GB2496595A - Smart phone payment application using two-dimensional barcodes - Google Patents

Smart phone payment application using two-dimensional barcodes Download PDF

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Publication number
GB2496595A
GB2496595A GB1119593.0A GB201119593A GB2496595A GB 2496595 A GB2496595 A GB 2496595A GB 201119593 A GB201119593 A GB 201119593A GB 2496595 A GB2496595 A GB 2496595A
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United Kingdom
Prior art keywords
sequence
code
mobile application
mobile
transaction
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GB1119593.0A
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GB201119593D0 (en
Inventor
Daniel Chung
Patrick Poon
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Hutchison Whampoa Enterprises Ltd
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Hutchison Whampoa Enterprises Ltd
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Priority to GB1119593.0A priority Critical patent/GB2496595A/en
Publication of GB201119593D0 publication Critical patent/GB201119593D0/en
Publication of GB2496595A publication Critical patent/GB2496595A/en
Withdrawn legal-status Critical Current

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    • GPHYSICS
    • G06COMPUTING OR CALCULATING; COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/08Payment architectures
    • G06Q20/20Point-of-sale [POS] network systems
    • G06Q20/204Point-of-sale [POS] network systems comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
    • GPHYSICS
    • G06COMPUTING OR CALCULATING; COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/30Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/322Aspects of commerce using mobile devices [M-devices]
    • G06Q20/3227Aspects of commerce using mobile devices [M-devices] using secure elements embedded in M-devices
    • GPHYSICS
    • G06COMPUTING OR CALCULATING; COUNTING
    • G06QINFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00Payment architectures, schemes or protocols
    • G06Q20/30Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/32Payment architectures, schemes or protocols characterised by the use of specific devices or networks using wireless devices
    • G06Q20/327Short range or proximity payments by means of M-devices
    • G06Q20/3274Short range or proximity payments by means of M-devices using a pictured code, e.g. barcode or QR-code, being displayed on the M-device
    • GPHYSICS
    • G07CHECKING-DEVICES
    • G07FCOIN-FREED OR LIKE APPARATUS
    • G07F7/00Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G07F7/0806Details of the card
    • G07F7/0813Specific details related to card security
    • G07F7/0826Embedded security module

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  • Business, Economics & Management (AREA)
  • Engineering & Computer Science (AREA)
  • Accounting & Taxation (AREA)
  • Physics & Mathematics (AREA)
  • General Physics & Mathematics (AREA)
  • Theoretical Computer Science (AREA)
  • General Business, Economics & Management (AREA)
  • Strategic Management (AREA)
  • Computer Networks & Wireless Communication (AREA)
  • Computer Security & Cryptography (AREA)
  • Finance (AREA)
  • Development Economics (AREA)
  • Economics (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
  • Cash Registers Or Receiving Machines (AREA)
  • Telephone Function (AREA)
  • Telephonic Communication Services (AREA)

Abstract

A payment system using a handheld mobile communications device such as a smart phone, comprising: a mobile application 13 installed on the handheld mobile communications device having: a security module 13A to prevent unauthorised access of the mobile application for example using facial recognition, a password, PIN or gesture; and a display module 13B to display an optically readable two-dimensional code corresponding to a sequence of characters which may be encrypted and may be generated at the mobile phone or received via a network; a Point of Sale (POS) terminal 14 to optically read and decode the displayed code into the sequence; and a server 16 to receive the sequence transmitted via a network 15 by the POS terminal and to verify the authenticity of the sequence; wherein if the sequence is authenticated by the server, the server enables the transaction to be posted to a predetermined customer account. The sequence may be used only once or expire after a predetermined time.

Description

A payment system for conducting a cashless transaction using a handheld mobile communications device
Technical Field
The invention concerns a payment system for conducting a cashless transaction using a handheld mobile communications device.
Background of the Invention
Banks, vendors, merchants, telecommunication providers are currently conducting pilot tests using NFC (Near Field Communication) for mobile payments Mobile payments enable contactless payments using a smart phone equipped with a special chip card and antenna. the success of NFC depends on the interoperatibility among handset manufacturers, SIM and P05 systems and financial institutions. The complexity of the system for interoperability means there are a lot of potential technical and security issues that have to be solved before a public launch for the consumer market.
Accordingly, it is desirable to provide an interim system and method to enable contactless payments using existing smart phones that may or may not have NEC functionality.
Summary of the invention
In a first preferred aspect, there is provided a payment system for conducting a cashless transaction using a handheld mobile communications device, the system comprising: * a mobile application installed on the handheld mobile communications device having: a security module to prevent unauthorised access of the mobile application; and a display module to display an optically readable two-dimensional code corresponding to a sequence of characters; a Point of Sale (POS) terminal to optically read and decode the displayed code into the sequence; and a server to receive the sequence transmitted via a network by the P05 terminal and to verify the authenticity of the sequence; wherein if the sequence is authenticated by the server, the server enables the transaction to be posted to a predetermined customer account.
The predetermined customer account may be a credit card account or mobile network operator account of the mobile communications device.
The sequence of characters may be a One lime Payment Code (OTPC).
The optically readable two-dimensional code may be any one from the group consisting ot Quick Recognition (QR) codeiM, graphical image, high-capacity color barcode (HCCB), Aztec Code, Data Matrix, PDF417, ShotCode, Trillcode, Quickmark, Beetagg and SPARQCode.
* The code and/or sequence may be encrypted using a predetermined encryption algorithm.
The OTPC may only be used once, and expires after a predetermined duration or if another OTPC is generated.
The code may be generated from data relating to the Mobile Subscriber Integrated Services Digital Network Number (MSISDN), predetermined expiry time of the code, a security key obtained when the mobile application is executed for the first time and a pointer to a credit card to be used for the transaction.
The code may be authenticated by successful decryption of the code, validating the MSISDN and checking that the code has not expired.
S The code may be generated by the mobile application.
The code may be transmitted to the mobile application via a network.
If the predetermined customer account is a credit card account, the credit card account may be selected from a plurality of credit card accounts from a selection screen displayed by the mobile application.
The security module may be any one from the group consisting of: facial recognition, a combination of alphanumeric characters, and a gesture drawn on the screen.
The handheld mobile communications device may be a smart mobile phone using an operating system from any one from the group consisting of: AndroidTM, iOSTM, Windows Phone and BlackberrytM.
In a second aspect, there is provided a method for conducting a cashless transaction using a handheld mobile communications device, the method comprising: displaying an optically readable two-dimensional code corresponding to a sequence of characters using a mobile application installed on the handheld mobile * communications device optically reading and decoding the displayed code into the sequence; and receiving the sequence transmitted via a network and verifying the authenticity of the sequence; wherein if the sequence is authenticated, the transaction is posted to a predetermined customer account.
In a third aspect, there is provided a mobile application for a handheld mobile communications device, the application comprising: a security module to prevent unauthorised access of the mobile application; and 23 a display module to display an optically readable two-dimensional code corresponding to a sequence of characters; wherein if the sequence is authenticated by a server, the server enables a cashless transacon to be posted to a predetermined customer account.
Brief Description of the Drawings
An example of the invention will now be described with reference to the accompanying drawings, in which: Figure 1 is a system diagram of a payment system for conducting a cashless transaction using a handheld mobile communications device in accordance with an embodiment of the present invention; Figure 2 is a process flow diagram of a one-time activation process in accordance with an embodiment of the present invention; Figure 3 is a set of screen layout diagrams for generating a QR code for conducting a cashless transaction in accordance with an embodiment of the present invention; and Figure 4 is a process flow diagram of using the generated OR code to effect a payment transaction show communication between a POS terminal, a mobile network operator's system and bank's system.
Detailed Description of the Drawings
Figure 1 and the following discussion are intended to provide a brief, general description of a suitable computing environment in which the present invention may be implemented. Although not required, the invention will be described in the general context of computer-executable instructions, such as program modules, being executed by a computer such as a personal computer, laptop computer, notebook computer, tablet computer, PDA and the like. Generally, program modules include routines, programs, characters, components, data structures, that pet-form particular tasks or implement particular abstract data types. As those skilled in the art will appreciate, the invention may be practiced with other computer system configurations, including hand-held devices, multiprocessor systems, microprocessor-based or programmable consumer electronics, network PCs, minicomputers, mainframe computers, and the like. The invention may also be practiced in distributed computing environments where tasks are performed by remote processing devices that are linked through a communications network. In a distributed computing environment, program modules may be located in both local and remote memory storage devices.
Referring to the drawings, a payment system 10 for conducting a cashless * transaction by a userfcustomer 11 using a handheld mobile communications device is provided. The system 10 generally comprises: a mobile application 13, a Point of Sale (P08) terminal 14 and a server 16.
The mobile application 13 is installed on the handheld mobile communications device. The mobile application 13 has a security module 13A to prevent unauthorised access of the mobile application 13. The mobile application 13 also has a display module 1 3B to display an optically readable two-dimensional code 34 corresponding to a sequence of characters, The sequence of characters is preferably a One Time Payment Code (OTPC). The optically readable two-dimensional code 34 may be a Quick Recognition (QR) codetM, graphical image, high-capacity color barcode (}-ICCB), Mtec Code, Data Matrix, PDF4I7, ShotCode, Trilicode, Quickmark, Beetagg and SPARQC0de. The code and/or sequence is encrypted using a predetermined encryption algorithm. This provides protection to the user when the information is being transmitted over an unsecure network 15. The OTPC is only used once. The OTPC expires after a predetermined duration or expires immediately if subsequent OTPC is generated.
The main purpose of the mobile application 13 is to create a one-time payment code (OTPC) for performing a purchase transaction. The OTPC may be generated offline, that is, without a 3Gllnternet connection. Alternatively, it may be generated elsewhere and transmitted to the smart phone via a 3G/lnternet connection. The OTPC is preferably presented in the QR code format. This enables shorter development time to deploy the system and a more adaptable system for existing * smart phones which may not have NFC capability.
Mobile contact-less payment is enabled by use of a One Time Payment Code (OTPC). The OWC is a user identifier (a sequence of characters, for example! alphanumeric characters) for authorisation of a mobile payment. Preferably, the OTPC is directly generated on the smart phone at any time, and anywhere without any 3G network interaction with an external server. In other words, the OTPC is preferably generated offline. This enables complete independence from network connectivity and therefore offers maximum availability and response. OTPC is generated based on an intrinsically secure algorithm that contains encrypted parameters about the user such as; MSISDN, a pointer of the selected credit card, security key (that was downloaded during service activation), date/time of the transaction.
There are no payment credentials such as the actual credit card number or any financial information such as the transaction amount or personal PIN stored within the OTPC.
In order to support retail card-present transaction, the OTPC is encrypted in the QR code format. For counterfeit protection, every OTPC can only be used a single time and will expire after a predetermined time period is exceeded (for example, 10 minutes) or will immediately expire when another/subsequent OPTC is generateth Another security feature is two-factors authentication which is trusting of the smart phone and mobile application 13 during first-time activation and Personal PIN to generate the OTPC/QR Code.
The Point of Sale (POS) terminal 14 is located at the merchant and is operated by a cashier. The P05 terminal 14 optically reads and decodes the displayed QR 34 code into the sequence, when the OR code 34 is displayed and presented to the cashier.
The server 16 is within the mobile network operator's system. The server 16 receives the OTPC transmitted via a network 15 by the P05 terminal 14 and to verify the authenticity of the OTPC. lithe OTPC is authenticated by the server 16, the server 16 enables the transaction to be posted to a predetermined customer account.
The predetermined customer account is a credit card account of the user or mobile network operator account of the smart phone, More than one credit card account may be stored in the system, and if so, the user can select which credit card account to be associated with a particular transaction. If the transaction amount of the transaction is posted to the mobile network operator account of the smart phone (mobile phone bill), the user pays the monthly statement incorporating this amount and the usual mobile phone charges such as monthly charges, data subscriptions and data usage, if applicable.
To enable this contact-less payment service, the user visits a branch of the mobile network operator for service provisioning. The branch staff of the mobile network operator identifies the user such as their identification card, Mobile Subscriber * Integrated Services Digital Network Number (MSISDN) and requests a credit card if the payment for transactions is to be made by credit card. The user accepts 24 the Terms & Conditions shown on a registration form to confirm the service subscription. The branch staff will process the provisioning request via a service console. It will be verified and secured in a subscription server. The subscription record in the server registers the customer details including. MSISDN and encrypted credit card account information. The system supports registration of multiple credit cards of the user and also allows the user to select a specific credit card to proceed a current payment transaction.
Turning to Figure 2, the mobile application 13 is downloaded 21 to the smart phone from an application store accessible via the Internet. This is provided as a free download. When the mobile application 13 is executed for the first time by the user on their smart phone, a one-time activation process is performed 22. In this activation process, the mobile application 13 passes an activation request to the mobile network operators system for authentication. The activation request contains the user's MSISDN (retrieved within the smart phone or by query of the mobile network). The mobile network operator's system checks 23 if the MSISDN is a valid pre-registered user that has registered to the service subscription, and if so, an activation code is returned 25 to the smart phone via SMS text message.
The user enters 26 in the activation code contained in the SMS text message into a prompt displayed by the mobile application for verification purpose.
0 Some security parameters are download from the mobile network operators system. These security parameters are stored in the mobile application 13.
Security parameters may include a security key. Credit card details are only stored in the mobile network operator's system and not downloaded, transmitted to or stored locally in the mobile application 13 to reduce the risk of credit card data exposure.
The user can secure against unauthorized use of the mobile application 13 by defining a personal PIN for additional security protection. This may be to unlock the mobile application for use, or for authentication to generate the OR code. Other security mechanisms can be used such as facial recognition of the user's face, or the users hand writing gesture. These security features can be provided in the security module I 3A.
Turning to Figure 3, in a typical scenario, the user is shopping and wants to purchase an item at a retail shop. The user executes the mobile application 13 and inputs 31 their personal PIN to automatically generate 34 a OR code which corresponds to a generated OTPC. If there is more than one credit card associated, the user can select 33 which card to use for the transaction. The user does not need to enter any other information such as the transaction amount.
Turning to Figure 4, the user presents the generated OR code that is displayed on the screen of their smart phone to the cashier for scanning 41 by a scanner operatively connected to a P08 terminal 14. The P05 terminal 14 decodes (not decrypts) the QR code into the OTPC format. Next, the POS terminal 14 transmits 42 the transaction parameters to the mobile network operator for a payment request via fixed data line. The transaction parameters include: the OTPC decoded from the OR code, the transaction amount, the merchant ID, date/time of S transaction. The mobile network operators system decrypts 43 the OTPC it has received. The decrypted OTPC contains information that is used to retrieve the user's payment card credential stored in the mobile network operator's system, after authentication. The user's payment card credential is encrypted and transmitted 44 via a payment gateway path between the mobile network operator's system and a financial institution (for example, an issuer bank) for authorization.
The transaction is immediately verified and processed by the issuer bank. Upon the transaction being verifiedlaccepted, the issuer bank returns an authorization response 45 back to the mobile network operator's system. The mobile network * operator's system then further passes the authorization response to the POS terminal 14 to complete the payment. The transaction history is automatically sent to and stored in the mobile application as a payment record. An SMS text message is sent 46 by the server to the smart phone of the customer to confirm that the payment was successful.
The POS terminal 14 will also print out a paper transaction slip to the user with the following information: MSISDN of user, transaction detailsl amount, authorization code from bank, date/time of transaction, and merchant identification detais.
There are different handling procedures in special situations including when the SIM card or phone is lost, the user change's their smart phone to another phone, or there is a disputed transaction. For a lost SIM card/phone, the stored information * remains secured as only the actual user has the personal PIN to access the mobile application. When the user reports the lost SIM card/phone event to the mobile network operator, the contactless payment service is suspended at the mobile network operator's system and all payment requests will be halted, If the user uses another phone and downloads the mobile application 13 onto the new phone, it will prompt the user to repeat the service activation process. At the same time, the mobile application 13 in the previous phone will become invalid. The contactless payment service is only permitted to be activated for a single phone device for a user. When there is a transaction dispute, the user can present the transaction slip to the merchant. The merchant can then report the case to the mobile network operator with the transaction parameters including MSISDN and authorization code to retrieve the transaction details.
For operation and maintenance, the system 10 provides a management system to support configuration, faults/alarm management, and logging. A system console or API to support CS enquiries including user subscription record and payment transaction event is provided. Reporting is also required for statistical and reconciliation purposes.
Therefore, the system 10 enables the smart phone to be transformed into a type of electronic wallet by using the mobile application 13 because it provides contact-less payment instead of a traditional card swipe method at participating retail stores.
It will be appreciated by persons skilled in the art that numerous variations and/or modifications may be made to the invention as shown in the specific embodiments without departing from the scope or spirit of the invention as broadly described.
The present embodiments are, therefore, to be considered in all respects illustrative and not restrictive.

Claims (1)

  1. <claim-text>WE CLAIM: 1. A payment system for conducting a cashless transaction using a handheld mobile communications device, the system comprising: a mobile application installed on the handheld mobile communications device having: a security module to prevent unauthorised access of the mobile application; and a display module to display an optically readable two-dimensional code corresponding to a sequence of characters; a Point of Sale (POS) terminal to optically read and decode the displayed code into the sequence; and a server to receive the sequence transmitted via a network by the POS * terminal and to verify the authenticity of the sequence; wherein if the sequence is authenticated by the server, the server enables the transaction to be posted to a predetermined customer account.</claim-text> <claim-text>2. The system according to claim 1, wherein the predetermined customer account is a credit card account or mobile network operator account of the mobile communications device.</claim-text> <claim-text>3. The system according to claim 1 or claim 2, wherein the sequence of characters is a One Time Payment Code (OTPC).</claim-text> <claim-text>4. The system according to any one of the preceding claims, wherein the optically readable two-dimensional code is any one from the group consisting of: S Quick Recognition (OR) coderM, graphical image, high-capacity color barcode (HCCB), Aztec Code, Data Matrix, PDF417, ShotCode, Trillcode, Quickmark, Beetagg and SPAROCode, 5. The system according to any one of the preceding claims, wherein the code and/or sequence is encrypted using a predetermined encryption algorithm.6. The system according to claim 3 or any claim dependent thereon, wherein the OTPC is only used once, and expires after a predetermined duration or it another OTPC is generated. I'7. The system according to any one of the preceding claims, wherein the code is generated from data relating to the Mobile Subscriber Integrated Services Digital Network Number (MSISIJN), predetermined expiry time of the code, a security key obtained when the mobile application is executed for the first time and a pointer to a credit card to be used for the transaction.8. The system according to claim 5 or any claim dependent thereon, wherein the code is authenticated by successful decryption of the code, validating the MSISDN and checking that the code has not expired.9. The system according to any one of the preceding claims, wherein the code is generated by the mobile application.* 10. The system according to any one of the preceding claims, wherein the code is transmitted to the mobile application via a network.11. The system according to any one of the preceding claims, wherein if the predetermined customer account is a credit card account, the credit card account is selected from a plurality of credit card accounts from a selection screen displayed by the mobile application.12. The system according to any one of the preceding claims, wherein the security module is any one from the group consisting of: facial recognition, a combination of alphanumeric characters, and a gesture drawn on the screen.13. The system according to any one of the preceding claims, wherein the * handheld mobile communications device is a smart mobile phone using an operating system from any one from the group consisting of: AndroidtM, iOS, Windows PhoneTM and BlackberrytM.14. A method for conducting a cashless transaction using a Fiandheld mobile communications device, the method comprising: displaying an optically readable two-dimensional code corresponding to a sequence of characters using a mobile application installed on the handheld mobile communications device optically reading and decoding the displayed code into the sequence; and receiving the sequence transmitted via a network and verifying the authenticity of the sequence; wherein if the sequence is authenticated, the transaction is posted to a predetermined customer account.15. A mobile application for a handheld mobile communications device, the application comprising: a security module to prevent unauthorised access of the mobile application; and a display module to display an optically readable two-dimensional code corresponding to a sequence of characters; wherein if the sequence is authenticated by a server, the server enables a cashless transaction to be posted to a predetermined customer account.IS 16. A system substantially as shown in or as described with respect to any of the accompanying drawings.17. A method substantially as shown in or as described with respect to any of the accompanying drawings.18. A mobile application substantially as shown in or as described with respect to any of the accompanying drawings.</claim-text>
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CN105809745A (en) * 2016-03-07 2016-07-27 深圳市京泰基科技有限公司 System and method for verifying passenger riding information through two-dimensional codes
CN107506995A (en) * 2017-07-28 2017-12-22 苏州蓝越软件有限公司 E-commerce system based on Quick Response Code payment
CN108182769A (en) * 2017-12-29 2018-06-19 新开普电子股份有限公司 A kind of intelligence POS terminal machine
WO2020096546A3 (en) * 2018-11-08 2020-07-09 Turkiye Garanti Bankasi Anonim Sirketi A gsm payment system
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Cited By (8)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO2014199188A1 (en) * 2013-06-13 2014-12-18 Cellum Global Innovácios És Szolgáltató Zrt. Method for initiating mobile web payment
CN103489100A (en) * 2013-10-22 2014-01-01 上海富友支付服务有限公司 Cardless issuing card and electronic wallet application system and method based on conventional financial terminal
WO2015062255A1 (en) * 2013-10-31 2015-05-07 Tencent Technology (Shenzhen) Company Limited Information processing method, device and system
CN105809745A (en) * 2016-03-07 2016-07-27 深圳市京泰基科技有限公司 System and method for verifying passenger riding information through two-dimensional codes
CN107506995A (en) * 2017-07-28 2017-12-22 苏州蓝越软件有限公司 E-commerce system based on Quick Response Code payment
CN108182769A (en) * 2017-12-29 2018-06-19 新开普电子股份有限公司 A kind of intelligence POS terminal machine
WO2020096546A3 (en) * 2018-11-08 2020-07-09 Turkiye Garanti Bankasi Anonim Sirketi A gsm payment system
WO2021173104A1 (en) * 2020-02-28 2021-09-02 Akmaz Oezkan A bonus point earning, spending and sharing system used by companies and individuals in all sectors

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