MONEY PAD: THE FUTURE WALLET

CHAPTER 1
INTRODUCTION
1.1Introduction of technical seminar:
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 supplanted by
smartcards, digital cash and instant transfers of funds. The large paper bureaucracy of banks is quickly
becoming redundant, burdensome, even antiquated. 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.
Advancement’s 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 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 recognises Finger Prints of the user and decides whether the user
is an authorised 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 user’s, he will be allowed to access and use the Pad otherwise the Money Pad is not accessible.

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1.2 KEY WORDS

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

Digital or Electronic Cash or Digi-cash or E-cash or Encash 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.

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.

Biometrics Technology: Technology used to accurately identify and verify an individual’s identity.

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

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

Fiat Money: Authorized money.

Specie-Backed: Coined money.

Legitimate: law full

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CHAPTER 2

TECHNICAL DETAILS OF THE PAPER

2.1Basic of The Present system:

Fig 2.1: basic 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.

2.2Credit Card:

Fig 2.2: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

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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 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 is expired.

Credit cards are issued after an account has been approved by the credit provider, after which card
holders 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

2.3Smartcards:

Fig 2.3.1:smart card Fig 2.3.2:smart card applications

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 as identification, storing bank account information and holding digital cash.

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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

2.4 Electronic Purses and Debit Cards

Despite the increasing flexibility, relationship-based cards are credit based and settlement occurs at the end
of the billing cycle. There remains a need for a financial instrument to replace cash. To meet this need, banks,
credit card companies, and even government institutions are racing to introduce "electronic purses," wallet-
sized smart cards embedded with programmable microchips that store sums of money for people to use instead
of cash for everything from buying food, to making photocopies, to paying subway fares.

2.4.1 The Electronic Purse Works in the Following Manner

After the purse is loaded with money, at an ATM or through the use of an inexpensive special
telephone, it can be used to pay for, say, candy in a vending machine equipped with a card reader. The
vending machine need only verify that a card is authentic and there is enough money available for a
chocolate bar. In one second, the value of the purchase is deducted from the banker on the card and added
to an e-cash box in the vending machine. The remaining balance on the card is displayed by the vending
machine or can be checked at an ATM or with a balance-reading device. Electronic purses would virtually
eliminate fumbling for change or small bills in a busy store or rush-hour toll booth, and waiting for a credit
card purchase to be approved. This allows customers to pay for rides and calls with a prepaid card that
"remembers" each transaction. And when the balance on an electronic purse is depleted, the purse can be
recharged with more money. As for the vendor, the receipts can be collected periodically in person—or,
more likely, by telephone and transferred to a bank account. While the technology has been avaikble for a
decade, the cards have been rektively expensive, from $5 to $10. Today the cards cost $1, and special
telephones that consumers could install at home to recharge the cards are projected to cost as little as $50.
A simple card reader would cost a merchant less than $200.

2.5 Electronic Checks

Electronic checks are another form of electronic tokens. They are designed to accommodate the many
individuals and entities that might prefer to pay on credit or through some mechanism other than cash. Buyers
must register with a third-party account server before they are able to write electronic checks. The account
server also acts as a billing service. The registration procedure can vary depending on the particular account
server and may require a credit card or a bank account to back the checks. Onceregistered, a buyer can then
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contact sellers of goods and services. To complete a transaction, the buyer sends a check to the seller for a
certain amount of money. These checks may be sent using e-mail or other transport methods. When deposited,
the check authorizes the transfer of account balances from the account against which the check was drawn to
the account to which the check was deposited. The e-check method was deliberately created to work in much
the same way as a conventional paper check. An account holder will issue an electronic document that contains
the name of the payer, the name of the financial institution, the payer's account number, the name of the payee
and amount of the check. Most of the information is in encoded form. Like a paper check, an e-check will bear
the digital equivalent of a signature: a computed number that authenticates the check as coming from the owner
of the account. And, again like a paper check, an e-check will need to be endorsed by the payee, using another
electronic signature, before the check can be paid. Properly signed and endorsed checks can be electronically
exchanged between financial institutions through electronic clearinghouses, with the institutions using these
endorsed checks as tender to settle accounts.

Advantages:

 They work in the same way as traditional checks, thus simplifying customer education.
 Electronic checks are well suited for clearing micro payments; their use of conventional
cryptography makes it much faster than systems based on public-key cryptography e-cash).
 Electronic checks create float and the availability of float is an important requkement for
commerce. The third-party accounting server can make money by charging the buyer or seller a
transaction fee or a flat rate fee, or if can act as a bank and provide deposit accounts and make
money on the deposit account pool.

Financial risk is assumed by the accounting server and may result in easier acceptance. Reliability and
scalability are provided by using multiple accounting servers. There can be an inter account server protocol to
allow buyer and seller to "belong" to different domains, regions, or countries. You all must agree that the
major issue of concern while doing paying is security.In the next section we will discuss one of the Electronic
Payment Systems that is more secure as compared to the above discussed schemes.

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2.6 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

2.7 What is Biometrics

Biometric technologies are defined as automated methods of identifying or authenticating the

identity of a living person based on unique physiological or behavioral characteristics. Biometrics
can provide very secure and convenient authentication for an individual since they cannot be stolen
or forgotten and are very difficult to forge.
A physiological characteristic is a relatively stable physical characteristic, such as an individual’s
fingerprint, hand geometry, iris pattern, or blood vessel pattern on the back of the eye. This type
of biometric measurement is usually unchanging and unalterable without significant duress to the
individual.
A behavioral characteristic is more a reflection of an individual’s psychological makeup. A
signature is the most common behavioral biometric used for identification. Because most
behavioral characteristics vary over time, an identification system using these must allow updates
to enrolled biometric reference

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CHAPTER 3

PROPOSED SYSTEM

3. 1Money Pad:

Money pad is one such medium of exchange, which aims to provide secure means of currency
exchange. It’s 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 Digi-cash. The bank code and account number of
the owner of this money pad is present on the label.

3.2 History of money pad

 Money Pad is a method developed by Tobias Wong for binding bills (usually of one or two dollar
denominations) so that they can be easily carried around, and torn off the pad whenever needed for
payment.

 Another type of Money Pad is a futuristic wallet that operates like a credit card or smartcard,
automatically verifying the user's identity before issuing cash debits thus providing security.

Fig: An example of money pad

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3.2 Technical background

3.2.1 Dimension of money pad

Fig 3.2.1: dimension of money pad card

3.2.2 Chips being used in money pad

Fig 3.2.2 chips used in money pad

Description:

Vcc: Gives biasing voltage to the smart card.

RST: Resets the data stored in the smart card.

CLK: It provides clock signal for the operation.

GND: It provides ground as usual.

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Vpp: It provides programming voltage to the EEPROM.But now it is not used, because the modern cards are
capable of generating programming voltage by itself when comes in contact with a reader.

I/P, O/P: It is the input output port.

AUX1/2: They are auxiliary contacts used by USB devices.

Typical configuration:

• 256 bytes to 4KB RAM.

• 8KB to 32KB ROM.

• 1KB to 32KB EEPROM.

• Crypto-coprocessors (implementing 3DES, RSA etc., in hardware) are optional.

• 8-bit to 16-bit CPU. 8051 based designs are common.

• The price of a mid-level chip when produced in bulk is less than US$1.

3.2.3Money Pad readers:

 Computer based readers

Connect through USB or COM (Serial) ports

 Dedicated terminals

Usually with a small screen, keypad, printer, often also have biometric devices such as thumb print scanner.

Fig 3.2.3.1: computer based readers Fig 3.2.3.2: dedicated terminals

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CHAPTER 4

4.1 Operation of Money Pad:

Fig 4.1: structure 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 an account with some minimum balance. The
authentication details along with his finger print 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.

4.2Transaction 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 authorised user and allows for further transactions. If not, then the
reader comes to know that the user is unauthorised and a provision can be made so that the Digi cash
present in the Money Pad is e-mailed back to the authorised account holder using the user details present

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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.

Fig 4.2:transaction using moneypad

HOW IT WORKS

4.3 Why use Money pad?

 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.

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 Avoids the insecure way of carrying money

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.

 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.

 Can 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 doesn’t require any minimum high deposit
but it requires a small amount which can be meet by a common man.

 Avoids the nuisance of renewing

Money Pad once issued is permanent, as it doesn’t require any kind of renovation.

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CHAPTER 5

5.1 Design of the system:

Fig 5.1: process if issuing money pad

5.2 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 individual’s identity. This involves
identifying his physiological and behavioural 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.

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Fingerprint verification is one such biometric system, which authenticates weather the user is a authorised
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.

Fig 5.2.1: finger print reader

Security mechanism:

 Money pad uses biometrics technology as a security measure.

 Mechanism:
 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 user’s, he will be allowed to access and use the Pad other
wise the Money Pad is not accessible.
 Thus it provides a form of security to the ever-lasting transaction currency of the future "e-
cash."

An overview of fingerprint recognition:

 Fingerprint identification is also known as dactyloscopy or hand print identification.

 It is the analysis of fingerprints for matching purposes generally requires the comparison of several
features of the print pattern.

 These include three basic patterns of fingerprint ridges are the arch, loop, and whorl.

 It is also necessary to know the structure and properties of human skin in order to successfully employ
some of the imaging technologies.
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 Fingerprint sensors:

 A fingerprint sensor is an electronic device used to capture a digital image of the fingerprint
pattern.
 The captured image is called a live scan. This live scan is digitally processed to create a
biometric template (a collection of extracted features) which is stored and used for matching.

 Pattern Based Algorithm:

 Matching algorithms are used to compare previously stored templates of fingerprints against
candidate fingerprints for authentication purposes.
 Pattern based algorithms/Image based algorithms compare the basic fingerprint patterns (arch,
whorl, and loop) between a previously stored template and a candidate fingerprint.
 This requires that the images be aligned in the same orientation.
 To do this, the algorithm finds a central point in the fingerprint image and centres on that.
 In a pattern-based algorithm, the template contains the type, size, and orientation of patterns
within the aligned fingerprint image.
 The candidate fingerprint image is graphically compared with the template to determine the
degree to which they match.

 An efficient fingerprint recognition algorithm is a PHASE BASED IMAGE MATCHING, an image

matching technique using the phase components in 2D Discrete Fourier Transforms (DFTs) of given
images.

 The technique has been successfully applied to high accuracy image registration tasks for computer
vision applications, where estimation of sub-pixel image translation is a major concern.

 The principle of phase-based image matching is introduced using the Phase-Only Correlation (POC)
function (which is sometimes called the “phase-correlation function”)

 Consider two N1×N2 images, registered finger print image f(n1, n2) and input finger print image g(n1,
n2), where we assume that the index ranges are n1 =

 −M1 · · ·M1 (M1 > 0) and n2 = −M2 · · ·M2 (M2 > 0)

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 The proposed algorithm consists of the four steps:

i. Core detection
ii. Rotation and displacement alignment
iii. Common region extraction and
iv. Fingerprint matching.

Fig 5.2.2: flow diagram for proposed algorithm

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ADVANTAGES AND DISADVANTAGES

ADVANTAGES

 Money pads help in instant clearing of funds and avoiding the unprotected way of carrying money.
 Cash will be stored in a form of digital money.
 Faster and smarter.
 Portability.
 Flexibility (no need to carry separate ATM, Debit, Credit card, pan card or cash etc.).
 Highly secured. (deactivates on illegal use).
 Reliability (unaffected by electric and magnetic field).
 This provides strong security because everybody has a different and unique fingerprint.
 Money pad doesn’t require any minimum high deposit. This only needs a small amount which a user
can provide.

It also avoids the nuisance of renewing. Money pads help in instant clearing of funds and avoiding the
unprotected way of carrying money. This eliminates the fear of carrying hard cash with him or her. Cash will
be stored in a form of digital money. This provides strong security because everybody has a different and
unique fingerprint. Unlike requirements asked from credit cards and smart cards applicants, money pad doesn’t
require any minimum high deposit. This only needs a small amount which a user can provide. It also avoids
the nuisance of renewing.

DISADVANTAGES

 Expensive
 It uses fingerprint detection for security purpose. So if a person’s finger gets accidentally cut or injured,
the detection technique will fail to match the patterns.

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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 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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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 recognise 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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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

REFERENCES

1. Computers Today Magazine- October 2011 issues.

2. PC Quest Magazine— October 2011 issue.

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Websites

1. www.goldmoney.com/futuremoney.html

2. www.nightcats.com/sales/free.html

3. www.jurpc.de/aufsatz/20010016.html

4. www.go.com

5. www.google.com

6. www.seminarsonly.com

7. www.scribd.com

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