email via a wireless modem, write documents in a text editor, perform calculations in a spreadsheet, store names and addresses, and perform other common business and personal tasks.

3.4 Biometrics Technology Technology used to accurately identify and verify an individuals identity.

3.5 Finger Print Reader A machine with read/write head capable of reading the information stored in the Money Pad.

3.6 Float The transaction in terms of digi-cash, which takes zero-sum gain, is called float.

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3.7 Fiat Money Authorized money.

3.8 Specie-Backed Coined money.

3.9 Legitimate Law full.

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4. Forms Of Money
4.1 Hand-Cash 4.2 E-Cash

1. Hand-Cash:The amount of money in the form of cash that a company has after it has paid all its costs. Written at the top of the assets side of a balance sheet to show the amount of money held by a company in the form of notes and coins. If someone is paid cash in hand, they are paid in notes and coins so there is no written record of the payment.

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2. E-Cash or Digital Currency:E-cash represent different types of products. This section explores the different types of e-cash product and how each function. Stored electronically, used to make online electronic payments Similar to traditional bank accounts Used with other payment technologies (digital wallets) Alleviates some security fears online credit-card transactions Allows those with no credit cards to shop online Merchants accepting digital-cash payments avoid credit-card transaction fees E-Cash Technologies, Inc. is a secure digital-cash provider that allows you to withdraw funds from your traditional bank account

E-Cash diagram

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5. E-Wallet
Digital wallet (also known as an e-wallet) allows users to make electronic commerce transactions quickly and securely. A digital wallet functions much like a physical wallet. The digital wallet was first conceived as a method of storing various forms of electronic money (e-cash), but with little popularity of such e-cash services, the digital wallet has evolved into a service that provides internet users with a convenient way to store and use online shopping information. The term digital wallet is also increasingly being used to describe mobile phones, especially smart phones, that store an individuals credentials and utilize wireless technologies such as near field communication (NFC) to carry out financial transactions

Keep track of your billing and shipping information so that it can be entered with one click at participating sites. Store e-checks, e-cash and credit-card information.

Credit-card companies offer a variety of e-wallets

Visa e-wallets MBNA e-wallet allows one-click shopping at member sites Entrypoint.com offers a personalized desktop toolbar that includes an e-wallet.

A group of e-wallet vendors have standardized technology with Electronic Commerce Modeling Language (ECML). Context-independent knowledge Name, email address, context-independent preferences When driving, I dont want to receive instant messages Context-dependent knowledge Service invocation rules Automated service identification and access

16 Map contextual attributes onto different resources (personal and public)

Privacy rules Access control rules Only my classmates can see my location My classmates can only see the building I am in but not the actual room

Obfuscation rules

E-Wallets

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6. Technical Details of Paper

6.1 Basic of the Present System 6.2 Credit Card 6.3 Smart Card 6.4 Debit Card

Basic Of the Present System:

Presently due to the usage of computers in almost all the fields the demands for the utilization of Electronic Money have been increased. Payments made today in nearly all of the deposit currencies in the world's banking systems are handled electronically through a series of interbank computer networks. Credit cards and smartcards are widely used to enter into these interbank computer networks in order to perform transactions. These are the popular medium widely existing as a recent medium of currency in the e-cash scenario. The mode of usage and the security provided by these currency mediums are as follows.

18 6.2 Credit Card:Credit cards are payment devices that allow the consumer to make purchases within certain guaranteed limits as defined by the issuer of the card. To use a credit card in most cases it is sufficient to present the merchant with the card number and the cardholder's name and expiration date of the card. These data can be conveniently transmitted over the Internet. Furthermore, credit cards process funds by electronic means. The user has to swap the card in the card reader machine then the machine asks for authentication information like secret password etc. Later the user is allowed to perform the transaction. These credit cards have several disadvantages like. Disadvantages:

Instant clearing of fund is not possible. User is always under the pressure of limits on purchase defined by the issuer of the card and also every transaction involves certain charges. Insecure transactions using fixed encryption. The card has to be renewed once it is expired.

Different types of credit card:-

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Benefits to merchants

An example of street markets accepting credit cards Credit cards are issued after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants accepting that card. When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates his/her consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a 'Card/Cardholder Not Present' (CNP) transaction. Credit Card

20 6.3 Smartcards:-

A smartcard resembles a credit card except that it has a microchip embedded within it, this allows the smartcard to store information and sometimes to even perform simple calculations. Common smartcard chips typically holds about 8,000 bytes (characters) of information, which enables the smartcard to perform a variety of functions such as identification, storing bank account information and holding digital cash. Payment information in the form of currency value is stored on this chip and can be retrieved with specially designed card readers.

Disadvantages:

Insecure transactions using fixed encryption.

Risk of data loss due to chip failure.

Smart cards can provide identification, authentication, data storage and application processing. The benefits of smart cards are directly related to the volume of information and applications that are programmed for use on a card. A single contact/contactless smart card can be programmed with multiple banking credentials, medical entitlement, drivers license/public transport entitlement, loyalty programs and club memberships to name just a few. Multifactor and proximity authentication can and has been embedded into smart cards to increase the security of all services on the card. For example, a smart card can be programmed to only allow a contactless transaction if it is also within range of another device like a uniquely paired mobile phone. This can significantly increase the security of the smart card. Governments gain a significant enhancement to the provision of publicly funded services through the increased security offered by smart cards. These savings are passed onto society through a reduction in the necessary funding or enhanced public services.

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Smart Cards IC chip diagram

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6.4 Debit card:-

A debit card (also known as a bank card) is a plastic card which provides an alternative payment method to cash when making purchases. Functionally, it can be called an electronic check, as the funds are withdrawn directly from either the bank account (often referred to as a check card), or from the remaining balance on the card. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card. The use of debit cards has become widespread in many countries and has overtaken the cheque and in some instances cash transactions by volume. Like credit cards, debit cards are used widely for telephone and Internet purchases. Debit cards can also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a cheque guarantee card. Merchants can also offer "cash back"/"cash out" facilities to customers, where a customer can withdraw cash along with their purchase.

Types of debit card Debit card

An example of the front of a typical debit card:

Issuing bank logo EMV chip Hologram Card number Card brand logo Expiry date Cardholder's name

An example of the reverse side of a typical debit card:

Magnetic stripe Signature strip Card Security Code

23 Debit Card

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New Approach

As this is an era of internet everything is getting online like shopping, business, banking etc. In the recent trend even money is available online at any time in the form of digi-cash or cyber cash etc. These are the recent medium of exchange, which are necessary for the existence of e-banking. As in future the world is going to be paper less cash the existence of e-cash will lead e-banking. In future internet is going to capture the whole world and the private currency will become the media of exchange in e-banks replacing the government currency. Keeping this point of view in mind and to overcome the above drawbacks of credit cards and smart cards here we present a medium of exchange to carry digital cash wherever man wants, which we name as Money Pad.

Money Pad: Money pad is one such medium of exchange, which aims to provide secure means of currency exchange. Its a means that carries digital cash, as paper cash is going to extinct. In order to use this money pad it is necessary to have at least one e-bank in every city. Money pad is a biometric system similar to a credit card or a smart card just like a floppy disk. It consists of a touch sensor and magnetic disk as its peripherals. Touch sensor is used to record the fingerprint of the user. Magnetic disk, which has the read and writes permission, is used to hold the authentication details of the user, bank code as well as digi-cash. The bank code and account number of the owner of this money pad is present on the label.

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Money Pad

How to Use Money Pad :

Visit nearby bank with e- banking facility You must have an account with some balance. Give necessary details along with finger print. User is given bank-code and account number along with money pad.

Note: - The money pad consists of storage information like account number bank code (from where he has purchased this money pad) and his finger prints.

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How to work Money Pad:-

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7. Operation Of Money Pad

New User
When a user wishes to have a Money Pad, he is supposed to visit a nearby bank which has a e-bank facility. It is necessary for the new user to create a account with some minimum balance. The authentication details along with his fingerprint is recorded and stored in the data base server. The user is provided with an account number and bank code along with his Money Pad. The Money Pad consists of stored information like account number, bank code (from where he has purchased this money pad) and his fingerprint.

Design of the system

Process in request of money pad

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8. Why Use Money Pad

8.1 Instant clearing of funds 8.2 Avoids the insecure way of carrying money 8.3 Provides strong security 8.4 Can be meet by a common man voids the nuisance of renewing 8.1 Instant clearing of funds:The instant clearing of funds means the end of 'float', which is the time spent waiting for a fund transfer to clear. Payments can be instantly made as man himself carries digi-cash with him. There is no need for any intermediate party to clear the funds. 8.2 :The present trend is full of theft and robbery. Man is in fear while he is carrying a huge amount from place to place. The medium of exchange that is introduced (Money Pad)eliminates this fear since man need not carry any hard cash as it is stored in the form of digital money. In case he loses the Money Pad the provision can be made such that the lost cash can be recurred into his own account by e-mail facility.

8.3 Provides strong security:As we know everybody has a different fingerprint it is a rare case to have two persons with same fingerprint. Taking this into consideration Money Pad uses Biometric Technology to provide strong security.

8.4

:Since credit card and smart card require the facility that

a minimum deposit should be present which is very high to be meet by a common man. Whereas Money Pad doesnt require any minimum high deposit but it requires a small amount which can be meet by a common man.

8.5 require any kind of renovation.

:Money Pad once issued is permanent, as it doesnt

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9. Transaction Using Money Pad

Whenever a user wants to use the Money Pad he has to place his finger on the touch sensor and then place it in a finger print reader. The reader will ask for bank code so that he can enter into his e-bank, then his account number so that he can enter into his account. After this the reader will access the fingerprint and matches with that present on the Money Pad as well as present in the data base server. If a match occurs the reader knows that he is a authorized user and allows for further transactions. If not then the reader comes to know that the user is unauthorized and a provision can be made so that the dig cash present in the Money Pad is emailed back to the authorized account holder using the user details present in the Money Pad. As the Money Pad has read and write facility it is used to down load digi-cash, carry on transaction and store the balance.

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10. Technical Implementation

The Money Pad uses the Biometric Technology as the technique with which the security is provided. Biometric Technology is used to accurately identify and verify an individuals identity. This involves identifying his physiological and behavioral characteristics. Biometrics in general refers to the study of biological characteristics. With reference to computer security, it refers to authentication techniques using biological characteristics that are measurable or identifiable and unique to an individual. The accuracy of any biometric system is measured in two ways: False Acceptance Rate Where an impostor is accepted as a match. False Rejection Rate where a legitimate match is denied access.

Fingerprint verification is one such biometric system, which authenticates weather the user is a authorized person or not. It involves the user placing his finger over a glass plate, which resides over a high-resolution change coupled cameras. The image captured is compared to that in the systems database and decides the user authentication. A finger print reader can be used for this purpose.

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11.Fields Of Application

Applicable in e-banks and in any kind of e-transactions:The money pad device is

capable of carrying digi-cash and hence it is useful to perform any kind of e-banking or any kind of e-transaction.

Can be used to carry out remote transactions:As digi-cash can be carried in

Money Pad it is useful to perform remote transaction like e-payments, dig-cash transfer etc.

Useful to carry Digital cash:Since in future paper cash is going to extinct, man needs

a secure means to carry digi-cash. As Money Pad provides a secure means to carry digi-cash it will be very needful in future.

Utilization of personal data in filling order forms:The personal data stored in the

Money Pad can be used to fill order forms thus saving users time.

Applicable in m-commerce transactions:Since digi-cash is carried everywhere it

is applicable to any kind of m-commerce transactions.

Applicable in daily life:As it is useful in shopping, identification, telephone

services and licenses it is applicable in daily life also.

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12.Future Scope

The wallet of the future will hold less paper cash, coins and magnetic stripe cards. It will hold instead Money Pad containing digital cash and other financial information, updated perhaps automatically by a PDA with a satellite communication link.

1. Instant clearing of funds 2. Elimination of payment risk 3. Secure transactions using strong encryption

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13.Conclusion

For a digital currency system to attain widespread recognition and use the, Following three requirements are necessary:-

1. Instant clearing of funds 2. Elimination of payment risk 3. Secure transactions using strong encryption

Since the Money Pad aims to satisfy the above conditions there is no doubt that in near future it will be widely recommended for use. Once the Money Pad is implemented it has a wide scope. Though at present we may use finger print reader to access the digi-cash in the near future the device can be automated into Mobile phone, Watches, Hand held devises, as well as WAP devices. In future when internet is going to capture the world there is no requirement of any card or pad just a small device which can recognize the finger print can be attached at any place throughout the world. Thus requiring no device to carry money, just a man is required to access digi-cash and proving Man as Money. At last since Thumb Impression is going to provide a strong base for security in the future we can predict that History Repeats.

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14.Reference

Computers Today Magazine- October 2001 issue. PC Quest Magazine October 2001 issue.

Websites

www.goldmoney.com/futuremoney.html www.nightcats.com/sales/free.html