System and method for monetary transaction

A system (100) for monetary transaction, said system (100) characterized by comprising:

• two or more chips (102) incorporated into a monetary transaction means (104), wherein the chips (102) are configured to initiate the monetary transaction;
• a receiving end (116) configured to enable a user to perform the monetary transaction using the monetary transaction means (104), wherein the receiving end (116) comprising:
• a processor (106);
• a memory (108) comprising a set of instructions, which when executed by the processor (106) cause the processor (106) to:
• transfer a pre-defined amount of money to a pooled account (110) via a network (112);
• load the pre-defined amount of money transferred in a form of tokens from the pooled account (110);
• sync the monetary transaction means (104) and the receiving end (116) prior to initiating the monetary transaction;
• receive a communication signal at the receiving end (116) by the monetary transaction means (104) when the user initiates the transaction;
• receive a security code entered by the user on an interface of the receiving end (116) upon initiating the monetary transaction;
• authenticate the monetary transaction means (104) for a closed loop network;
• verify the security code entered by the user with a pre-stored code, wherein the pre-stored code is encrypted within the monetary transaction means (104);
• complete the monetary transaction upon receiving a positive authentication result and a positive verification code;
• store the completed monetary transaction on the receiving end (116);
• and
• transfer the money from a financial institution associated to the user to a financial institution associated with the receiving end (116) upon connecting the receiving end (116) to the network (112).