Abstract:
A reconfigurable digital wallet device such as a smart card containing a secure element and acting as an instantiation of a subset of a virtual wallet stored in the cloud. The digital wallet device is managed and synchronized with the virtual wallet in the cloud using a mobile device such as a smartphone.

Description:
[0001]    The current developments in mobile payments is leading to the dematerialization of smart cards (e.g. credit cards) into a virtual wallet which is typically made possible at an electronic transaction terminal such as the point of sale (POS) by, for example, a Near Field Communication (NFC) enabled phone. For secure and efficient use, a Secure Element (SE) is typically needed in the mobile phone to house a mobile wallet. If the mobile phone does not have a secure element, secure online connectivity to a cloud is typically required for transactions using a virtual wallet stored in a cloud. The cloud is defined to be a communications network such as, for example, the Internet. Mobile phones typically do not have ISO7816 (international standard related to electronic identification cards with contacts) connectivity so that mobile phones need to be equipped with, for example, NFC capability and additionally there needs to be NFC transaction terminal capability. NFC transaction terminal capability typically requires significant additional investment by the merchant and during the transition away from a smart card to the virtual wallet using NFC, a merchant and the card issuer will typically need to support both solutions (virtual and physical cards). 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0002]      FIG. 1   a  shows an embodiment in accordance with the invention. 
           [0003]      FIG. 1   b  shows an embodiment in accordance with the invention. 
           [0004]      FIG. 1   c  shows an embodiment in accordance with the invention 
           [0005]      FIG. 2   a  shows an embodiment in accordance with the invention. 
           [0006]      FIG. 2   b  shows an embodiment in accordance with the invention. 
           [0007]      FIG. 3   a  shows a secure element in accordance with the invention. 
           [0008]      FIG. 3   b  shows a secure element in accordance with the invention. 
           [0009]      FIG. 4  shows an embodiment in accordance with the invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0010]    In an embodiment in accordance with the invention, the virtual wallet is “rematerialized” by using a digital wallet device, for example, a smart card in its well-known ISO7816 shape while maintaining the flexibility offered by the mobile payment scheme. This “rematerialization” is accomplished by pairing the smart card with a virtual wallet stored in a cloud using a mobile device, typically a smartphone or other mobile phone that offers connectivity to the cloud. The digital wallet device becomes an instantiation of a subset of the virtual wallet stored in the cloud. In an embodiment in accordance with the invention, this allows the smart card to be controlled by the smartphone while still allowing the smart card to be used autonomously at a transaction terminal with either ISO7816 (contact smart card) connectivity or ISO14443 (NFC connectivity) connectivity. In accordance with the invention, the smart card acts as a bridge between incompatible technologies such as, for example, ISO7816 capable points of sale and NFC phones or NFC points of sale and BLUETOOTH Low Energy enabled smart phones. 
         [0011]    Due to the reconfigurability of the smart card, only one smart card is needed to replace a physical wallet of cards. In an embodiment accordance with the invention, to install a new card on the smart card, a smartphone and a smart card need to communicate with each other, a secure channel needs to be established between the secure element of the smart card and the cloud using the smart phone and the new applet representing the new card that is to be installed needs to be transferred from the cloud to the secure element of the smart card. If the smartphone optionally also includes a secure element which can store the applet, the applet may be transferred from the smartphone to the smart card after mutual authentication and the establishment of a secure channel between the smartphone and the smart card. 
         [0012]    The connectivity between a mobile phone and a smart card can be based on various technologies as long the connectivity is compliant with existing short distance wireless standards and is low power. Possibilities in accordance with the invention include Bluetooth Low Energy, NFC or a wired connection, for example, via a mobile phone&#39;s audio jack. The mobile phone may communicate with the cloud using, for example, WiFi, 3G or 4G. 
         [0013]    A requirement for the smart card to be used autonomously at the transaction terminal is the incorporation of a secure element into the smart card. A secure element may also be incorporated into the smartphone, depending on the connectivity to the cloud and the flexibility that is desired but in accordance with the invention this is not a requirement as the smart card functions as a secure element external to the smartphone. In some embodiments in accordance with the invention, a visual indicator or display such as an e-ink, LED or OLED display may be added to the smart card and a battery or capacitor may be incorporated in the smart card to provide power. There is also the option of using an external dongle connected to, for example, the audio, USB or other powered port of a smart phone to provide power to the smart card. 
         [0014]      FIG. 1   a  shows system  10  in an embodiment in accordance with the invention. System  10  includes cloud  20 , wireless enabled mobile device  30 , transaction terminal  50  along with digital wallet device  40  which has wireless connectivity with mobile device  30 . Wireless enabled mobile device also has wireless connectivity with cloud  20 . The user has wireless enabled mobile device  30  and can use their virtual wallet stored in cloud  20  at locations having transaction terminal  50  by using digital wallet device  40 . Transaction terminal  50  may have contact as well as contactless connectivity with digital wallet device  40 . In accordance with the invention, the user has one digital wallet device  40  typically provided by their virtual wallet provider which may be pre-personalized for immediate use and which is or can be paired with the user&#39;s virtual wallet stored in cloud  20 . Pre-personalization means that the initial card configuration or applet is pre-loaded in digital wallet device  40  so the user can immediately use the card configuration or applet without first having to perform a first pairing and transfer a new card applet to digital wallet device  40 . Digital wallet device  40  is configured by the user using wireless enabled mobile device  30 . The configuration information is stored in secure elements  210  or  310  (e.g. see  FIGS. 3   a,    3   b ) of digital wallet device  40 . For example, new cards such as bank cards, access cards or loyalty cards from the user&#39;s virtual wallet may be installed on digital wallet device  40  using wireless enabled mobile device  30  and a specific bank card may be selected for the next payment using wireless enabled mobile device  30 . Installation is similar to the prior art where the virtual wallet owner can download a new applet to the secure element of a smartphone but in accordance with the invention, the download is to secure element  210  or  310  (e.g. see  FIGS. 3   a,    3   b ) of digital wallet device  40 . Optionally, digital wallet device  40  may include display  115  for displaying configuration and transaction information. 
         [0015]      FIG. 1   b  shows system  100  in an embodiment in accordance with the invention. System  100  includes NFC enabled smartphone  110 , contact reader  130  and NFC reader  140  along with smart card  120  which may both be part of a transaction terminal  50  (see  FIG. 1   a ). The user has NFC enabled smartphone  110  and can use their virtual wallet at merchant locations having contact reader  130  as well as at merchant locations having NFC reader  140  by using smart card  120 . In an embodiment in accordance with the invention, the user has one physical smart card  120  provided by their virtual wallet provider which may be pre-personalized so that it can be immediately used as a regular bank card and which is or can be paired with the user&#39;s virtual wallet stored in cloud  10  (see  FIG. 1   a ). Pre-personalization means that the initial card configuration or applet is pre-loaded in physical smart card  120  so the user can immediately use the card without first having to perform a first pairing and transfer a new card applet to smart card  120 . The pairing operation is described in more detail below. Smart card  120  is configured by the user with NFC enabled smartphone  110  to reflect a subset of the user&#39;s virtual wallet. The configuration information is stored in secure element  210  (see  FIG. 2   a ) of smart card  120 . For example, new cards such as bank cards or loyalty cards from the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ) may be installed on smart card  120  using NFC enabled smartphone  110  and a specific bank card may be selected for the next payment using NFC enabled smartphone  110 . Installation is similar to the prior art where the virtual wallet owner can download a new applet to the secure element of a smartphone but in accordance with the invention, the download is to secure element  210  (see  FIG. 2   a ) of smart card  120 . If smart card  120  has optional display  115 , for example, display  115  is an e-ink screen, smart card  120  can display the current configuration to the user. This serves to inform the user as to which card will be emulated by smart card  120  in the next transaction. Display  115  may also be used to show transaction information to the user. 
         [0016]      FIG. 1   c  shows system  150  in an embodiment in accordance with the invention. System  150  includes Bluetooth Low Energy (BLE) enabled smartphone  155 , contact reader  130  and NFC reader  140  which may be part of a transaction terminal  50  (see  FIG. 1   a ) along with smart card  160 . Note that smart card  160  is BLE enabled (BLE operates as a radiative field) in the embodiment and therefore smart card  160  typically requires a power source. The user has BLE enabled smartphone  155  and can use their virtual wallet stored in cloud  20  (see  FIG. 1   a ) at merchant locations having contact reader  130  as well as at merchant locations having NFC reader  140  by using smart card  160 . In accordance with the invention, the user has one physical smart card  160  typically provided by their virtual wallet provider. Smart card  160  may be pre-personalized so that it can be immediately used as a regular bank card and which is or can be paired with the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ). 
         [0017]    If small powering device  165  provides power to smart card  160 , smart card  160  may be configured by the user with BLE enabled smartphone  110  to, for example, reflect a subset of the user&#39;s virtual wallet. Powering device  165  may be a small dongle connected to smartphone  160  via the audio, USB or APPLE LIGHTENING port or powering device  165  may be or a rechargeable battery or capacitor internal to smart card  160 . If powering device  165  is a small dongle connected to smartphone  155 , powering device  165  either has an ISO7816 (contact) interface or an ISO14443 (NFC) interface through which to provide power to smart card  160 . Power is transmitted to smart card  160  using ISO7816 contacts  220  or using NFC coil  240  (see  FIG. 2   b ). The configuration information is stored in secure element  210  (see  FIG. 2   b ) of smart card  160 . For example, new cards such as bankcards or loyalty cards from the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ) may be installed on smart card  160  using BLE enabled smartphone  155 . A specific bankcard may be selected for the next payments by the user using BLE enabled smartphone  155 . For example, if smart card  160  has optional display  115  which is typically an e-ink screen that requires power to change the display content but typically retains the existing display content even without power for several weeks, smart card  160  can display the current configuration to the user. Current configuration information typically includes identification of the card applet that is currently active (e.g. customized card names like MyVISA and/or credit card numbers). This serves to inform the user as to which card will be emulated by smart card  160  in the next transaction. 
         [0018]      FIG. 2   a  shows digital wallet device  40  or smart card  120  in an embodiment in accordance with the invention. Smart card  120  includes secure element  210  connected to optional display  115 , such as an e-ink display, to Contactless Interface Unit (CIU) (ISO14443)  230  and to Universal Asynchronous Receiver/Transmitter (UART) (ISO7816)  245 . CIU  230  is also connected to NFC coil  240  and UART  245  is also connected to ISO7816 contacts  220 . 
         [0019]      FIG. 2   b  shows digital wallet device  40  or smart card  160  in an embodiment in accordance with the invention. Smart card  160  includes secure element  210  connected to optional display  115 , such as an e-ink display, Contactless Interface Unit (CIU) (ISO14443)  230 , BLE chip  265  and Universal Asynchronous Receiver/Transmitter (UART) (ISO7816)  245 . CIU  230  is also connected to NFC coil  240  and UART  245  is also connected to ISO7816 contacts  220 . BLE chip  265  is also connected to BLE antenna  260 . 
         [0020]      FIG. 3   a  shows a typical embodiment in accordance with the invention for secure element  210  of digital wallet device  40  or smart card  120  in accordance with the invention. Secure element  210  includes CPU  315  connected to nonvolatile memory  320 , cryptographic cores  345 , security sensors  335 , random access memory  325 , optional display interface  350 , ISO7816 contact interface  330  and ISO14443 contactless (NFC) interface  340 . A flexible operating system, typically JAVA Card OS or an application running on CPU  315  allows for a number of operations to be performed between smartphone  110  and smart card  120 . Programs or data may be uploaded or removed from smart card  120  so that smart card  120  may operate as, for example, a bankcard, a loyalty card, an access control card or a transit card. One card or a subset of cards may be selected to be active on smart card  120 . Optional display interface  350  allows the user to see what configuration is currently active on smart card  120 . 
         [0021]      FIG. 3   b  shows a typical embodiment in accordance with the invention for secure element  310  of digital wallet device  40  or smart card  160  which is enabled for BLUETOOTH Low Energy (BLE) in accordance with the invention. Secure element  310  includes CPU  315  connected to nonvolatile memory  320 , cryptographic cores  345 , security sensors  335 , random access memory  325 , optional display interface  350 , BLE interface  360 , ISO7816 contact interface  330  and ISO14443 contactless (NFC) interface  340 . A flexible operating system or application running on CPU  315  allows for a number of operations to be performed between smartphone  155  and smart card  160 . Programs or data may be uploaded or removed from smart card  160  so that smart card  160  may operate as a bankcard, a loyalty card or a transit card, for example. One card or a subset of cards may be selected to be active on smart card  160 . Optional display interface  350  allows the user to see what configuration is currently active on smart card  160 . 
         [0022]    In the event that the smart card and the smartphone do not share a suitable wireless communication channel, for example, where smartphone  155  has BLE connectivity and smart card  120  has NFC connectivity, an accessory device such as NFC dongle  410  may be attached to smartphone  155  in accordance with the invention to communicate with smart card  120  as shown in  FIG. 4 . In this example, smart card  120  has an NFC channel and ISO7816 contact connectivity so the accessory device in the form of dongle  410  provides NFC connectivity as shown (similar to ICARTE which can convert some smart phones into NFC phones) or ISO7816 contact connectivity may be provided from smartphone  155  using a dongle similar to IZETTLE which is a plug-in contact smart card reader available for a variety of smartphones. The accessory device such as dongle  410  is typically physically connected to smartphone  155  via an audio port (with audio modem), USB port or APPLE LIGHTENING port. Other types of ports may also be used. If the chosen connectivity cannot provide power to smart card  160 , for example, if smart card  160  is only BLE or WiFi enabled, then power needs to be supplied to smart card  160  using the methods described above. If the transaction terminal  130 ,  140  only supports NFC, ISO7816 connectivity is not required in smart card  120  which means the smart card form factor is not required and smart card  120  and the accessory device could be combined into a single object in accordance with the invention. 
         [0023]    For pairing smart card  120  or  160  with the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ), a secure scheme must be designed to bootstrap the security. As noted above, a physical smart card such as smart card  120  or  160  may be pre-personalized by the virtual wallet provider in accordance with the invention. A shared secret may be set up between the virtual wallet and the physical smart card and/or the smart card authenticates the user&#39;s virtual wallet and the user&#39;s virtual wallet authenticates the physical smart card. Note that the pre-personalization scheme does not require a secure communication channel if the pre-personalization is performed in a secure environment (protected from man in the middle attacks and eavesdropping etc.). Pre-personalization may be performed by authorized retailers. 
         [0024]    Another option is using branded smart cards  120  or  160  that are linked to the issuer. In this case, smart card  120  or  160  is not yet linked to the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ) but is able to authenticate the issuer during the pairing operation in the field. Branded smart cards  120  or  160  could be sold in stores and the user would then pair smart card  120  or  160  with the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ). Such pairing needs to be performed in a secure way to prevent eavesdropping and man in the middle attacks. An originality check can be added to smart card  120  or  160  so that the branded smart card issuer can verify that smart card  120  or  160  is genuine and not counterfeit. 
         [0025]    For example, a user may buy smart card  120  or  160  and use smartphone  110  or  155 , respectively, to pair smart card  120  or  160  with their virtual wallet stored in cloud  20  (see  FIG. 1   a ). Smart card  120  or  160  and the virtual wallet stored in cloud  20  (see  FIG. 1   a ) recognize each other as authentic and create a secure channel. Subsequently, the smart card public key is registered with the user&#39;s virtual wallet stored in cloud  20  (see  FIG. 1   a ) or a secret is sent from the virtual wallet stored in cloud  20  (see  FIG. 1   a ) to smart card  120  or  160  using the user&#39;s smartphone  110  or  155 . The pairing process may be facilitated if a preconfigured key such as a serial number is written on smart card  120  or  160  and entered by the user into smartphone  110  or  155  or scanned if a quick response code is used and there is a scanning capability. Note that if BLE is used as for smartphone  155 , a specific BLUETOOTH Smart pairing needs to occur between smartphone  155  and smartcard  160  (see  FIG. 1   b ). 
         [0026]    Typically, in accordance with the invention, the virtual wallet is stored in the cloud  20  (see  FIG. 1   a ) but in the event that a smartphone includes a secure element, a mobile wallet can be configured in the smartphones&#39;s secure element. In that case the pairing operation occurs between the smart card and a mobile wallet that is configured in the secure element of the smartphone. 
         [0027]    Once smart card  120  or  160  and the virtual wallet stored in cloud  20  (see  FIG. 1   a ) (or mobile wallet if the smartphone is secure element equipped, for example) are paired, an authenticated and encrypted communication channel can be readily set up by smart card  120  or  160  and the virtual wallet. 
         [0028]    In order to allow for the smart card reconfiguration described above, smart card  120  or  160  must support a number of operations such as uploading and removing programs or data so that smart card  120  and  160  may operate as a variety of cards such as a bankcard, a loyalty card, access card or a transit card, for example. Additionally, it needs to be possible to deselect or select one or more of the cards that are to be activated in smartcard  120  or  160 ; set or change the priorities among the cards contained in smartcard  120  or  160 ; and set or change the information displayed on optional display  115  for smart card  120  or  160 . Smart card  120  or  160  may also support additional operations such as maintaining transaction logs during use with the transaction terminal and these logs may be later cleared by the virtual wallet stored in cloud  20  (see  FIG. 1   a ) or smart phone  110  or  155 . 
         [0029]    Prior art methods that use smartphones with secure elements to do eBanking or eCommerce can be extended for use in accordance with the invention by allowing a mobile device or smartphone without a secure element to perform the same functions when used together with a digital wallet device or smart card. Because communication between smartphone  120  or  160  and secure element  210  or  310 , respectively, is now outside of smartphone  120  or  160 , mutual authentication and encrypted communications are required as noted above.