A Seminar On E-Wallet

Submitted to the University of Rajasthan, Jaipur

In Partial fulfillment of the requirement for the degree of

Master Of Computer Applications

Submitted By : Prateek Goyal

Submitted To : Mr. Kripa Shankar Chaturvedi

Apex Institute Of Management And Science

Sec-5, V.T. Road, Mansrovar, Jaipur
{Approved by AICTE, New Delhi & Affiliated To University Of Rajastha, Jaipur}

MCA IVth Semester IInd Year

TITTLE PAGE

E-WALLET
 CERTIFICATE

This is to be certified that the seminar report entitled “E-Wallet” being submitted by
“PRATEEK GOYAL”, in partial fulfillment of requirement for the award of degree of
Master in Computer Applications is a bonafide work carried out under my supervision.

Signature

Mr. Kripa Shankar Chaturvedi

 ACKNOWLEDGEMENT

I would like to thank respected Mr. Kripa Shankar Chaturvedi for giving me such a
wonderful opportunity to expand my knowledge for my own branch and giving me guidelines
to present a seminar report. It helped me a lot to realize of what we study for.
Secondly, I would like to thank my parents who patiently helped me as i went through my
work and helped to modify and eliminate some of the irrelevant or un-necessary stuffs.
Thirdly, I would like to thank my friends who helped me to make my work more organized
and well-stacked till the end.
Next, I would thank Microsoft for developing such a wonderful tool like MS Word. It helped
my work a lot to remain error-free.
Last but clearly not the least, I would thank The Almighty for giving me strength to complete
my report on time.
 PREFACE

I have made this report file on the topic E-Wallet; I have tried my best to elucidate all the
relevant detail to the topic to be included in the report. While in the beginning I have tried to
give a general view about this topic.
My efforts and wholehearted co-corporation of each and everyone has ended on a successful
note. I express my sincere gratitude to Mr. Kripa Shankar Chaturvedi who assisted me
throughout the preparation of this topic. I thank him for providing me the reinforcement,
confidence and most importantly the track for the topic whenever I needed it.
CONTENTS
INTRODUCTON
An E-Wallet also know as a “Digital Wallet " refers to an electronic
device or online service that allows an individual to make electronic
transactions. This can include purchasing items on-line with a computer
or using a smartphone to purchase something at a store. An individual's
bank account can also be linked to the digital wallet. They might also
have their driver’s license, health card, loyalty card(s) and other ID
documents stored on the phone. The credentials can be passed to a
merchant's terminal wirelessly via Near Field Communication(NFC).
Increasingly, digital wallets are being made not just for basic financial
transactions but to also authenticate the holder's credentials. For
example, a digital wallet could verify the age of the buyer to the store
while purchasing alcohol. The system has already gained popularity in
Japan, where digital wallets are known as "wallet
mobiles". A cryptocurrency wallet is an e-wallet where private keys are
stored for cryptocurrency like bitcoin.

In other words you can say that an E-Wallet is any device or software
which allows a user to store, manipulate, and pay with various typesof
payment instructions such as electronic cash and credit cards. They
make it unnecessary to retype credit card numbers and addresses each
time a purchase is made. Most E-wallets are software programs that run
on a user’s personal computer. Soon they will be integrated into a
variety of devices, such as cellphonesand PDA’s
TECHNOLOGY
A digital wallet has both a software and information component. Secure
and fair electronic payment systems are important issue. The software
provides security and encryption for the personal information and for the
actual transaction. Typically, digital wallets are stored on the client side
and are easily self-maintained and fully compatible with most e-
commerce websites. A server-side digital wallet, also known as a thin
wallet, is one that an organization creates for and about you and
maintains on its servers. Server-side digital wallets are gaining
popularity among major retailers due to the security, efficiency, and
added utility it provides to the end-user, which increases their
satisfaction of their overall purchase. The information component is
basically a database of user-input information. This information consists
of your shipping address, billing address, payment methods (including
credit card numbers, expiry dates, and security numbers), and other
information.

Digital wallets are composed of both digital wallet devices and digital
wallet systems. There are dedicated digital wallet devices such as the
biometric wallet by Dunhill, a physical device that holds cash and cards
along with a Bluetooth mobile connection. Presently there are further
explorations for smartphones with NFC digital wallet capabilities, such
as the Samsung Galaxy series and the Google Nexus smartphones
utilizing Google’s Android operating system and Apple’ Android
operating system and Apple’s iPhone6 and iPhone 6 Plus utilizing Apple
Pay. Others include Samsung Pay, Android Pay , as well as payment
services like PayPal and Venmo.
Digital wallet systems enable the widespread use of digital
wallet transactions among various retail vendors in the form of
mobile payments systems and digital wallet applications. The
M-PESA mobile payments system and microfinancing service
has widespread use in Kenya and Tanzania, while the
MasterCard PayPass application has been adopted by a
number of vendors in the U.S. and worldwide.

Digital wallets are being used more frequently among Asian

countries as well. One in every five consumers in Asia are now
using a digital wallet, representing a twofold increase from two
years ago. A MasterCard mobile shopping survey among 8500
adults, aged 18–64 across 14 markets, showed that 45% of
users in China, 36.7% of users in India and 23.3% of users in
Singapore are the biggest adopters of digital wallets. The
survey was conducted between October and December 2015.
Further analysis showed that 48.5% of consumers in these
regions made purchases using smartphones. Indian consumers
are leading the way with 76.4% using a smartphone to make a
purchase, which is a drastic increase of 29.3% from the
previous year. This has inspired companies like Reliance and
Amazon India to come out with their own digital
wallet. Flipkart has already introduced its own digital wallet.
DEFINITION
E-wallet is a type of electronic card which is used for transactions made
online through a computer or a smartphone. Its utility is same as a credit
or debit card. An E-wallet needs to be linked with the individual’s bank
account to make payments.

DESCRIPTION
E-wallet is a type of pre-paid account in which a user can store his/her
money for any future online transaction. An E-wallet is protected with a
password. With the help of an E-wallet, one can make payments for
groceries, online purchases, and flight tickets, among others.

E-wallet has mainly two components, software and information. The

software component stores personal information and provides security
and encryption of the data. The information component is a database of
details provided by the user which includes their name, shipping
address, payment method, amount to be paid, credit or debit card
details, etc.

For setting up an E-wallet account, the user needs to install the software
on his/her device, and enter the relevant information required. After
shopping online, the E-wallet automatically fills in the user’s information
on the payment form. To activate the E-wallet, the user needs to enter
his password. Once the online payment is made, the consumer is not
required to fill the order form on any other website as the information
gets stored in the database and is updated automatically.
FEATURES OF E-WALLET
 Protected with Password.
 It’s a type of prepaid account in which a user can store his/her
money for future transactions.
 Make Shopping more efficient. There is no paper work so its
expenditure is almost eliminated
 Gives consumer the benefit of entering their information only once.
 Holds credit card numbers, electronic cash, owner identification
and contact information
 User can make payments for groceries, online purchases and flight
tickets, etc.

HOW DOES IT WORK ?

E-wallet has mainly two components, software and information. Software
component stores personal information and provides security and
encryption of the data whereas information component is a database of
details provided by the user which includes their name, shipping
address, payment method, amount to be paid, credit or debit card
details, etc.

Why Do We Need E-Wallets?

For frequent online shoppers, it becomes hassle to fill out the order
forms with the same information on them for every item you purchase.
Wouldn’t it be nice if this information could be handled automatically for
you? So, For this you need E-wallet
HOW DO I USE E-WALLET ?
For Consumer
 Download the app on your device.
 Sign-up by entering the relevant information. The user will receive
a password.
 Load money using debit/credit card or Netbanking.
 After shopping online, the e-wallet automatically fills in the user's
information on the payment form.
 Once the online payment is made, the user is not required to fill
the order form on any other website as the information gets stored
in the database and is updated automatically.

For Merchant
 Merchant downloads the app on his/her device.
 Sign-up by entering the relevant information. The user will receive
a password.
 Self-declare yourself as a merchant.
 Start accepting payments.

What do I need to start using an e-wallet?

 Bank Account.
 Smart phone.
 2G/3G/4G connection.
 A free wallet app .

Must Do Practices
 Register your mobile number at bank for regular information by
SMS for every transaction .
 Never share your PIN to anyone.
 Transact at only trusted merchants.
 While at ATM, ensure no one is looking over your shoulder.
TYPES OF ELECTRONIC WALLET

1. Client Side Electronic Wallet

2. Server Side Electronic Wallet

CLIENT SIDE ELECTRONIC WALLET

 A client side electronic wallet stores customer information on
his/her own computer
 Many of the early electronic wallet were client side wallet that
require user to download the wallet software.
 A client-side digital wallet requires minimal setup and is relatively
easy to use. Once the software is installed, the user begins by
entering all the pertinent information. The digital wallet is now set
up. At the purchase or check-out page of an e-commerce site, the
digital wallet software has the ability to automatically enter the user
information in the online form.
 By default, most digital wallets prompt when the software
recognizes a form in which it can fill out; if one chooses to fill out
the form automatically, the user will be prompted for a password.
This keeps unauthorized users away from viewing personal
information stored on a particular computer.
SERVER SIDE ELECTRONIC WALLET

 A server side electronic wallet stores a customer information on

the remote server belonging to a particular merchant or wallet
publisher.

ELECTRONIC COMMERCE MODELING

LANGUAGE (ECML)

Digital wallets are designed to be accurate when transferring data to

retail checkout forms; however, if a particular e-commerce site has a
peculiar checkout system, the digital wallet may fail to properly
recognize the form's fields. This problem has been eliminated by sites
and wallet software that use Electronic Commerce Modeling
Language (ECML) technology. Electronic Commerce Modeling
Language is a protocol that dictates how online retailers structure and
set up their checkout forms. Participating e-commerce vendors who
incorporate both digital wallet technology and ECML include: Microsoft,
Discover, IBM, Omaha Steaks and Dell Computers. Also Proposes
alternative standard that would replace electronic wallet standards with a
single standard.
SECURITY
Consumers are not required to fill out order forms on each site when
they purchase an item because the information has already been stored
and is automatically updated and entered into the order fields across
merchant sites when using a digital wallet. Consumers also benefit when
using digital wallets because their information is encrypted or protected
by a private software code; merchants benefit by receiving protection
against fraud .

Digital wallets are available to consumers free of charge, and they're

fairly easy to obtain. For example, when a consumer makes a purchase
at a merchant site that's set up to handle server-side digital wallets, they
type their name, payment and shipping information into the merchant's
own form. At the end of the purchase, the consumer is asked to sign up
for a wallet of their choice by entering a user name and password for
future purchases. Users can also acquire wallets at a wallet vendor's
site.

Although a wallet is free for consumers, vendors charge merchants for

wallets. Some wallet vendors make arrangements for merchants to pay
them a percentage of every successful purchase directed through their
wallets. In other cases, digital wallet vendors process the transactions
between cardholders and participating merchants and charge merchants
a flat fee.
HOW DOES IT WORK
So, basically you’re information is protected with a password that you
choose. Then when you stop at an Internet store the site will prompt you
to select a payment method from your wallet and to authorize it by typing
your password

Many new released E-wallets will use a new standard called the
Electronic Commerce Modeling Language (ECML) that will work with
any web security service.

ADVANTAGES AND DISADVANTAGES

ADVANTAGES
 The e-wallet makes online shopping easier because it fills In the
fields in an online order form automatically, saving you the trouble
of doing it yourself.
 This is also a great advantage for online merchants, because
customers sometimes abandon online purchases if they feel that
the order form is too confusing or frustrating.
 The e-wallet can overcome this phenomenon by automating the
completion process.
DISADVANTAGES
 If you try to use the e-wallet with an online order whose blank
fields are in a different order from those in your e-wallet, or if the
form has field that the e-wallet does not recognize, the form may
be left incomplete or be completed incorrectly.
 This would force you to erase all the fields and enter your personal
information manually, defeating the purpose of the e-wallet.

Advantages for E-Commerce Sites

Upwards of 25% of online shoppers abandon their order due to
frustration in filling in forms. The digital wallet combats this problem by
giving users the option to transfer their information securely and
accurately. This simplified approach to completing transactions results in
better usability and ultimately more utility for the customer.

Digital Wallets can also increase the security of the transaction since the
wallet typically does not pass payment card details to the website (a
unique transaction identifier or token is shared instead). Increasingly this
approach is a feature of online payment gateways , especially if the
payment gateway offers a "hosted payment page" integration approach.
 LIST OF TOP 10 E-WALLETS USED IN
INDIA

1. PayTM
PayTM is one of the largest mobile commerce platforms in India, offering
its customers a digital wallet to store money and make quick payments.
Launched in 2010, PayTM works on a semi-closed model and has a
mobile market, where a customer can load money and make payments
to merchants who have operational tie-ups with the company. Apart from
making e-commerce transactions, PayTM wallet can also be used to
make bill payments, transfer money and avail services from merchants
from travel, entertainment and retail industry.

Capitalizing on the scope and growth of India’s education market

segment, they recently partnered with premium educational institutions
in India to introduce cashless payments for fees, bills and other
expenses.

Number of installs: 100 Million (or 10 crores) on Android Play Store.

2. Amazon Pay
Amazon Pay is an online payments processing service that is owned by
Amazon. Launched in 2007 globally and in India in 2017, Amazon Pay
uses the consumer base of Amazon and focuses on giving users the
option to pay with their Amazon accounts on external merchant
websites, including apps like BigBazaar etc. You also get to Shop on
Amazon using Amazon Pay.
3. Google Pay (Formerly known as Tez)

As its part of the Google ecosystem they have scaled up their user base
really quickly, inspite of being a late entrant. With Google Pay you can
send money to friends, pay bills and buy online, recharge your phone.
Since Google Pay works with your existing bank account, which means
your money is safe with your bank. There's no need to worry about
reloading wallets and you don't need to do additional KYC - which is
required for all the other apps.

Number of installs: 100,000,000+ (100 Million or 10 crore) on Android

Play Store

4. PhonePe (now part of Flipkart)

PhonePe started in 2015 and in just 4 years it has been able to cross the
100 million download mark. From UPI payments to recharges, money
transfers to online bill payments, you can do it all on PhonePe. Its got a
very good user interface and is one of the safest and fastest online
payment experience in India.

Number of installs: 100,000,000+ (100 Million or 10 crore) on Android

Play Store
5. Mobikwik
MobiKwik is an independent mobile payment network that supposedly connects
25 million users with 50,000 retailers and more. This mobile wallet lets its users
add money using debit, credit card, net banking and even doorstep cash
collection service, which can in turn be used to recharge, pay utility bills and
shop at marketplaces. Owing to the growing need for convenience, MobiKwik
has also recently tied up with large and small time grocery, restaurants and other
offline merchants.

Another unique feature they have is their expense tracker which allows to set
budget for your expenses across all payment instruments and it uses your SMS
data to analyse and control spends.

Number of installs: 10,000,000+ (10 Million or 1 crore) on Android Play Store

6. Yono by SBI
This mobile wallet application was launched by State Bank of India to let users
transfer money to other users and bank accounts, pay bills, recharge, book for
movies, hotels, shopping as well as travel. This semi-closed prepaid wallet
offers its services in 13 languages and is available for non-SBI customers as
well. This app also allows its customers to set reminders for dues, money
transfers and view the mini-statement for the transactions carried out.

Number of installs: 10,000,000+ (10 Million or 1 crore) on Android Play Store

7. Citi MasterPass
Citi Bank India and MasterCard recently launched 'Citi MasterPass', India's first
global digital wallet for faster and secure online shopping. By using this, Citi
Bank debit and credit card customers become the first in this country to be able
to shop at more than 250,000 e-commerce merchants. It ensures faster checkout
with a single click or touch and stores all your credit, debit, prepaid, loyalty
cards and shipping details in one place.

8. ICICI Pockets
Pockets by ICICI is a digital bank that offers a mobile wallet for its customers.
It provides the convenience of using any bank account in India to fund your
mobile wallet and pay for transactions.

With Pockets, one can transfer money, recharge, book tickets, send gifts and
split expenses with friends. This wallet uses a virtual VISA card that enables its
users to transact on any website or mobile application in India and provides
exclusive deals or packages from associated brands.

Number of installs: 5,000,000+ (5 Million or 0.5 crore) on Android Play Store

9. HDFC PayZapp
PayZapp is a complete payment solution giving you the power to pay in
just One Click. PayZapp lets you recharge your mobile, DTH and data
card, pay utility bills, compare and book flight tickets, bus and hotels,
shop, buy movie tickets, music and groceries, avail great offers at
SmartBuy, and send money to anyone in your phone book.

Number of installs: 10,000,000+ (10 Million or 1 crore) on Android Play

Store

10. BHIM Axis Pay

BHIM Axis Pay is a UPI banking app that lets you transfer money
instantly to anyone using just your smartphone. Make online recharges
to your prepaid mobile and DTH set-top boxes directly from the app.

Number of installs: 1,000,000+ (1 Million or 0.1 crore) on Android Play

Store
 CONCLUSION
A wise man once said ”Credit Cards and Debit Cards which were
the rage till some years ago will soon be redundant once mobile wallet
come to be used more widely”. So now as we can see that nowadays
almost every kind of payment is possible through E-Wallets even The
UPI payments too. So, as all areas of life are becoming more mobile, we
have to take care of our digital wallet our e-wallet. Instead of double-
checking tomake sure your billfold is ensconced in a backpack, purse or
manbag,