As technology is growing mobile devices are replacing the traditional systems, it is increasing the ease of access but at the cost of resource availability. These light weighted devices comes with lesser memory and processing power. The proposed system is using an enhanced cryptographic technique which will be secure as well as efficient. It uses compression prior to encryption hence both time and space is reduced for further operations, as a result both time and space is saved which plays a vital role in enhancing the performance especially when it is a mobile device. In order to enhance the security firstly the hash function of file is calculated using MD5 algorithm, this hash function is further used as key, then the file is converted into byte code and then it is broken into chunks which is further treated with XOR operation to increase the randomness of data. Several passes of ex-or is performed to make data as random as possible so as to make it less vulnerable against brute force attack. The proposed system uses cryptographic algorithm to achieve confidentiality and MD5 to insure integrity. In this way the proposed system enhances the security as well as performance.