Secure and privacy preserving digital payment
Balaji Rajendran, Anoop Kumar Pandey, B. S. Bindhumadhava · 2017
Digital Payments are growing by leaps and bounds across the world, owing to the large scale adoption of smart phones that are replacing the traditional wallets. As a technology in its nascent stages, issues concerning security and privacy are not fully addressed, and various mechanisms are being proposed. In this paper, we propose Digital Tokens as an abstraction of the underlying fiat currency of equivalent value in order to provide the privacy and security in digital payments. We introduce an intermediate entity in the system that mediates a transaction between the payer and payee, which can be played by existing payment service providers. The strength of our approach lies in building upon the existing payment system without causing inconvenience to the payer and the payee and at the same time guaranteeing privacy, protection against potential frauds, and provides interoperability across banks, devices, and service providers.