Abstract:
A server, with access to information about the spending of consumers, is operative to register when any of the consumers develops a new payment channel which is not tracked by a payment network. In respect of such consumers, the server automatically analyses the tracked spending behavior of the consumers before and after the new spending channel is opened, to identify differences between the spending behavior before and afterwards. By aggregating this information among multiple consumers, and multiple merchant classes, the server obtains data characterizing consumer spending using the new payment channel.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
       [0001]    This application claims foreign priority to Singapore Application 10201604422U filed Jun. 1, 2016, the complete disclosure of which is expressly incorporated by reference herein in its entirety for all purposes. 
       BACKGROUND OF THE INVENTION 
       [0002]    The present invention relates to methods, devices and software for collecting information about consumer spending, particularly consumers who use a mobile wallet application. 
         [0003]    Payment cards used by individuals (here “consumers”) are conventionally associated with a payment network.  FIG. 1  shows the basic operation of a conventional system. A consumer holds a payment card, typically a credit or debit card, issued by an issuer bank. The consumer goes to a POS (point-of-sales) terminal  1  operated to a merchant to make a purchase of a product. Note that the term “product” is used in this document to include any of physical objects, data products (such as music or software) or services. The POS terminal  1  reads the details of the payment card, and sends them, together with data including the amount of the purchase, to the server  3  of an acquirer bank at which the merchant maintains an account. The acquirer bank server  3  contacts a payment network server  5  of the payment network, and passes on the payment card details and the amount of the purchase. The payment network server  5  uses the payment card details to identify the issuer bank. The payment network server  5  contacts an issuer bank server  7  operated by the issuer bank, and sends it the payment card details and the amount of the purchase. The issuer bank server  7  decides either to authorize the purchase, or not to, and sends a corresponding message to the payment network server  5 . The payment network server passes this information to the acquirer bank server  3 , which passes the message back to the POS terminal  1 . If the issuer bank server  7  authorized the transaction, then the purchase is now completed. At some later time (during clearing and settlement operations), the issuer bank transfers the payment amount to the acquirer bank. 
         [0004]    The same basic scheme is used when the consumer, instead of using the POS terminal  1 , uses a communication device  9  associated with the consumer to contact, using a communication network  11 , a server  13  which functions as an online store. The communication device may be a smart phone, a tablet computer or a PC. In this case, the online store server  13  replaces the POS terminal  1  in the payment process described in the preceding paragraph. The consumer enters the payment card details into the communication device  9 , or they may be pre-stored there. 
         [0005]    Both situations described above give the payment network server  5  opportunities to collect valuable information about the spending habits of consumers. The payment transactions are recorded in a transaction database  10 , and analyzed by an analysis computer system (which may be the payment network server  5  itself, but may alternatively be a separate computer system), typically after a certain amount of information in respect of each payment card has accumulated. For example, the payment network server  5  can determine that a certain consumer makes payments in a certain geographical region, from certain merchants, at certain times. Various mechanisms exist to enrich the information gathering procedure, for example using information the payment network server  5  receives about the consumer from the issuing bank server  7 . 
       BRIEF SUMMARY OF THE INVENTION 
       [0006]    The disclosure is based on the realization that the conventional payment card payment process is evolving in a manner which means that for certain consumers the payment network may no longer able to collect as much information as is currently the case. 
         [0007]    In general terms the disclosure proposes that an analysis server (which may be a payment card network server but may also be a separate computer system, typically operated by the same payment network), which has access to information about the spending of a certain consumer, is operative to determine when the consumer has taken an action which is indicative of the consumer having developed a new payment channel which is not tracked by the payment network. In respect of such consumers, the analysis server automatically analyses the tracked spending behavior of the consumer before and after the consumer took this action, to identify differences between the spending behavior before and afterwards. By aggregating this information among multiple consumers, the analysis server obtains data characterizing consumer spending using the new payment channel. 
         [0008]    The new spending channel may be a “mobile wallet” facility produced by a software application running on the consumer&#39;s communication device. In this case, the consumer has an account with a company (“mobile wallet company”) which operates the mobile wallet application. The consumer can use a payment card to make an initial payment to the company to produce a positive balance the account (“charges” the account), and periodic payments to top-up the account (“recharges” the account). So long as the account has a positive balance, the application interacts with POS terminals and/or online stores to make payments using the account. This may be by electronic or wireless interactions between the communication device and a POS terminal or an online store. When consumer makes a purchase from the POS terminal or the online store operated by a merchant, the mobile wallet account is debited, and the “mobile wallet” company arranges a corresponding payment to a merchant. This payment may be carried out later, as part of a clearing operation dealing with payments from many consumers. The payments may not involve the payment network server, so the payment network is not able to track them directly. Even if the payment network server is involved, it may not be able to able to obtain directly information of the transactions of the individual consumers. 
         [0009]    However, by using the systems and methods detailed in the present disclosure, the payment network can infer statistical properties of the payments multiple consumers make using mobile wallets. 
         [0010]    Preferably, the analysis of the tracked spending behavior of the consumers before and after the payment system has registered the new spending channel, is performed in respect of a plurality of merchant classes, with at least some of the merchant classes being defined as merchants in a certain commercial sector. In this way, the analysis should not be influenced by consumers switching their spending between merchants in the same commercial sector. 
         [0011]    The action which alerts the payment network to the fact that the consumer is using a mobile wallet as a new payment channel may be the first payment the consumer makes using the payment card to an account associated with the mobile wallet company. Alternatively, the payment network may determine whether, in respect of a given payment card, one or more criteria relating to payments to the mobile wallet company are met, such whether a certain number of payments is made to the mobile wallet company&#39;s account(s) during a certain period, and/or whether the total payment to the mobile wallet company&#39;s account(s) is above a threshold. 
         [0012]    All steps of the method are preferably performed automatically. The term “automatic” is used in this document to refer to a process which is performed substantially without human involvement, save possibly for initiation of the process. 
         [0013]    As used in this document, the term “payment card” refers to any cashless payment device associated with a payment account, such as a credit card, a debit card, a prepaid card, a charge card, a membership card, a promotional card, a frequent flyer card, an identification card, a prepaid card, a gift card, and/or any other device that may hold payment account information, such as mobile phones, Smartphones, personal digital assistants (PDAs), key fobs, transponder devices, NFC-enabled devices, and/or computers. 
         [0014]    It will be appreciated that the method detailed in the present disclosure may be embodied as the server which performs the method. 
     
    
     
       BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS 
         [0015]    An embodiment will now be described for the sake of example only with reference to the following drawings, in which: 
           [0016]      FIG. 1  shows schematically a conventional computerized network for performing a payment process using a payment card; 
           [0017]      FIG. 2  shows schematically a computerized network which is suitable to perform a method according to the present disclosure; 
           [0018]      FIG. 3  is a flow diagram of a method which is invention method according to the present disclosure; and 
           [0019]      FIG. 4  shows the technical architecture of a payment network server of the computerized network of  FIG. 1 . 
       
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
       [0020]    Referring firstly to  FIG. 2 , a computerized network is shown which is suitable for performing a method illustrated in  FIG. 3 . Many of the elements of  FIG. 2  are as in the known system of  FIG. 1 , and are designated here by the same reference numerals. 
         [0021]    In contrast with the computerized network of  FIG. 1 , the computerized network of  FIG. 2  includes a server  2  associated with a mobile wallet company which operates a mobile wallet service. The server  2  is termed here a mobile wallet server. The mobile wallet company maintains a payment account at a financial organization (e.g. a bank) which operates a server  4 . Note that this may be the same financial organization at which a payment account is maintained the merchant which operates the POS terminal  1  or online store  13 . In other words, servers  3  and  4  may be the same. In a variation of this scheme, the servers  2  and  4  may be integrated into one, for example if the mobile wallet company is a bank. 
         [0022]    The consumer uses the communication device  9  to communicate with the server  2  over the communication network  11 . Initially, the consumer downloads an application from the server  2  into the communication device  9 . Using the application, the consumer sets up a payment account with the mobile wallet company. The payment account is termed a “mobile wallet”. The consumer enters details of the consumer&#39;s payment card into the application, and instructs the application to transfer some money into the mobile wallet. 
         [0023]    At this stage, the mobile wallet server  2  contacts the server  4  of the bank where it maintains an account, and the server  4  contacts the payment network server  5  to arrange for a payment to be made to the mobile wallet company&#39;s account from the consumer&#39;s account at the issuer bank. 
         [0024]    The payment network server  5  then commences the method  100  shown in  FIG. 3 . It is to be understood that  FIG. 3  shows only steps which are different as between the system of  FIG. 1  and  FIG. 2 . For example, the conventional steps the payment network server  5  performs to processing payments to the POS terminal  1  or the online store  13  using the payment card, are not shown. These conventional steps may be interleaved with the steps shown in  FIG. 3 . 
         [0025]    In step  101 , the payment network server  5  registers the fact that, in respect of the consumer&#39;s payment card, it has been instructed to make a payment to the mobile server&#39;s account. The data received by the payment network server  5  typically includes the identity of the recipient of the payment, so the payment network has sufficient information to do this. It enters this information into a wallet transaction database  6 . 
         [0026]    In step  102 , the payment server contacts the server  7  of the issuer bank, to obtain an authorization of the transaction. The issuer banks makes a decision, and transmits a message to the payment network  5 , which forwards it to the server  4 , which in turn forwards it to the server  2 . 
         [0027]    If the decision is positive, the server  4  credits the amount to the account of the mobile wallet company, and the mobile wallet company credits it to the mobile wallet (optionally, less a handling charge). At a subsequent time (possibly during a clearing operation) a payment will be made from the issuer bank to the bank associated with the server  4 . 
         [0028]    The consumer can now make purchases from the mobile wallet to POS terminals such as the POS terminal  1 , and/or to online stores such as the online store  13 . The payments are managed by the server  2 , possibly via private arrangements between the mobile wallet company and the merchant(s) operating the POS terminals and the online stores. Even if these payments involve a payment network, it may not be the payment network associated with the payment network server  5 . Furthermore, typically the messages relayed by a payment network between the mobile wallet company and the merchants do not contain information sufficient to identity the consumer. Thus, the payment network server  5  has no direct method of tracking the consumer&#39;s spending using the mobile wallet. 
         [0029]    A consumer who makes active use of his or her mobile wallet, will have to recharge the mobile wallet periodically. That is, steps  101  and  102  will have to be repeated. Each time step  101  is repeated, an additional entry in respect of the payment card is made in the wallet transaction database  6 . 
         [0030]    In step  103 , the payment network server  5  identifies the payment cards for which the activity recorded in the wallet transaction database  6  meets one or more criteria. This indicates the mobile wallet of the corresponding consumer is active (e.g. frequently used). For example, one criterion may be payment cards for which the number of recharging operations is above a threshold. Another possible criterion is whether the total sum transferred to the mobile wallet is above a threshold. Another possible criterion may be based on the regularity of the re-charging steps. The payment cards which met the one or more criteria are identified by the payment network server  5  as “active”. 
         [0031]    Of course, the consumer may still continue to use the active payment card for certain purchases, and in respect of these transactions the payment network server will continue to record details. The payment transactions which are performed after the payment card is identified as active are referred to as “subsequent transactions”; by contrast, the transactions recorded in the prior transaction database  12  before the payment card is identified as active are referred to as “prior transactions”. The subsequent transactions are recorded in a subsequent transaction database  8  (step  105 ). In a variation of the embodiment, the subsequent transactions for the payment card may continue to be recorded in the prior transaction database  12 . 
         [0032]    After a certain time has passed (e.g. 3 months), in step  104  the payment network server  5  compares the subsequent transactions for each active payment card with its prior transactions, and generates difference data characterizing the differences between the prior transactions and the subsequent transactions. For example, the payment transactions to certain merchant classes (e.g. taxi providers or coffee shops) may have ceased, and payments to other merchant classes may have decreased. Some of these differences are due to the consumer having started to make purchases using the mobile wallet, which do not show up in the subsequent transaction database  8 . Other of the differences, of course, may be for other reasons, such as random differences in the consumer&#39;s spending patterns over time. 
         [0033]    Optionally, the prior transactions used in the analysis may be limited to transactions in a certain time window (e.g. 3 months) before the entry was made in the wallet transaction database  6 . In other words, step  106  may be comparing two 3 month periods. In variations of the method, either of these two periods may be of different lengths (e.g. any time in the range 3 to 6 months). 
         [0034]    In step  105 , the payment network server  5  combines statistically the difference data in respect of many of the consumers, to generate aggregated difference data in respect of the merchant classes. The aggregated difference data is indicative of correlations in the difference data for different customers. For example, if it is determined that for 40% of the active payment cards for which the prior transactions include payments to merchants in a certain class, the subsequent transactions do not include a payment to merchants in the class, then it may be inferred that 40% of the consumers with mobile wallets are now using the mobile wallet to make the transactions to merchants of that class. The step of aggregating the data over the large number of consumers very much reduces components of the difference data which are due to random differences in the spending patterns of individual consumers. 
         [0035]    Note that steps  106  and  107  may be performed in other ways in different embodiment of the invention. For example, instead of working out the differences between the prior transactions and the subsequent transactions for individual consumers (i.e. step  106 ), the prior transactions for multiple consumers may be aggregated and the subsequent transactions for multiple consumers may be aggregated, and then the aggregated prior transactions may be compared to the aggregated subsequent transactions. 
         [0036]    Many more sophisticated versions of this analysis are possible taking into account any additional information which may be available. For example, if demographic data is available in a demographic database, an embodiment of the invention may use it to segment the cardholders who are determined to have begun to use a mobile wallet into smaller groups prior to comparing their spend before and after they began to use the mobile wallet. This can make the embodiment more robust. In another example, a card database may be provided specifying that certain consumers have multiple payment cards associated with the payment network, and optionally once a certain payment card has been labelled as active all the consumer&#39;s other payment cards are labelled in the same way. Then, the data for all that consumer&#39;s payment cards may be aggregated in step  104 . 
         [0037]      FIG. 4  is a block diagram showing a technical architecture of the server  5 . 
         [0038]    The technical architecture includes a processor  222  (which may be referred to as a central processor unit or CPU) that is in communication with memory devices including secondary storage  224  (such as disk drives), read only memory (ROM)  226 , random access memory (RAM)  228 . The processor  222  may be implemented as one or more CPU chips. The technical architecture may further comprise input/output (I/O) devices  230 , and network connectivity devices  232 . 
         [0039]    The secondary storage  224  is typically comprised of one or more disk drives or tape drives and is used for non-volatile storage of data and as an over-flow data storage device if RAM  228  is not large enough to hold all working data. Secondary storage  224  may be used to store programs which are loaded into RAM  228  when such programs are selected for execution. 
         [0040]    In this embodiment, the secondary storage  224  has a processing component  224   a  comprising non-transitory instructions operative by the processor  222  to perform various operations of the method of the present disclosure. The ROM  226  is used to store instructions and perhaps data which are read during program execution. The secondary storage  224 , the RAM  228 , and/or the ROM  226  may be referred to in some contexts as computer readable storage media and/or non-transitory computer readable media. 
         [0041]    I/O devices  230  may include printers, video monitors, liquid crystal displays (LCDs), plasma displays, touch screen displays, keyboards, keypads, switches, dials, mice, track balls, voice recognizers, card readers, paper tape readers, or other well-known input devices. 
         [0042]    The network connectivity devices  232  may take the form of modems, modem banks, Ethernet cards, universal serial bus (USB) interface cards, serial interfaces, token ring cards, fiber distributed data interface (FDDI) cards, wireless local area network (WLAN) cards, radio transceiver cards that promote radio communications using protocols such as code division multiple access (CDMA), global system for mobile communications (GSM), long-term evolution (LTE), worldwide interoperability for microwave access (WiMAX), near field communications (NFC), radio frequency identity (RFID), and/or other air interface protocol radio transceiver cards, and other well-known network devices. These network connectivity devices  232  may enable the processor  222  to communicate with the Internet or one or more intranets. With such a network connection, it is contemplated that the processor  222  might receive information from the network, or might output information to the network in the course of performing the above-described method operations. Such information, which is often represented as a sequence of instructions to be executed using processor  222 , may be received from and outputted to the network, for example, in the form of a computer data signal embodied in a carrier wave. 
         [0043]    The processor  222  executes instructions, codes, computer programs, scripts which it accesses from hard disk, floppy disk, optical disk (these various disk based systems may all be considered secondary storage  224 ), flash drive, ROM  226 , RAM  228 , or the network connectivity devices  232 . While only one processor  222  is shown, multiple processors may be present. Thus, while instructions may be discussed as executed by a processor, the instructions may be executed simultaneously, serially, or otherwise executed by one or multiple processors. 
         [0044]    Although the technical architecture is described with reference to a computer, it should be appreciated that the technical architecture may be formed by two or more computers in communication with each other that collaborate to perform a task. For example, but not by way of limitation, an application may be partitioned in such a way as to permit concurrent and/or parallel processing of the instructions of the application. Alternatively, the data processed by the application may be partitioned in such a way as to permit concurrent and/or parallel processing of different portions of a data set by the two or more computers. In an embodiment, virtualization software may be employed by the technical architecture  220  to provide the functionality of a number of servers that is not directly bound to the number of computers in the technical architecture  220 . In an embodiment, the functionality disclosed above may be provided by executing the application and/or applications in a cloud computing environment. Cloud computing may comprise providing computing services via a network connection using dynamically scalable computing resources. A cloud computing environment may be established by an enterprise and/or may be hired on an as-needed basis from a third party provider. 
         [0045]    It is understood that by programming and/or loading executable instructions onto the technical architecture, at least one of the CPU  222 , the RAM  228 , and the ROM  226  are changed, transforming the technical architecture in part into a specific purpose machine or apparatus having the novel functionality taught by the present disclosure. It is fundamental to the electrical engineering and software engineering arts that functionality that can be implemented by loading executable software into a computer can be converted to a hardware implementation by well-known design rules. 
         [0046]    Whilst the foregoing description has described exemplary embodiments, it will be understood by those skilled in the art that many variations of the embodiment can be made within the scope and spirit of the present invention. 
         [0047]    For example, although in the description above the method of  FIG. 3  is performed by the payment server  5 , in a variation of the embodiment some or all of the steps may be performed by a separate computer system, typically one operated by the same payment network as the payment server  5 . For example, the payment network server may have the known structure of  FIG. 1  and operate in the conventional way described above, and a separate analysis server may be provided to screen the data in the transaction database  10  of  FIG. 1  to identify payments made to mobile wallets (i.e. perform step  101 ), and thereby populate a wallet transaction database equivalent to the wallet transaction database  6  of  FIG. 2 . The analysis server may then use the data in the transaction database  10  to perform steps  103 - 105  of the method of  FIG. 3 . The analysis server may have the same technical architecture as that shown in  FIG. 4 . 
         [0048]    In a further variation, the payment server  5  may perform steps  101  and  102  of the method of  FIG. 3  as described above, thereby generating the database  6 , but the analysis server may perform steps  103 - 105 . Thus, the two payment server  5  and analysis server operate together as a single server, to perform collectively the steps of the method of  FIG. 3 .