MONEY PAD- THE FUTURE WALLET

The forthcoming centuries will not be “cashless”, but the currency will indeed be “paperless”. Thus money in the forthcoming centuries will be different from the money of the current century.

Just as everything is getting under the shadow of “e” today, the paper currency and cheques are being substituted by credit cards, smart cards and e-cash.

INTRODUCTION

The wallet of the future will hold less paper cash and coins.

It will hold instead “MONEY PAD”, containing digital cash and other financial information updated automatically by a PDA.

INTRODUCTION(contd….)

As advancements in electronic money gather pace, we need a secure transaction system.

Advancements like “Biometrics Technology” provide a form of security to the transactions.

TECHNOLOGY USED

This technology is used to develop an e-cash handling system similar to credit cards and smartcards.

This system, called as Money Pad, recognizes the finger prints of the user and decides whether the user is an authorized person or not.

TECHNOLOGY USED(contd…)

“Biometrics” means “life measurement” but the term is associated with the use of unique physiological and behavioral characteristics for uniquely recognizing an individual.

BIOMETRICS TECHNOLOGY

CLASSIFICATION OF BIOMETRICS

1. E-CASH: cash stored electronically and used to make online electronic payments.

2. HAND CASH: cash paid in the form of notes and coins.

FORMS OF MONEY

Also known as digital wallet.

Functions just like a physical wallet

Used as a method for storing various forms

of electronic money.

E-WALLET

Provides internet users with a convenient way to store and use online shopping information.

Keeps track of our billing and shipping information so that it can be entered with one click at participating sites.

Examples include Visa e-wallets, MBNA e-wallets etc.

E-WALLET(contd….)

Basics of the present system

Credit Cards

Smartcards

Debit Cards

TECHNICAL DETAILS

Payments made today in all of the world’s banking systems are handled electronically through a series of interbank computer networks.

Credit Cards and Smartcards are used to enter into these interbank computer networks.

BASICS OF THE PRESENT SYSTEM

INTERBANK COMPUTER NETWORKS

Payment devices that allow the customer to make purchases within certain guaranteed limits defined by the issuer of the card.

CREDIT CARDS

Instant clearing of funds 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 gets expired

Disadvantages Of Credit Cards:

Resembles a credit card except that it has a microchip embedded within it.

Microchip stores information and performs small calculations.

SMARTCARDS

Insecure transactions using fixed

encryption.

Risk of data loss due to chip failure.

Disadvantages of smartcards:

It is a plastic card that provides the card holder electronic access to his/her bank account.

Can be used an alternative payment method to cash when making purchases.

DEBIT CARDS

To over come the above drawbacks of credit cards and smart cards, we present a medium of exchange to carry digital cash wherever man wants, which we name as “Money Pad”.

Money pad is one such medium of exchange which aims to provide secure means of currency exchange. 

NEW APPROACH

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 .

MONEY PAD

Touch sensor is used to record the fingerprint of the user while the magnetic disk, which has the read and write permission, is used to hold the authentication details of the user, bank code as well as digital-cash.

MONEY PAD(contd…..)

NEW USER:

1.Visit a nearby bank with e-banking facility.

2.Create an account with some balance.

HOW TO USE MONEY PAD?

NEW USER(CONTD…):

3.Give necessary details along with finger prints which are stored in base server.

4.User is given bank code & account number along with money pad

The Money Pad consists of stored

information like account number, bank code and the user’s finger print.

Process of issuing money pad:

New user

Request for money

pad

Create for new

account

Money pad is issued

Database server

Enter an e-bank

Creates the details of the new user and

his finger print record

TRANSACTION USING MONEY PAD:

1.Place your finger on the touch sensor & then on the finger print reader.

2.Enter bank code & account number to enter into e-bank services.

3.If a finger print match occurs, the reader knows that he/she is an authorized user and allows for further transactions.

TRANSACTION USING MONEY PAD(CONTD…)

4.If not then the reader comes to know that the user is unauthorized and a provision can be made so that the digital-cash present in the money pad is e-mailed back to the authorized account holder using the user details present in the money pad.

Transaction using money pad:

Money pad

Finger print reader

Database server

Info . collected in passed to the server for verification

E-book

Cannot access: cash is emailed to owner’s account

Unauthorized

Authorized

Instant cleaning of funds.

Avoids the insecure ways of carrying money.

Provides strong security.

Can be used by a common man.

Avoids nuisance of renewing.

WHY USE MONEY PAD?

The accuracy of any biometric system is measured in two ways:

1.False Acceptance Rate – where an impostor is accepted as a match.

2.False Rejection Rate – where a legitimate match is denied access. 

TECHNICAL IMPLEMENTATION

Fingerprint recognition or fingerprint authentication refers to the automated method of verifying a match between two human fingerprints.

It is a biometric system, which authenticates whether the user is an authorized person or not.

Fingerprint Recognition

It involves the user placing his finger over a glass plate, which presides over a high-resolution change coupled camera.

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.

Fingerprint Recognition(contd…)

Applicable in e-banks  and in any kind of e-transaction.

Can be used to carry out remote transactions.

Useful to carry Digital cash.

FIELDS OF APPLICATION

Applicable in m-commerce transactions.

Applicable in daily life.

FIELDS OF APPLICATION(contd…)

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 transaction using strong encryption.

CONCLUSION

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.

Though at present we may use finger print reader to access the digital-cash, in the near future the device can be automated into mobile phones, watches, hand held devices as well as WAP devices.

CONCLUSION(contd…)

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