News Column

"Electronic Commerce Network with Mobile Transactions" in Patent Application Approval Process

January 30, 2014

By a News Reporter-Staff News Editor at Politics & Government Week -- A patent application by the inventors WALL, Jonathan (San Francisco, CA); FREED-FINNEGAN, Marc (San Francisco, CA), filed on July 3, 2013, was made available online on January 16, 2014, according to news reporting originating from Washington, D.C., by VerticalNews correspondents.

This patent application has not been assigned to a company or institution.

The following quote was obtained by the news editors from the background information supplied by the inventors: "Electronic commerce, or 'e-commerce', is generally considered the buying and selling of a product or service over electronic systems or a 'commerce network' such as the Internet and other computer networks. Electronic commerce can include functionality such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange ('EDI'), inventory management systems, and automated data collection systems. Electronic commerce and a commerce network as a core function provides the exchange of data to facilitate the financing and payment aspects of business transactions.

"The mobile commerce aspect of a commerce network, also referred to as mobile transactions, mobile payment, and mobile wallet, generally refers to payment services operated under financial regulation and performed from or via a mobile device such as a smartphone. Instead of paying with cash, check, or credit cards, a user can use a mobile phone to pay for a wide range of services and digital or hard goods.

"There are many known models that can be used for mobile commerce. These models include Short Message Service ('SMS') based transactional payments in which the user sends a payment request via an SMS text message and a premium charge is applied to the user's phone bill or online wallet. Another model is direct mobile billing in which the user uses the mobile billing option during checkout at an e-commerce site, such as an online gaming site, to make a payment. After authentication typically involving a personal identification number ('PIN') and a password, the consumer's mobile account is charged for the purchase.

"Another known model is mobile web payments in which the user uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment using Wireless Application Protocol ('WAP'). Still another model is contactless Near Field Communication ('NFC') in which a consumer using a special mobile phone equipped with a smart card waves the phone near a reader module. Most NFC transactions do not require authentication, but some require authentication using a PIN before the transaction is completed. The payment is deducted from a pre-paid account or charged to a mobile or bank account directly.

"Each of these known models, and other known mobile commerce models, have potential disadvantages, including security concerns, lack of flexibility in that the user may be locked into a specific vendor or financial institution, and being difficult to use, especially when multiple or alternative forms of tender are involved in a transaction. As a result, no single model predominates the mobile commerce marketplace."

In addition to the background information obtained for this patent application, VerticalNews journalists also obtained the inventors' summary information for this patent application: "One embodiment is a commerce network that processes a mobile transaction. The network detects a mobile device of a user entering a store, the user having a corresponding user account that includes one or more tenders. The network creates a payment token corresponding to the detecting and registers it with the store. The network receives a personal identification number ('PIN') from the user and authenticates the PIN. The network receives a basket of goods of one or more items selected by the user for purchase, the basket of goods including line level data for the items. The network then selects one or more payment tenders from the one or more tenders based at least on the line level data and validates and authorizes the selected payment tenders.


"Further details, advantages, and modifications will become apparent from the following detailed description of embodiments of the invention, which is to be taken in conjunction with the accompanying drawings, in which like numerals denote like elements.

"FIG. 1 is an overview diagram of an electronic commerce network and associated peripheral devices in accordance with embodiments of the present invention.

"FIG. 2 is a block diagram of a computer server/system that can implement the network of FIG. 1, and well as any of the associated peripheral devices of FIG. 1, in accordance with an embodiment of the present invention.

"FIG. 3 is an overview diagram illustrating a user initiating the functionality of the network of FIG. 1 in accordance with one embodiment.

"FIG. 4 is an overview diagram illustrating a merchant initiating the functionality of the network of FIG. 1 in accordance with one embodiment.

"FIG. 5 illustrates a user being checked into a store with a store account in accordance with one embodiment.

"FIG. 6 illustrates a POS client at the merchant and using the merchant account to checkout the user in accordance with one embodiment.

"FIG. 7 further illustrates the checkout process based on a basket of goods selected by the user in accordance with one embodiment.

"FIG. 8 illustrates the functionality of a transaction engine in accordance with an embodiment of the present invention.

"FIG. 9 illustrates the functionality of the transaction engine with multiple items and multiple payment/tender options in accordance with an embodiment of the present invention.

"FIG. 10 is a flow diagram of the functionality of the commerce network module of FIG. 1 when providing mobile commerce and conducting a mobile transaction in accordance with one embodiment."

URL and more information on this patent application, see: WALL, Jonathan; FREED-FINNEGAN, Marc. Electronic Commerce Network with Mobile Transactions. Filed July 3, 2013 and posted January 16, 2014. Patent URL:

Keywords for this news article include: Patents.

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Source: Politics & Government Week

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