WO2011107576A1

WO2011107576A1 - Mobile payment system

Info

Publication number: WO2011107576A1
Application number: PCT/EP2011/053258
Authority: WO
Inventors: Daniel R. DÖDERLEIN
Original assignee: Mcash Norge As
Priority date: 2010-03-04
Filing date: 2011-03-04
Publication date: 2011-09-09
Also published as: NO20101728A1

Abstract

The invention is thus based on the use of a mobile terminal like a mobile phone owned by the end user and partially identifying the end υser. The mobile phone is provided with an identification code that can be communicated by a merchant or similar to a central server which can communicate back to the mobile phone and request for a security code such as a pin-code which is sent back to the server to confirm the identity and the transfer.

Description

MOBILE PAYMENT SYSTEM

The present in vention relates to a system for executing payments or transferring money comprising a mobile communication device, a central

communication server with access to information regarding the account (e.g. Bank Account) of the users of the system.

Systems for electronic execution of payments are well known, the most common at the present being the use of card terminals. As is well known these systems usually follows a sequence where the merchant or receiver of the payment has a terminal which lets the buyer perform the payment and identify himself with a combination of a card comprising an identifying code (either in a chip or a magnetic stripe) and a personal PlN-code. This solution has turn out to be vulnerable as both the PIN code, the identity of the card and the card itself may be stolen or the terminal may be faked. Therefore several alternative solutions have been proposed.

One alternative solution is described in US patent 5608778, where a mobile phone is used instead of the card, and yet another is discussed in European Patent EP1214693, where the user is equipped with a mobile terminal such as a mobile phone. In the latter the transaction data is transferred from the payment terminal of the merchant through the buyers mobile phone to the bank or system performing the financial transaction. Once the transfer is completed a message is sent through the buyers mobile phone to the merchant This is vulnerable as the mobile phone may be stolen, and it also requires use of protocols being specific to the mobile phone network for communication between the terminal and the mobile phone, which requires permission from the network operator.

Other examples of known solutions are shown in EP 1914675 and

EP 1365368, where the first describes a solution for secure electronic payments, and the latter describes a system and method for financial transactions.

The object of this invention is to provide a more secure system for transferring of transaction data and funds without requiring complex communication protocols or hardware changes in communication terminals like mobile phones. This object is obtained using a system as stated above being characterized as disclosed in the accompanying claims. The invention is thus based on the use of a terminal like a mobile phone controlled by the end user. The end iiser is provided wiih an identification code (User ID) that can be communicated, for example by a merchant or similar, to a central server which can communicate back to the mobile phone and request a security code such as a pin-code which confirm the identity of the end user who thus confirms the transaction, e.g. by sending the security code back to the server. The request for a pin code and corresponding response may be performed by standard protocols such as SMS or over HTTP/HTTPS and the application on the terminal asking for the pin-code and responding maybe provided in software being programmed into the mobile phone, and may also include encryption means for scrambling the transmitted codes.

The invention will be discussed below with reference to the accompanying drawings, illustrating the invention by way of examples.

Figure 1 illustrates a first embodiment involving a user having an ID and a

merchant.

Figure 2 illustrates a second embodiment where the merchant ID is used.

Figure 3 illustrates a third embodiment where the user transfers funds to a third party.

Figure 4 illustrates a fourth embodiment similar to the second embodiment.

In the drawings the sequence describing tire order of the action start at the bottom and ends at the top.

The embodiment illustrated in figure 1 corresponds to the ordinary situation where a customer or user 11 typically pays for goods at a merchant using a payment card. Instead of using the card the user make use of his mobile phone or other machine readable ID. The sequence will then be as follows:

1. The customer 11 initiates the transaction by forwarding his ID to the

merchant, e.g. as a bar code, RFID or even the mobile phone number MSISDN.

2. The seller or merchant 12 transfers all the transaction data, such as ID, amount to be paid, and the identity of the merchant 12 through an established communication system such as internet, vpn, mobile network etc to a central communication server 13. 3. The central communication server 13 identifies the customer 1 i in the database including bank 4 connections etc and may forward a request to the bank to check if the customer has sufficient funds available (Clearing).

4. The bank responds to the central communication server by authorizing the transaction.

5. The central communication server then prompts the customer 11 to

confirm the transaction by identifying himself using a PIN-code or similar. This may involve the system discussed in WO2008026060 or similar.

6. The PEN-code in this example is read by the mobile phone and verified by the central computer and thus identifies the transaction and the user.

7. The transaction is then confirmed by the central computer relative to the merchant 12, typically using the same communication means as in step 2, the merchant thus closing the deal and the customer can leave with his goods.

8. The central computer may then send a receipt to the user, e.g. using SMS.

The order of the steps above may in some cases change, e.g. the bank transaction may either be performed before or after the confirmation (PlN«code) is received from the customer. In figure 2 it is the merchant who provides the ID to the customer, who orders a fund transfer, the sequence being as follows:

1. The merchant or receiver 12 informs the customer 1 1 of the merchant ID.

2. The customer 11 sends a payment order, e.g. by SMS or from an

application or web form, to the central server 13 including the merchant ID and other relevant information such as amount.

3. The central server 13 authenticates (Clearing) the amount relative to the bank 14.

4. The bank confirms the amount requested towards the central server 13.

5. The central server 13 prompts the user to confirm the ordered transfer of funds by prompting the user to enter the ΡΓΝ-code on the mobile device.

6. The user 1 1 authenticates the PIN code, e.g. using the method described in

WO2008026060. 7. The transaction is then confirmed by the central computer relative to the merchant 12, through an established communication system such as internet, vpn, mobile network etc, the merchant thus closing the deal and the customer can leave with his goods.

8. The central computer may then send a receipt to the user, e.g. using SMS.

The order of the steps above may in some cases change, e.g. the bank transaction may either be performed before or after the confirmation from the customer.

In figure 3 the system is used for transferring fluids from one user to another.

1. The first user 11 sending the funds creates a payment order, including the amount and the identity e.g. the mobile subscriber number of the receiver 12b, and sends it e.g. through SMS, to the central server 13.

2. The central server authenticates the amount and payment at the first users bank 14.

3. The bank confirms the amount and possibly the transfer to the central server 13.

4. The central server asks the first user to authentic himself and to confirm the transaction as discussed above.

5. The first user authenticates himself, e.g. using the method mentioned above.

6. The central server confirms to the receiver of the payment e.g. through

SMS to the receivers mobile phone that the payment is performed and that the funds are made available to the receiver.

7. Possibly a receipt is sent to the user 1 1.

Figure 4 corresponds to the example discussed in figure 2 where the receiver 12b gives the information e.g. the merchant ID and amount to the customer 11 , who sends the payment order to the central communication server.

Communications described as SMS may include other means such as Data over HTTP, HTTPS, via SMS, via MMS, or any available protocol. Also, the central communication server may be more or less integrated in the bank, or a separate unit. To summarize the invention thus relates to a system for executing payments or transferring money. The system comprises a mobile communication terminal 1 1 such as a mobile phone, the communication terminal and or user being related to unique identification code such as bar code, RFID, Mobile Subscriber Number or similar. This also includes a unique code held by the same owner as the communication terminal, but physically separated from it, but at the disadvantage that the two may be separated thus hindering the owner in perfon.ni.rtg payments. Preferably the two are physically integrated., but in some cases one person may have limited access to funding and thus may have a phone number or bar code, but any transaction may be confirmed by a second person in a different position .

The system also comprises a central communication server 13 being connected with a database containing information regarding the bank account of at least one user of said mobile communication terminal and being adapted to transfer funds between bank, accounts, as well as a receiver terminal 12,12a,12b being adapted to communication with the central communication server 13, the receiver terminal also being related to a bank account available to the central communication server 13, the receiver terminal also being related to a bank account. The receiver terminal or mobile communication terminal being adapted to transmit a message to said central

communica tion server 13 representing the identification code of the mobile

communication terminal 12 and the amount to be transferred from the user 11 bank account to the receiver 12,12a,12b bank account 14.

The central communication server being adapted to transmit a confirmation message to the mobile communication terminal, wherein the mobile communication terminal being adapted to, on the receipt of the confirmation signal , request an acceptance code from the owner and to return an acceptance signal to the central communication server. The cenual communication server being adapted to perform the requested fund transfer upon the receipt of the confirmation signal.

Preferably the mobile communication terminal comprises a unit adapted to recognize the confirmation message and upon its receipt request a unique code, e.g. pin- code, fingerprint, etc, from the user, and tiansmttting the return signal upon the receipt of the correct code. Receiver terminal is preferably adapted to read the identitification code of the mobile communication terminal, said code being provided as a machine readable code such as bar code, RFID, etc.

Thus there are several possible uses of the present invention, such as providing for transactions from one mobile terminal to another, where the receiver mobile acts as a receiver terminal, for example a mobile phone registered to a company. The preferred embodiment of the invention is, however, where the receiving terminal may be connected to the sales point cash register. Tt is also possible to use the invention when paying to a web site. This will correspond to a payment made to a terminal except that the customer registers the phone number (or other ID-code) to a web site instead of letting it be read at et cash register. In other words the end user identifies himself to the payment receiver by giving a unique code from the user, such as a phone number, and in that the mobile receives a confirmation message that initiates the request for a unique code from the user. This unique code may be biometric ID, such as fingerprint, or a pin- code. When the user terminal recognizes the unique code a return signal may confirm the transaction.

Claims

C l a i m s

1. System for executing payments or transferring money comprising:

a mobile communication terminal, the communication terminal being related to unique identification code,

a central communication server being connected with a database containing information regarding the bank account of at least one user of said mobile communication terminal and being adapted to transfer funds between bank accounts, and

a receiver terminal being adapted to communication with the central communication server* the recei ver terminal also being related to a bank account available to the central communication server, the receiver terminal also being related to a bank account,

wherein the receiver terminal or mobile communication terminal is adapted to transmit a message to said central communication server representing the identification code of the mobile communication terminal and the amount to be transferred from the user bank account to the receiver bank account,

the centra! communication server being adapted to transmit a confirmation message to the mobile communication terminal,

the mobile communica tion terminal being adapted to, on the receipt of tire confirmation signal, request an acceptance code from the owner and to return an acceptance signal to the central communication server,

the central communication server being adapted to perform the requested fund transfer upon the receipt of the confirmation signal, and

wherein the mobile communication terminal comprises a unit adapted to recognize the confirmation message and upon its receipt request a unique code, e.g. pin- code_:, fingerprint, etc, from the user, and transmitting the return signal upon the receipt of the correct code.

2. System according to claim 1 , wherein the receiver terminal is adapied to read the identification code of the mobile communication terminal, said code being provided as a machine readable code such as bar code, ROD, etc.

3. System for executing payments or transferring money comprising:

a receiver terminal being adapted to communication with the central communication server, the receiver terminal also being related to a bank account available to tire central communication server, the receiver terminal also being related to a bank account,

the central communication server being adapted to transmit a confirmation message to the mobile com.numicat.ion terminal,

the mobile communication terminal being adapted to, on the receipt of the confirmation signal, request an acceptance code from the owner and to return an acceptance signal to the central communication server,

wherein the receiver terminal is adapted to read the identification code of the mobile communication terminal, said code being provided as a machine readable code such as bar code, RF1D, etc.

4. System according to claim 1„ wherein the mobile communication tenninal comprises a unit adapted to recognize the confirmation message and upon its receipt request a unique code, e.g, pin-code, fingerprint, etc, from the user, and transmitting the return signal upon the receipt of the correct code.