PAYMENT SYSTEM

Abstract: This invention relates to performing a payment transaction via a mobile network, the system comprising a payment server (21), a database (DB) containing subscriber information, a payment terminal (22) for forming a payment transaction and a wireless terminal (MS). The payment server (21) comprises means for checking the database (DB) for the subscriber's right to pay for products via the payment server (21), means for generating a transaction code and for storing it in the database (DB), means for transmitting said transaction code to the subscriber terminal (MS); the payment terminal (22) comprising means for receiving the transaction code from the subscriber and means for transmitting a payment message; the payment server (21) further comprising means for comparing the transaction code stored in the database (DB) with the payment message received from the payment terminal (22), and means for transmitting information on the accepted payment transaction to the payment terminal.

Description: PAYMENT SYSTEM BACKGROUND OF THE INVENTION [0001] The invention relates to payment of products, and particularly to mobile payment. The term 'mobile payment' refers in this application to payment carried out with a mobile station or a corresponding wireless terminal. [0002] Selecting and paying products via the Internet is known from the prior art, whereby the products are most frequently paid for by means of a credit card. The subscriber thus gives his personal data and credit card number to the seller, who checks that the information is correct. The checking often takes place via payment networks of banks. However, transmitting credit card numbers without encoding in the Internet brings about security risks. Therefore, known solutions also include generation of a transaction code related to the credit card of a particular subscriber. In this way, the real credit card number does not have to be transmitted in the network, but the system is still based on the use of a credit card. [0003] A problem with the above-described arrangement is that it is based on the existence of a credit card and the use of credit card systems, whereby the subscriber cannot select the manner of payment he wishes to use. BRIEF DESCRIPTION OF THE INVENTION [0004] An object of the invention is to provide a method and an apparatus implementing the method in such a way that the above problems can be solved. The object of the invention is achieved with a method and a system which are characterized in what is stated in the independent claims. The preferred embodiments of the invention are disclosed in the dependent claims. [0005] The invention is based on generating a one-time transaction code for a subscriber, by means of which the subscriber can perform a mobile payment. The payment transaction is authenticated and transmitted using this transaction code. In connection with the payment transaction, the code given by the subscriber to the payment terminal is compared with the code generated by the payment system, and it is checked from the subscriber data that the subscriber has a right to pay for his purchases with the mobile payment system in question. The transaction code is not connected to an existing credit card and the manner of payment is not defined. [0006] An advantage of the method and system according to the invention is that the subscriber can pay for the purchases by means of a wireless terminal and does not need to carry any other means of payment with him for the purchase. Further, the subscriber can select the manner of payment, by means of which the mobile payments are charged. When a mobile payment system is used in a shop, the payment transaction at the pay desk is extremely fast, as there is no need for confirmation calls or handling of payment cards. The invention utilizes an existing payment network for mobile payment for transmitting the required information between the payment server and the payment terminal, so that no new equipment needs to be provided for the point of sale. [0007] In a first preferred embodiment of the method according to the invention, the point of sale selected by the subscriber is identified in the payment server on the basis of the request submitted by the subscriber. This reduces the length of the transaction code. In such a case, shop-specific number space, for instance, can be used for transaction codes, whereby the generated transaction code is naturally only valid in the selected point of sale. The term 'point of sale' refers in this application to a specific shop or a department in a department store, for example, where the generated transaction code is valid. By defining the point of sale, security can be increased and a possibility for misuse decreased, in other words possibilities to use the transaction code can be restricted. Another way to reduce the damage caused by possible misuse is to restrict the validity period of the transaction code in such a way that the code is invalidated if it has not been used for payment within a given time from the generation. If the transaction code is invalidated in this way, the subscriber has to request for a new transaction code before being able to pay for his purchases. [0008] In a second preferred embodiment of the method according to the invention, the request concerning the transaction code is transmitted from the subscriber terminal to the payment server by calling a service number. In this case, the subscriber calls the service number with his mobile station when he wishes to perform a mobile payment in a particular point of sale. The service number can be shop-specific, for instance. [0009] In a third preferred embodiment of the method according to the invention, said request is transmitted from the subscriber terminal to the payment server, and/or the transaction code is transmitted from the payment server to the subscriber terminal by means of a message between the subscriber terminal and the payment server. Thus, the subscriber can request for a transaction code by means of a data message, a short message or an e- mail message, for example. In other words, a message refers here generally to any message transmitted between a subscriber terminal and a payment server, and the message does not have to be bound to a particular standard, such as the GSM (Global System for Mobile Communications) standard. The same or different type of message can be used to transmit the transaction code from the payment server to the subscriber terminal. [0010] In a fourth preferred embodiment of the method according to the invention, said request is transmitted from a subscriber terminal to a payment server, and/or a transaction code is transmitted from a payment server to a subscriber terminal by means of a browser application. Thus, the subscriber terminal must comprise a browser application, by means of which server pages can be scanned. The browser application can be implemented by, for instance, a www (World Wide Web) or WAP (Wireless Application Protocol) browser. By means of the application in question, an acknowledgement of a successful payment transaction can also be obtained if required. [0011] In a first preferred embodiment of the system according to the invention, the system comprises a message service centre, whereby a request for a transaction code can be transmitted from the subscriber terminal to the payment server, and/or the transaction code can be transmitted from the payment server to the subscriber terminal by means of a message transmitted between the subscriber terminal and the payment server. The term 'message service centre' refers here to any element enabling transmission of messages between a subscriber terminal and a payment server. It can be, for instance, a short message service centre of the GSM network. [0012] In a second preferred embodiment of the system according to the invention, the means of the system for transmitting a transaction code to a subscriber terminal comprise means for giving the transaction code as a voice message. In this case, the subscriber first calls a service number, from which he is given a generated transaction code as a voice message. Thus, the transaction code does not remain in the memory of the subscriber terminal, but nevertheless, the transmission of the code to the subscriber takes place via the terminal. [0013] In a third preferred embodiment of the system according to the invention, the payment terminal comprises means for receiving a transaction code from the subscriber electronically. This refers to solutions in which the transaction code does not have to be entered manually to the payment terminal. Thus, time is saved at the pay desk and it becomes easier to avoid mistakes. [0014] In a fourth preferred embodiment of the system according to the invention, the payment terminal comprises means for receiving a transaction code from the subscriber by means of a short-range radio connection. This can be implemented by means of the Bluetooth technology, for example. In such a case, the subscriber terminal and the payment terminal must contain the Bluetooth connection option, and the terminals must be brought sufficiently close to each other. [0015] In a fifth preferred embodiment of the system according to the invention, the payment terminal comprises means for receiving a transaction code from the subscriber by means of an infrared connection. In this embodiment as well, the payment terminal must comprise connecting means for an infrared connection, and the distance must be sufficiently short. [0016] In a first preferred embodiment of the payment server according to the invention, the payment server further comprises means for transmitting information on the accepted payment transaction to the subscriber terminal. Thus, the subscriber receives in his terminal a message on the successful payment transaction, for example as a short message, an e-mail message or a WAP message. The message can contain information on the total of the purchases and the point of sale used. BRIEF DESCRIPTION OF THE DRAWINGS [0017] The invention will now be described in more detail by means of preferred embodiments, with reference to the attached drawings, of which [0018] Figure 1 shows a flow chart of a method according to the invention; [0019] Figure 2 shows a block diagram of a system according to the invention; [0020] Figures 3A and 3B show alternative solutions of a detail of the system according to the invention; and [0021] Figure 4 shows a block diagram of a payment server according to the invention. DETAILED DESCRIPTION OF THE INVENTION [0022] Figure 1 shows a flow chart of the method according to the invention. The use of a mobile payment system requires the seller and the subscriber to be registered to use a service. In step 1A, a request is transmitted from the subscriber terminal to the payment server to obtain a transaction code. This takes place when the subscriber has decided that he wishes to perform a mobile payment. In practice, this step can be performed for example when going into a shop which has a mobile payment option. [0023] There are several alternative ways of how to trigger the transmission of the request for a transaction code. One alternative is that the shop is provided with a gate that detects the presence of the subscriber. When the presence of the subscriber has been detected the port generates and transmits a message to the subscriber terminal carried by the detected subscriber. This message can be transmitted for instance with a short-range radio connection, such as Bluetooth, to the subscriber terminal. Alternatively, the system can transmit a short message or any other kind of message to the subscriber terminal after detecting the presence of the subscriber, for example by means of the short-range radio connection. The message received by the subscriber terminal includes all the information (such as information about the point of sale, and information about the service number to which the request should be transmitted) needed by the subscriber terminal in order to transmit a request for a transaction code. The subscriber terminal can be programmed to automatically transmit the request for a transaction code as soon as it has received the message. Alternatively, the subscriber terminal can wait until the message has been received, and only after that, the subscriber manually confirms via the user interface (such as the keyboard) of the subscriber terminal that the request for a transaction code may be transmitted. This confirmation can be carried out by using a PIN code specific for the subscriber terminal in question in order to ensure that only persons who know the PIN code can use the subscriber terminal in paying transactions. [0024] Another way to obtain a transaction code is that the user manually enters into the subscriber terminal the information needed to transmit a request for a transaction code. [0025] The request for a transaction code can be transmitted for instance by calling a particular service number, by sending a short message to a particular service number, by sending an e-mail message or via a WAP page. [0026] In step 1 B, the payment server identifies, on the basis of the request, the subscriber and the point of sale where the subscriber wishes to perform the mobile payment. In step 1C, the payment server checks from the database whether the subscriber has a right to use the mobile payment system. In step 1 D, the payment server generates a transaction code for the subscriber, the code being valid for a given period of time in the particular point of sale. The transaction code is stored in the database. The transaction code can contain, for instance, 2 to 5 numbers, each of which can have values 0 to 9. In step 1 E, the payment server transmits the transaction code to the subscriber terminal. This can take place for instance as a short message, a voice message or the WAP technology. Next, the subscriber selects and collects or subscribes to products, the prices and other required data being entered to the payment terminal for recording. In step 1 F, the subscriber says at the pay desk that he wishes to pay with a mobile payment system, and thus, the transaction code is received by the payment terminal. The transaction code can be received in such a way that the subscriber says the transaction code and the cashier enters it to the payment terminal, or the code can be transferred to the payment terminal electronically, for example with the Bluetooth or infrared technology. On the basis of the entered transaction code and some pre-entered parameters, the payment terminal forms a payment transaction corresponding to a card payment transaction. In this connection, a payment message is formed which contains not only the transaction code but also information on the point of sale and the total of the purchase, for instance. In step 1 G, this payment message is transmitted to the payment server utilizing an existing payment network. In step 1 H, the payment terminal compares the information in the payment message with the transaction code stored earlier. In step 11, the payment transaction is accepted if the transaction code in the payment message corresponds to the saved transaction code, and the transaction code has been used within the determined period at the point of sale originally specified by the subscriber. The payment server transmits an order to pay and attends to the payment from the client to the seller. Manners of payment that can be used include a bill, direct debiting, an existing credit card or a prepayment. In step U, the transaction code is acknowledged as used in such a way that the same transaction code cannot be reused for mobile payment before the code is reactivated. In step 1 K, the information on the accepted payment transaction is transmitted to the payment terminal and to the subscriber terminal. The subscriber terminal can be informed for example by means of a short message. [0027] Deviating from the above example, the payment server can search the database for different information relating to the subscriber. If, for example, according to the database, the subscriber has a right to a regular customer's reduction in the particular shop, the payment server can return this information to the payment terminal, which then calculates the new, corrected total of the purchase. Another additional feature could be that the payment server, having checked the validity of the transaction code, sends the payment terminal identification information on the subscriber, such as the name and the date of birth, by means of which the subscriber can be identified. [0028] Figure 2 shows a block diagram of a system according to the invention. The figure only shows the elements relevant for understanding the invention. In the presented solutions, the invention is implemented in the GSM network, the subscriber apparatus being a mobile station in the GSM network, but the invention can also be applied in other systems. The presented system comprises a subscriber terminal MS, by means of which the connection can be set up to a payment server 21 via a base station BTS, a base station controller BSC and a mobile services switching centre MSC. The payment server 21 is further in data transmission connection to the database DB, in which subscriber data required for mobile payment is stored, and to a payment terminal 22. In the presented solution, the subscriber transmits a request for a transaction code to the payment server 21 by calling a service number, and the transaction code is transmitted to the subscriber as a voice message. The subscriber is identified on the basis of the subscriber number, and it is checked from the database DB whether the subscriber is allowed to use the mobile payment system. Further, the database may contain information required for identification of the point of sale, the subscriber's regular customer information and other data, e.g. the subscriber's date of birth, that can be used for identifying the client at the pay desk. When a transaction code is generated for the subscriber, it is stored in the database DB, from where the correctness of the transaction code used in the payment transaction will be checked later. In the described solution, the transaction code is transferred to the payment terminal 22 by entering it manually, because the payment terminal 22 does not, in this example, contain particular means for transferring the transaction code electronically. The data transmission between the payment terminal and the payment server can be attended to via existing payment networks. Such payment networks are not included in the scope of this invention. [0029] Figures 3A and 3B show alternative solutions of a detail of the system according to the invention. The systems shown correspond to the system of Figure 2 except for a WAP server WAP being added to the system of Figure 3A and a short message service centre SMSC being added to the system of Figure 3B. These additions allow a connection to be set up between a subscriber terminal MS and a payment server 21 either with the WAP technology or short messages to transmit a transaction code request or a transaction code, or to transmit an acknowledgement of a successful purchase. [0030] Figure 4 shows a block diagram of a payment server according to the invention. The payment server is divided into two blocks so as to clarify the idea of the invention, but in practice, the functions of the payment server can be implemented by means of computer programs and/or different circuits. The presented payment server 21 is divided into a control block 41 and a code generation block 42. When, for example, the subscriber calls the payment server, the call is directed from the mobile services switching centre MSC to the control block 41. The control block 41 identifies the subscriber and the point of sale and checks from the database DB that the subscriber has a right to use the mobile payment service. If mobile payment is allowed for the subscriber, the code generation block 42 generates a transaction code for the payment transaction. Next, the control block 41 attends to the generated transaction code being transmitted to the subscriber and stored in the database DB. When the subscriber has selected the products and transmitted the transaction code to the payment terminal, the control block 41 receives a payment message from the payment terminal and compares the transaction code of the received message with the stored transaction code. The payment message is transmitted utilizing an existing payment network. If the transaction codes correspond to each other and the transaction code is still valid, the control block 41 accepts the purchase and acknowledges the transaction code as used. Finally, acknowledgements of the payment transaction being accepted are transmitted from the control block 41 to the subscriber and payment terminals. [0031] It will be obvious to a person skilled in the art that with the advance of technology, the basic idea of the invention can be implemented in a plurality of ways. The invention and its embodiments are thus not confined to the above-described examples but can vary within the scope of the claims.

Claims: CLAIMS 1. A method of performing a payment transaction via a mobile network, characterized by transmitting a request from a subscriber terminal (MS) to a payment server (21 ) to obtain a transaction code; identifying a subscriber in the payment server (21); checking from a database (DB) containing subscriber data that the subscriber has a right to pay products via the payment server (21); generating and storing in the database (DB) a one-time transaction code for the payment transaction if the subscriber has a right to pay for products via the payment server (21); transmitting said transaction code to the subscriber terminal (MS); receiving with a payment terminal (22) a transaction code from the subscriber; transmitting a payment message containing the transaction code, the total of the purchase and the identifier of the payment terminal to the payment server (21); comparing in the payment server (21) the transaction code stored in the database (DB) and the payment message received from the payment terminal (22); accepting the purchase if the transaction code in the payment message corresponds to the transaction code stored in the database (DB); acknowledging the transaction code related to the accepted purchase as used in such a way that said transaction code cannot be reused before it is reactivated; and transmitting information on the accepted payment transaction to the payment terminal (22). 2. A method according to claim 1, characterized by further identifying the point of sale selected by the subscriber in the payment server on the basis of the subscriber's request. 3. A method according to claim 1 or 2, characterized by further transmitting information on the accepted payment transaction to the subscriber terminal (MS). 4. A method according to any one of claims 1 to 3, characterized by transmitting said request from the subscriber terminal (MS) to the payment server (21) by calling a service number. 5. A method according to any one of claims 1 to 3, c h a r a c t e i z e d by transmitting said request from the subscriber terminal (MS) to the payment server (21) and/or transmitting the transaction code from the payment server (21 ) to the subscriber terminal (MS) with a message sent between the subscriber terminal (MS) and the payment server (21). 6. A method according to any one of claims 1 to 3, c h a r a c t e r i z e d by transmitting said request from the subscriber terminal (MS) to the payment server (21) and/or transmitting the transaction code from the payment server (21) to the subscriber terminal (MS) by means of a browser application. 7. A payment system for performing a payment transaction via a mobile station network, which network comprises at least a payment server (21) for handling payment transactions, a database (DB) containing subscriber information and being in data transmission connection to the payment server (21 ), a payment terminal (22) for forming a payment transaction, and a wireless terminal (MS) for setting up a connection to the payment server (21), c h a r a c t e r i z e d in that the payment server (21) comprises means (41) for identifying the subscriber on the basis of a transaction code request transmitted from the subscriber terminal (MS); means (41) for checking from the database (DB) containing subscriber information that the subscriber has a right to pay for products via the payment server (21); means (42) for generating a one-time transaction code and for storing it in the database (DB) for a payment transaction if the subscriber has a right to pay for products via the payment server (21); and means (41) for transmitting said transaction code to the subscriber terminal (MS); and that the payment terminal (22) comprises means for receiving the transaction code from the subscriber; and means for transmitting a payment message containing the transaction code, the total of the purchase and the identifier of the payment terminal to the payment server (21); and that the payment server (21) further comprises means (41) to compare the transaction code stored in the database (DB) with the payment message received from the payment terminal (22); means (41) for accepting the purchase if the transaction code in the payment message corresponds to the transaction code stored in the database (DB); means (41) for acknowledging the transaction code related to the accepted purchase as used in such a way that the transaction code cannot be reused before it is reactivated; and means (41) for transmitting information on the accepted payment transaction to the payment terminal (22). 8. A payment system according to claim 7, characterized in that the system further comprises means (41) for identifying the point of sale selected by the subscriber on the basis of the transaction code request transmitted from the subscriber terminal (MS). 9. A payment system according to claim 7 or 8, characterized in that the system further comprises means (41) for transmitting information on the accepted payment transaction to the subscriber terminal (MS). 10. A payment system according to any one of claims 7 to 9, characterized in that the system further comprises a server (WAP), and the subscriber terminal (MS) comprises a browser application, whereby the transaction code request and/or the transaction code can be transmitted between the subscriber terminal (MS) and the payment server (21) via the browser application and the server (WAP). 11. A payment system according to any one of claims 7 to 10, characterized in that the system further comprises a message service centre (SMSC), whereby the transaction code request can be transmitted from the subscriber terminal (MS) to the payment server (21), and/or the transaction code can be transmitted from the payment server (21) to the subscriber terminal (MS) with a message sent between the subscriber terminal (MS) and payment server (21). 12. A payment system according to claim 7 to 11, characterized in that the means of the system for transmitting the transaction code to the subscriber terminal (MS) comprise means for giving the transaction code as a voice message. 13. A system according to claim 7 to 12, characterized in that the payment terminal (22) comprises means for receiving the transaction code from the subscriber electronically. 14. A system according to claim 13, characterized in that the payment terminal (22) comprises means for receiving the transaction code from the subscriber by means of a short-range radio connection. 15. A system according to claim 13, characterized in that the payment terminal (22) comprises means for receiving the transaction code from the subscriber by means of an infrared connection. 16. A payment server of a payment system for handling a payment transaction, characterized in that the payment server comprises means (41) for identifying a subscriber on the basis of a transaction code request transmitted from a subscriber terminal (MS); means (41) for checking from a database (DB) containing subscriber information that the subscriber has a right to pay for products via the payment server (21); means (42) for generating a one-time transaction code and for storing it in the database (DB) for the payment transaction if the subscriber has a right to pay for products via the payment server (21); means (41) for transmitting said transaction code to the subscriber terminal (MS); means (41) for comparing the transaction code stored in the database (DB) with the payment message received from the payment terminal (22); means (41) for accepting the purchase if the transaction code in the payment message corresponds to the transaction code stored in the database (DB); means (41) for acknowledging the transaction code related to the accepted purchase as used in such a way that the transaction code cannot be reused before it is reactivated; and means (41) for transmitting information on the accepted payment transaction to the payment terminal. 17. A payment server according to claim 16, characterized in that the payment server further comprises means (41) for identifying the point of sale selected by the subscriber on the basis of the transaction code request transmitted from the subscriber terminal (MS). 18. A payment server according to claim 16 or 17, characterized in that the payment server further comprises means (41) for transmitting information on the accepted payment transaction to the subscriber terminal (MS).

Inventors: AERMAENEN MATTI, KARVINEN ANSSI, LAUKKANEN ARI, LEHTONEN TERO, MCARDLE GAVIN, WELIN OLLI, AERMAENEN, MATTI, KARVINEN, ANSSI, LAUKKANEN, ARI, LEHTONEN, TERO, MCARDLE, GAVIN, WELIN, OLLI
Applicants: AERMAENEN MATTI, KARVINEN ANSSI, LAUKKANEN ARI, LEHTONEN TERO, MCARDLE GAVIN, SONERA OYJ, WELIN OLLI, AERMAENEN, MATTI, KARVINEN, ANSSI, LAUKKANEN, ARI, LEHTONEN, TERO, MCARDLE, GAVIN, WELIN, OLLI
Application year: 2001
Main classification: G06F17
IPC codes: G06Q20, G06Q30, G07F7