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Closed Loop Wireless Banking Payment Transaction

IP.com Disclosure Number: IPCOM000015406D
Original Publication Date: 2002-Aug-15
Included in the Prior Art Database: 2003-Jun-20
Document File: 5 page(s) / 58K

Publishing Venue

IBM

Abstract

Closed Loop Wireless Banking Payment Solution This is a solution which allows users to shop and pay for their mobile purchases using their mobile phone. The payment is executed through the bank that they trust. This solution is suitable for a WAP (Wireless Application Protocol) banking and mobile commerce (m-commerce) portal which a financial institution can offer to its registered users. With the increasing use of mobile data services, more users are looking to do more than just phone calls and SMS (Short Messaging Service) with their phones. While there are plenty of opportunities in m-commerce, one of the crucial issues is payment. With existing solutions, it is difficult for a merchant to bill or collect payment from the mobile shopper. Mobile shoppers would also find it a hassle to write cheques to different merchants that they shop with, particularly if the payment amount is small (which is usually the case currently). Due to these reasons, M-commerce portals by banks or other financial institutions can potentially act as the payment intermediary between shoppers and merchants.

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Closed Loop Wireless Banking Payment Transaction

Closed Loop Wireless Banking Payment Solution

This is a solution which allows users to shop and pay for their mobile
purchases using their mobile phone. The payment is executed through
the bank that they trust.

This solution is suitable for a WAP (Wireless Application Protocol)
banking and mobile commerce (m-commerce) portal which a financial
institution can offer to its registered users. With the increasing use
of mobile data services, more users are looking to do more than just
phone calls and SMS (Short Messaging Service) with their phones. While
there are plenty of opportunities in m-commerce, one of the crucial
issues is payment.

With existing solutions, it is difficult for a merchant to bill or
collect payment from the mobile shopper. Mobile shoppers would also
find it a hassle to write cheques to different merchants that they
shop with, particularly if the payment amount is small (which is
usually the case currently). Due to these reasons, M-commerce portals
by banks or other financial institutions can potentially act as the
payment intermediary between shoppers and merchants.

However, the banks or financial institution would not want to be
concerned with maintaining the merchants' m-commerce content (e.g.
catalogues, prices, promotions, stock availability) on their portal,
preferring to concentrate on their core businesses. In addition,
merchants would prefer the freedom of updating/controlling their own
catalogues as and when they like. Merchants would also address the
problem of acquiring customer information such as delivery addresses
and payment information. With most of the current mobile devices,
entering so much information using the limited input features of the
phones can be a daunting (and deterring) task to the customer.

The Closed Loop Wireless Banking Payment Solution addresses all the
problems stated above. It offers a secure and hassle free way for
users to pay for their mobile purchases through the financial
institutions that they are registered with and therefore trust.

The solution addresses the payment problems inherent with current
mobile commerce solutions. Wireless Transport Layer Security (WTLS)
protects data sent between WAP device and the WAP Gateway. The data
sent between the WAP Gateway and the bank·s portal content server is
protected by SSL (Secure Socket Layer). The data sent between the
bank·s portal content server and the merchant·s site is also protected
by SSL. Any information (like the session info, the order details and
the acknowledgement messages) that is passed between the bank and the
merchant will be encrypted.

In this solution, activities like authentication & payment etc, are
handled by the Bank's portal. The merchant application just needs to

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conform to the pre-defined data format between the bank's portal
application and the merchant applications. There is no need for the
merchant to hold user's confidential payment information e.g. credit
card number...