7

CHAPTER 1

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large paper bureaucracy of banks is quickly becoming redundant, burdensome and even out
of date.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.

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

Fig.1.1 money pad

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CHAPTER 2

KEYWORDS

2.1 MONEY PAD

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

2.2 Digital or Electronic Cash

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.

2.3 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
 10

modem, write documents in a text editor, perform calculations in a spreadsheet, store names
and addresses, and perform other common business and personal tasks.

2.4 Biometrics Technology

Technology used to accurately identify and verify an individuals identity.

2.5 Finger Print Reader

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

2.6 Float

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

2.7 Fiat Money

Authorized money.

2.8 Specie-Backed

Coined money.
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2.9 Legitimate

Law full.
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CHAPTER 3

FORMS OF MONEY

3.1 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.

Fig.3.1 Hand Cash

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3.2 E-CASH

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 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.
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CHAPTER 4

E-WALLET

Digital wallet allows user to make electronics commerce transactions quickly and
securely.
A digital cash wallet functions much like a physical wallet. The digital wallet was first
conceived as a method of storing various forms of electronic money, but with little
popularity of such e-cash services, the digital wallet has evolved into a service that
provide 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 stores an individuals credentials and utilize wireless
technologies such as near field communication 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-cash and credit card information.

4.1 CREDIT CARD COMPANIES OFFER A VARITY OF E-WALLETS

Visa e-wallets
MBNA e-wallets 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

Context independent knowledge

Name, E-mail address, context independent preferences
 15

Context dependent knowledge

When driving I dont want to receive instant message

Service invocation rules

Automated services identification and access
Map contextual attributes onto different resources

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

Fig.4.1 money pad

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CHAPTER 5

TECHNICAL DETAILS OF PAPER

5.1 Basic of the Present System

Presently due to the usage of computers in almost all the fields the demand 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.

Fig.5.1 Interbank Computer Networks

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Fig.5.2 Present Banking system

5.2 CREDIT CARDS

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 toper form the transaction. These credit cards have
several disadvantages.

Disadvantage

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
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Fig.5.3 Various Credit Cards

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Benefits to merchants

Fig.5.4An 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 card holder 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.

Fig.5.5Credit cards
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5.3SMARTCARDS

A smartcard resembles a credit card except that it has a microchip embedded within
it, which 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 a
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.

Fig.5.6 Smart Card Application

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Fig.5.7 Smart Cards IC Chip Diagram.

5.4 DEBIT CARDS

A debit card (also known as a bank card or check card) is a plastic card that
provides the cardholder electronic access to his or her bank account(s) at a financial
institution. Some cards have a stored value with which a payment is made, while most
relay a message to the cardholder's bank to withdraw funds from a designated account
in favor of the payee's designated bank account. The card can be used as an
alternative payment method to cash when making purchases. In some cases, the
primary account number is assigned exclusively for use on the Internet and there is no
physical card.

The use of debit cards has become widespread in many countries and has
overtaken cherub and in some instances cash transaction by volume Like Credit cards,
debit cards are used widely for telephone and internet purchases.

5.4.1 TYPES OF DEBIT CARDS

An Example of the front of a typical debit card:

Issuing bank logo
EMV chip
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Hologram
Card number
Card brand logo
Expiry date
Cardholders name

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

Magnetic stripe
Signature strip
Card security code
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Fig.5.8 Debit Card

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
digital-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 write permission is used to
hold the authentication details of the user, bank code as well as digital-cash. The bank code
and account number of the owner of this money pad is present on the label.
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5.4.2 How To Work Money Pad

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CHAPTER 6

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 a account number and bank 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 System
Process in request of money pad
 26

New user
Enter an e-book

Request for money pad

Creates the details of the new user and his fin

Create for new account

Database server
Money pad is issued
Fig.6.1 Process of issuing money pad

CHAPTER 7

WHY WE USE MONEY PAD?

7.1Instant 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 digital
-cash with him. There is no need for any intermediate party to clear the funds.

7.2 Avoids the insecure way of carrying money

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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.

7.3Provides 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.

7.4Can be meet by a common man

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.

7.5 Avoids the nuisance of renewing

Money Pad once issued is permanent, as it doesnt require any kind frequent.
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CHAPTER 8

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 an
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 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. As the Money Pad has read and write facility it is used to down load digital-
cash, carry on transaction and store the balance.
 29

Info collected in passed to the server for verification

Finger print reader Database server

Unauthorized

Money pad E-book Cannot access cash is emailed to owners account

Authorized
Fig.8.1 Transaction of money pad

CHAPTER 9

TECHNICAL IMPLEMENTATION

The Money Pad uses the Biometric Technology as the technique with which the
security is provided. Biometric Technology are 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.
 30

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.

Fig.9.1 Finger print reader

CHAPTER 10

FIELDS OF APPLICATION

10.1Applicable in e-banks and in any kind of e-transactions

The money pad device is capable of carrying digital-cash and hence it is useful to
Perform any kind of e-banking or any kind of e-transaction.

10.2 Can be used to carry out remote transactions

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As digital-cash can be carried in Money Pad it is useful to perform remote

Transaction like e-payments, dig-cash transfer etc.

10.3 Useful to carry Digital cash

Since in future paper cash is going to extinct, man needs a secure means to
Carry digital-cash. As Money Pad provides a secure means to carry digital-cash it will
be very needful in future.

10.4 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.

10.5Applicable in m-commerce transactions

Since digital-cash is carried everywhere it is applicable to any kind of commerce

Transactions.

10.6Applicable 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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CHAPTER 11

FUTURE SCOPE

The wallet of future will hold paperless cash, coins and magnetic strip cards. It will
hold Instead money pad containing digital cash and other financial information updated
perhaps automatically by a PDA with satellite communication link.

1. Instant clearing of funds

2. Elimination of payment risk

3. Secure transaction using strong encryption

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CHAPTER 12

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 digital-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 digital-cash and proving Minas 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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REFERENCES

[1] www.goldmoney.com\futuremoney.html

[2]www.scribd.com\moneypad.html