Patent ID: 8467807

Claim:
A method for distributing a location aware mobile coupon (LAMC) based on a current location of a consumer using a mobile device, comprising: receiving the current location of the mobile device from a location aware service (LAS) provider; comparing, by a processor, the current location of the mobile device to a retail location of a merchant to determine that the consumer is in proximity to the retail location of the merchant; obtaining pre-generated LAMC terms of the merchant specifying a maximum price discount of an item offered by the merchant; determining, by the processor and in response to determining that the consumer is in proximity to the retail location, a non-zero price discount of the LAMC using a pre-determined formula based on the maximum price discount, wherein the pre-determined formula specifies the non-zero price discount as a function of parameters, the parameters comprising the distance from the current location of the mobile device to the retail location, time of the day, day of the week, and any special event; determining, by the processor and in response to determining that the consumer is in proximity to the retail location of the merchant, an expiration time of the LAMC based on the distance from the current location of the mobile device to the retail location of the merchant; sending the LAMC comprising the non-zero price discount and the expiration time to the mobile device used by the consumer; receiving, in response to sending the LAMC, a confirmation that the LAMC is delivered to the mobile device; and providing, to the merchant, an LAMC delivery record comprising the confirmation, wherein the non-zero price discount includes at least a minimum discount amount specified by the pre-determined formula.