E-Cash

Electronic money is dominating the way we do payments now a days. Most common ways to do an payment electronically is by using the credit card or debit card. There are two main issues related to these kind of the payments.

1. On Line System:
During the process of payment of money from user to merchant, the merchant first establishes an online connection with the bank which involved in the transfer of money from the purchaser's account to the merchant's account. This online system should be avoided because of two reasons.
(a) It is against to the accepted concept of the payment. In conventional money transfer when person A want to give x amount of money to B. A need not to contact the bank in any way. He just gives the note of amount x to B, and by this the transaction is over.
(b) It is always not possible to establish a connection with the bank, may be due to lack of network infrastructure or due to error in connection or server problems etc. This inability in establishing the connection should not become a hurdle for the payment between spender and merchant.

2. Identity of the Spender :
Bank can collect the details of the expenditure pattern of the spender by keep tracking of all his payments. This is highly undesirable because it vanishes all the privacy of the spender.

E-Cash is the solution for all the above problems. When E-Cash is used for the payment it does not involves any third party like bank during the money transfer therefore the requirement of online system is suppressed. At the same time E-Cash did not reveal any information about the spender to the bank when it is presented there for its redemption.