News Column

Patent Issued for Payment Transactions on Mobile Device Using Mobile Carrier

August 27, 2014

By a News Reporter-Staff News Editor at Journal of Engineering -- According to news reporting originating from Alexandria, Virginia, by VerticalNews journalists, a patent by the inventors Marcus, David (Menlo Park, CA); Ferguson, Hill (San Francisco, CA), filed on May 9, 2012, was published online on August 12, 2014.

The assignee for this patent, patent number 8805326, is Ebay Inc. (San Jose, CA).

Reporters obtained the following quote from the background information supplied by the inventors: "Consumers are using mobile devices, such as smart phones and computing tablets, in an ever-increasing number of ways other than traditional voice communications between two users. For example, consumers are able to access the Internet, such as through mobile Internet applications (apps), watch programs, listen to music, etc. More recently, consumers are able to make payments using their mobile device, which provides an advantage of the consumer not having to carry physical funding instruments, such as credit cards, cash, and debit cards.

"However, due in part to security concerns, many mobile payment processes can be time-consuming and inconvenient. For example, the consumer may need to first be authenticated by a payment provider, such as by entering a user identifier like a user name, email address, or phone number, and a PIN or password. The consumer may also need to select a funding source or even enter funding source information, such as a credit card number. Additional information may further be required from the consumer before a payment can be processed and made. Furthermore, the overall processing time from payment request initiation to payment completion may be relatively time-consuming due to processing by the payment provider.

"Therefore, there is a need for a fast and easy way for a consumer to make a payment using a mobile device that overcomes the disadvantages of conventional methods discussed above."

In addition to obtaining background information on this patent, VerticalNews editors also obtained the inventors' summary information for this patent: "In one embodiment, a mobile payment application is installed in a merchant or seller application (app) on a user mobile device, where the mobile payment app may be from a service or payment provider. When the user is in the merchant app, the user is able to see and purchase specific items (including digital goods) and services from the merchant. By tapping or otherwise selecting a payment button or link, the user mobile device communicates the request to purchase to the service provider, where the request includes the user's mobile phone number.

"The service provider then generates a one-time token and sends the token to the user mobile device using the received mobile phone number. The mobile payment app on the phone receives the one-time token and verifies its authenticity by sending it back to the service provider through the user mobile device.

"The service provider then communicates the purchase request to a mobile carrier or operator of the user's mobile device, i.e., the entity providing mobile device wireless communication services for the user. The mobile carrier then processes the purchase request, which includes the payment amount and one or more of merchant information and item/service information, and approves or declines the payment request. The approval or decline is communicated to the service provider, which then communicates a notification to the user mobile device and to the merchant app.

"As a result, if the payment request is approved, the user may receive the item or service quickly and easily through a single touch or selection on the user mobile device. Because the service provider knows the user's phone number, that information can be used to process the payment request without additional user input.

"These and other features and advantages of the present disclosure will be more readily apparent from the detailed description of the embodiments set forth below."

For more information, see this patent: Marcus, David; Ferguson, Hill. Payment Transactions on Mobile Device Using Mobile Carrier. U.S. Patent Number 8805326, filed May 9, 2012, and published online on August 12, 2014. Patent URL:

Keywords for this news article include: Ebay Inc.

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Source: Journal of Engineering

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