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INTRODUCTIONElectronic tokens or digital tokens aredesigned as electronic analogs of

various forms of payment backed bya bank or financial institution . Simply

stated, electronic tokens are

equivalent cash backed by the bank.

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TYPES OF TOKEN BASED

E-PAYMENTDigital token based e-payments can be done

through following ways:-

1. Electronic cash (e.g. Digi cash)2. Electronic cheque (e.g. Net cheque)

3. Smart cards or Debit cards (e.g. Mondex

electronic currency card)

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1. ELECTRONIC CASH (DIGI CASH)

Essentially, digital cash mimics the

functionality of the paper cash.

Digital cash is payment message bearing adigital signature which functions as a medium

of exchange or store of value.

It combines computerized convenience with

security and privacy.

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PROERTIES OF DIGITAL CASH

Monetary value

Security

Anonymous Portable

User Friendly

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HOW DOES DIGITAL CASH

WORKS?

BANK

PERSON

APERSON

BSEND DIGITAL

CASH

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2.ELECTRONIC CHEQUE

Electronic cheque are the electronic version

of paper cheque used to conduct transactions

over the internet.

Electronic cheque are design to

accommodate the many individuals and

entities that might prefer to pay on credit or

through some mechanism other than cash.

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ADVANTAGE OF E-CHEQUE

Reduce processing cost:- cost to process a cheque

electronically generally lower than credit cards.

Reduce billing cost:- Less need for invoicing and

lower cost of account receivable administration.

Receive deposits sooner:- Deposit funds nearly

twice as fast as paper-based cheque processing.

Increase sales:- Convert sales that would otherwise

lost.

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HOW DOES E-CHEQUE

WORKS?

PAYER

TRANSFER

ELECTRONIC

CHEQUEPAYEE

FORWARD CHEQUE

FOR PAYER

AUTHENTICATION

ACCOUNTING

SERVER

DEPOSIT

CHEQUE

BANK

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3.SMART CARDS or DEBIT CARDS

(mondex electronic currency card)

A smart card is small device which contains a

tiny integrated chip between layer of plastic.

The chip can store significantly greateramount of data, estimated to be 80 times

more than a magnetic stripe.

Smart card forms the basis for the mondex

system.

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ADVANTAGES OF MONDEX SYSTEM

Mondex was developed to replicate the

physical cash and thus to constitute the

alternatives to notes and coins.

It can provide portability and ease of access.

It is programmable & can store frequently

changing data.

They can resist to tampering.

They can be reloaded with value.

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HOW DOES MONDEX SYSTEMWORKS?

BANKA CONSUMERRETAILER

WHOLE-

SALEREMPLOYEEBANK B

E-CASH

UNIT

ISSUED

PURCHASE

E-CASH

REDEEMED WAGES

PA MENT

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