"Electronic Wallets are Secure"
The idea for paying for goods and services electronically is not a new one. The search for more efficient ways of doing business is now driving another revolution in the conduct of business and in our concept of money. This revolution is known as electronic commerce, which is the symbiotic integration of communications, data management, and security capabilities to allow business applications within different organizations to automatically exchange information related to the sale of goods and services. With the advent of the electronic age the concept of value was transferred to plastic cards with a magnetic stripe which securely carried personal account information. These cards are referred to as electronic or digital wallets. Many challenge how secure electronic wallets can be versus cash payments. This paper will attempt to present to you how the technology involved in electronic "digital wallet" transactions can be more secure and untraceable than cash.
The security of a cash payment depends on the hardness of making acceptable reproductions of banknotes. When using application-level protocols such as SET (Secure Electronic Transactions) and SEPP (Secure Electronic Payment Protocol), one can construct payment systems guaranteeing security. There are several major business requirements addressed by SEPP; 1.
To enable confidentiality of payment information
To ensure integrity of all payment data transmitted
To provide authentication that a cardholder is the legitimate owner of a card account Implementing a security mechanism (SEPP and SET) provides owners of information and administrators with some peace of mind, but not without a trade-off: the more secure one attempts to make a network/server the more difficult it makes it users to access information. SEPP is the electronic equivalent of the paper charge slip, signature, and submission process. The negotiation process...
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