Electronic purse

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Electronic purse
See also

Electronic purse - it is a mechanism that allows end users to pay electronically for goods and services. The functions of the electronic purse is to maintain a pool of value that is incrementally reduced as transaction performed [1]. Electronic purse is an electronic system e-commerce, based on smart card. Electronic purse must ensure the security of each transaction [2].

Advantages of electronic purse

The advantages of the electronic purse are summarized as below [3] [4]:

  • Authentication of the purse by the issuer - authentication of the purse by the issuing institution, which is not necessarily a banking institution, can be done either online or offline.Online authentication uses a secret key shared between the issuer of the purse and the smart card of the purse itself. This key allows the derivation of a common session key that will serve to compute the MAC to protect the integrity of the data exchanges and to encrypt the authentication data.Offline authentication uses RSA-based hierarchical certificates for mutual authentication and for the exchange of a temporary session key next between the chip card and the terminal
  • Loading of value - Loading the purse with value depends on whether the purse is linked to a bank account. If the purse is linked to a bank account, the conversion of the monetary value to a dematerialized from stocked in the purse in under direct control of the holder's bank. Authentication of the card, verification of the holder's identity on the basis of a PIN, and authorization of the transaction can be done at once. The exchanges involve the card, the load device, and the authorization server of the issuing bank. The purse is not linked to a bank account when the line of credit is from a totally separate account or if it entails a revolving credit. In these cases, the risk of error or fraud increases and the authentication is more complex. The communication protocol must verify the integrity of the value transfer from the client's bank (or from that of the purse issuer) to the acquirer bank in addition to the authenticity and the identity of the cardholder and of the card that the holder presents.
  • Point-of-sale transactions - the protocol for point-of-sale payments defines procedure for offline reciprocal authentication of the purse and the point-of-sale terminal. This protocol conforms to the EMV specifications and cover single transactions as well as a series of periodic transactions (such as the payment for service bills). The terminal can authenticate the card with the public certificates of the card issuer and of the issuing bank.



  1. HIMSS (2010)
  2. Singh N.K. (2013)
  3. Sherif M.H (2016)
  4. Vadlamani R. (2008)

Author: Aldona Pająk