MBA (General) - IV Semester, Information Technology and E-Business, Unit 3.2
Define PayPal
PayPal provides easy interface to send money to anyone by giving the person’s e-mail account. In order for the person to retrieve the money, they must have a PayPal account. To avoid fraud, PayPal sends an e-mail message to both the initiator and the recipient of the transaction.
PayPal is used to settle online auctions, such
as eBay auctions. The ease of use and the fact that no credit card is required
to use it makes PayPal increasingly popular.
Example
Indian Railways online reservation system
(operated by IRCTC) is very impressive and it supports a wide range of Internet
banking services, credit card payments and other payment systems as can be seen
below.
Smart Cards
Smart cards are cards that look like credit
cards, but store information on a microprocessor chip instead of magnetic
strips. A microchip can hold significantly more information than a magnetic
strip. Because of this capacity, a single smart card can be used for many
different purposes.
Unlike magnetic strip cards which can be read
by any magnetic reader, and are therefore vulnerable to loss or theft, a smart
card can be password-protected to guarantee that it’s only used by the owner.
Smart cards can run RSA encryption and can be
programmed to generate a pair of public/private keys. The public key is made
publicly readable, but the private key is be stored on the card without anyone
being able to copy it. Therefore, to use the private key, the user must
physically possess the card.
Smart cards are used in European telephones,
and are gaining popularity for other purposes both in Europe and in the US.
