The project envisages the implementation of an e-payment system utilizing FIPS-201 Smart Card. The system combines hardware and software modules. The hardware module takes data insertions (e.g. currency notes), processes the data and then creates connection with the smart card using serial/USB ports to perform further mathematical manipulations. The hardware interacts with servers at the back for authentication and identification of users and for data storage pertaining to a particular user. The software module manages database, handles identities, provide authentication and secure communication between the various system components. It will also provide a component to the end users. This component can be in the form of software for computer or executable binaries for PoS devices. The idea is to receive data in the embedded system from data reader and smart card. After manipulations, the updated data is imprinted on smart card memory and also updated in the back end servers maintaining database. The information to be sent to a server is sent through a PoS device which has multiple transfer mediums involving wired and un-wired mediums. The user device also acts as an updater; therefore, whenever the smart card is inserted by user, it is automatically updated by synchronizing with back-end database. The project required expertise in embedded systems, networks, java and C++ (Optional).