AU2018101938A4 - An Electronic Payment System for Transport - Google Patents

Abstract

A payment system for transport, the system comprising: (a) a block chain of one or more fully operational server nodes and one or more half-baked server nodes for hosting data about payments for transport; (b) an operator software application for the fully operational server nodes, wherein the operator software application is adapted to keep a ledger of expenditure in crypto-currency of a user of the payment system; and (c) a user software application for half baked server nodes, wherein the half-baked server nodes comprise an internet enabled device of the user for interfacing with the fully operational server nodes; wherein the software applications are adapted to allow a user to pay for taxi transport in crypto-currency digital tokens using the block chain server nodes. The software applications is adapted to prevent a user from paying for taxi transport until a previous payment for transport has been transmitted to the fully operational server nodes and verified by those server nodes. -18 3232 32 32-- 3 2 3 2 Figure 1

Description

AN ELECTRONIC PAYMENT SYSTEM FOR TRANSPORT

2018101938 03 Dec 2018

TECHNICAL FIELD [0001] The present invention relates to electronic payment systems and, more particularly to an electronic payment system for taxi transport.

BACKGROUND [0002] With the tremendous increase in world population the daily travel needs of people are increasing at pace never seen before. The need for public transport is greater than ever.

[0003] The worldwide taxi and limousine market in 2016 was conservatively estimated at $130 Billion USD and is growing at 6% annually. The Japanese market is estimated to be worth US $25-30 billion, the United Kingdom market is estimated to be worth at US $14-18 billion, the United States market is estimated to be worth $19-22 billion, the Australian market is estimated to be worth US $6 to $8 billion and the rest of the world market is estimated to be worth US $4050 billion.

[0004] At least 30% of the expenditure on the taxi and limousine market is transacted via credit or debit card payments. The average charge for the customer is 5% per transaction, which is added to the price of the fare. The worldwide value of transaction costs alone on taxi and limousine travel is estimated to be US $6.5 billion. Drivers and service providers have to pay an average of 2% of revenue to maintain their merchant facility. The value of such charges amounts to approximately US $2.6 billion per annum. The charges from banks, suppliers and brokers collectively add up to approximately US $9.1 billion per annum.

[0005] The traditional taxi market worldwide is supplemented by ride sharing companies such as Uber™, Lyft™ and Sidecar™. These ridesharing companies prefer credit cards as the method of payment. The recent growth of ride sharing companies has caused the revenue from card payments to increase by approximately 30%.

[0006] Taxi rides are typically paid with cash or credit cards. However, these payment systems have problems. Taxi drivers who handle cash are susceptible to thefts, robberies and muggings. Carrying cash can endanger the taxi driver’s safety.

[0007] Credit cards have high transaction fees. Card transactions can cost up to 10% and is mostly hidden within the service charge.

2018101938 03 Dec 2018 [0008] There are exorbitant foreign transaction fees with associated exchange-rate losses for foreigners. Card payments made overseas incur overseas transaction fees that is in addition to the normal transaction fees and is of the order of 1.5%-2.5%. Banks use exchange rates which are most favourable to them. Consumers have no bargaining capacity to obtain better exchange rates.

[0009] Credit card organisations charge exorbitant interest rates on outstanding amounts. Credit card payments in taxis are not exempt from such exorbitant charges. Banks encourage customers to only settle minimum payments for credit card transactions so that the outstanding balance lingers on and accrues interest.

[0010] Credit card processing methodology is complex. It is often not clear how the transactions are processed and approved. The so-called “approval” is only an interim approval and may not necessarily be a final approval. Many fraudulent transactions are difficult to detect at the time of the transaction. By the time a fraudulent transaction is detected, it is too late for the service provider to recoup any losses.

[0011] Credit card usage is highly susceptible to fraud. Stolen credit cards and their subsequent fraudulent usage causes billions of dollars of loss to the economy. Banks do not take responsibility for such losses in the form of chargebacks. The service provider suffers such losses.

[0012] When credit or debit cards payments are made, transactions do not get verified for at least 24-48 hours. Payment processors (such as banks) and organisations which distribute credit cards (such as Visa™, Mastercard™ and Amex™ etc.) go through a complex process to verify payments which delays transaction settlements.

[0013] Credit card organizations are limited in number, which reduces consumer choice and ability to negotiate lower charges.

[0014] Protection of one’s privacy is not guaranteed while using credit cards for payment in taxis and limousines.

[0015] In addition, taxi drivers have to bear regular fees for the operation and maintenance of a merchant facility. These merchant facilities are vulnerable to fraud, which result in costly chargebacks.

[0016] There is a need for a system which reduces the transaction costs for users and service

2018101938 03 Dec 2018 providers in the taxi industry and make it more attractive for consumers.

[0017] The object of the present invention is to overcome or at least substantially ameliorate the aforementioned problems.

SUMMARY OF THE INVENTION [0018] According to the present invention, there is provided a payment system for transport, the system comprising:

(a) a block chain of one or more fully operational server nodes and one or more half-baked server nodes for hosting data about payments for transport;

(b) an operator software application for the fully operational server nodes, wherein the operator software application is adapted to keep a ledger of expenditure in crypto-currency of a user of the payment system; and (c) a user software application for half-baked server nodes, wherein the half-baked server nodes comprise an internet enabled device of the user for interfacing with the fully operational server nodes;

wherein the software applications are adapted to allow the user to pay for public transport in crypto-currency using the block chain server nodes.

[0019] Preferably, at least one of the software applications is adapted to prevent a user from paying for taxi transport until a previous payment for transport has been transmitted to the fully operational server nodes and verified by those server nodes. More preferably, at least one of the software applications is adapted to prevent a user from paying for taxi transport by enforcing a delay between successive transactions. It is preferred that the delay increases with each successive transaction.

[0020] It is also preferred that the user software application is adapted to display the taxi fare to the user as it increases over time in multiple currencies.

[0021] If the taxi transport system comprises driverless taxis, the user software application for half-baked server nodes is preferably adapted to ask the user whether the journey is completed and thereafter process the payment.

[0022] The user software application may be adapted to allow the user to designate whether they are a driver or passenger.

2018101938 03 Dec 2018 [0023] Any of the features described herein can be combined in any combination with any one or more of the other features described herein within the scope of the invention.

BRIEF DESCRIPTION OF DRAWINGS [0024] Various embodiments of the invention will be described with reference to the following drawings, in which:

[0025] Figure 1 is a depiction of the components of the payment system for transport according to present invention.

[0026] Figure 2 is a depiction of a mobile phone running a software application showing a digital wallet interface for users of the payment system of figure 1.

[0027] Figure 3 is a depiction of a mobile phone running the software application of figure 2 showing a payment interface.

[0028] Figure 4 is a depiction of a mobile phone running the software application with a payment confirmation interface for users of the payment system of figure 1.

DETAILED DESCRIPTION [0029] Figure 1 shows the payment system 10 for transport in the vehicle 12. The driver 14 has a device 16 which runs a software application. The device 16 is mounted on the dashboard of the vehicle 12 to allow a passenger 18 to monitor the fare. The passenger 18 uses their own device 20 which also runs the software application and allows the user to pay the fare. The software application has a facility for the user to designate whether they are a driver or passenger.

[0030] The payment is made in a cryptocurrency represented by ‘digital tokens’. This ensures easy and cashless payments between passengers and drivers. The digital tokens reside in an account called a ‘digital wallet’ within the software application, as shown in the digital wallet interface 22 of figure 2.

[0031] Each digital wallet has a unique a QR code 24. The passenger 18 scans the QR code 24 of the driver 14, which is displayed on the payment interface 26 of figure 3. The passenger 18 can then choose to pay the fare, which takes the user to the payment confirmation interface 28 in figure 4. The payment confirmation 30 displays the new balance of the digital wallet after the funds have been transferred.

2018101938 03 Dec 2018 [0032] The digital wallets interact with each other using blockchain technology. A transaction on a blockchain is verified by fully operational server nodes 32 that are connected via the internet 34 through a peer-to-peer network to the user devices 16 and 20 which are halfbaked server nodes.

[0033] The blockchain is effectively a shared database that facilitates the creation of a digital ledger of transactions. The ledger is an aggregation of replicated, shared and simultaneously processed digital data, geographically spread across various sites, countries and/or institutions.

[0034] Using cryptography, the blockchain allows each user on the network to manipulate the distributed digital ledgers in a safe way without need for a general control panel. The lack of a central control panel reduces the chance of the system being hacked and manipulated. The blockchain builds up an increasing list of blocks, which are also called records. Each record bears a timestamp connecting it to a previous timestamp.

[0035] The transactions of the present invention are carried out on a platform can be viewed by all parties to the transaction. These transactions cannot be modified or erased, which means the platform offers unending security for users. This makes the system of the present invention secure, dependable and durable.

[0036] All users of the system 10 are securely protected and have their information known only by them. There is little chance of the system 10 being compromised unless a user intentionally shares their information to other people.

[0037] The system 10 involves secure transactions without need for a third party or middle man for intermediation. This reduces the chances of charges and fraud from any of the parties involved.

[0038] The speed and size of blocks determines the verification and settlement time for a transaction. Sometimes a full verification and propagation throughout a blockchain network can take some time. This creates an opportunity for ‘double-spending’ for a short time.

[0039] The software application solves this problem by having a transaction time limit in the digital wallets. The software application is adapted to prevent a user from paying for taxi transport until a previous payment for transport has been transmitted and verified by the fully operational server nodes 26. That is, the software application is adapted to prevent a user from paying for taxi transport by enforcing a delay between successive transactions. In some

2018101938 03 Dec 2018 embodiments of the invention, the delay increases with each successive transaction.

[0040] Nevertheless, passengers in taxi transport do not commonly make ‘back-to-back’ trips, immediately switching from one taxi to the next.

[0041] The software application has a taxi meter, but it also allows the driver and passenger to agree on a fare in advance of the trip. Fares are displayed in digital tokens and its equivalent in any designated currency in the software application throughout the trip (as shown in figure 3). The drivers and passengers will have the ability to store wallet addresses for repeat usage.

[0042] The software application automatically records the start and end locations for a trip. All transactions have the exchange values of local and user’s home currency time stamped, which is advantageous for foreign travellers.

[0043] Another innovative aspect of the present invention is the auto interact wallet. This will help in automating payments in driverless taxi environment. The auto interact wallet is an automated process of wallet interaction without human input on the part of the driver. Unique identifiers will be generated for each driverless vehicle that map to the digital wallet of the taxi service.

Advantages of the present invention [0044] The advantage of the payment system of the present invention is the absence of middle man or third-party agent such as banks and credit or debit card merchants when transactions are performed. No credit and card debit card processing fees will apply. Unlike credit cards where the middle man charges significant fees to the user and provider, the peer to peer Blockchain network only demands minimum charges. The charges are less than 1/1000th of the credit card charges and these charges are paid to the 6 independent nodes that verify the transactions on the system. Massive cost savings are achieved by eliminating the middleman.

[0045] As the payment system of the present invention is internet based and universal, there is no distinction in using the digital tokens of the present invention in any country. This means that there is no such thing as an overseas transaction and hence no overseas transaction fees. The standard minimal fees apply in any part of the world and is the same regardless of the location.

[0046] With the present invention, there is no foreign currency exchange involved in transactions. Accordingly, there are no exchange losses in using the system of the present invention overseas.

2018101938 03 Dec 2018 [0047] Payments can be carried out securely in seconds from one person to another without any unnecessary protocols.

[0048] The present invention reduces the possibility of fraud which is present in prior art payment solutions. A credit card transaction can be only be challenged as fraudulent long after the transaction has occurred. However, in the system of the present invention, once the transaction is verified it cannot be altered or refunded, which provides more certainty of income for taxi car drivers.

[0049] A credit card can be used by keying in the card number and date of expiry. It can also be used by tapping it where a Pay Wave™ facility is in place. When used, such information can be intercepted very easily by fraudsters. In the case of the present invention, only the public key of the user is displayed and the encrypted private key is always hidden. The private key is required to initiate a transaction. There is no way for a fraudster to hack the private key from the displayed public key. Thus, the present invention provides enhanced protection against fraud.

[0050] A transaction record on the blockchain is publicly viewable. Each record has wallet addresses of the sender and receiver. Information on ownership of the wallet cannot be viewed on the blockchain. Hence there cannot be any breach of privacy.

[0051] The payment system of the present invention does not involve cash and bank charges. Hence, the risk of being subject to theft is completely avoided.

[0052] The present invention also reduces the wait time for funds to clear. Transactions with the present invention are virtually instantaneous and happen on the blockchain in near real time. Transactions will be verified and settled in less than a minute. This settlement process is extremely efficient as compared to card settlements that can take 24-48 hours.

[0053] There are no foreign transaction fees or currency exchange losses applicable to foreigners.

[0054] The present invention also provides privacy and anonymity in its transactions. Transactions cannot be traced through names and personal information like in normal credit card or debit card based transactions that have access to a user’s personal information.

[0055] Drivers and riders will be able to use their digital wallet from anywhere, irrespective of their location.

[0056] A consumer does not have to get involved in the process of negotiating better

2018101938 03 Dec 2018 exchange rates, as the base for all transactions will be the digital tokens of the present invention.

Furthermore, the digital tokens are not controlled by any entity and are readily available for purchase. The price of the digital tokens is determined by market forces and not by any centralised organisation.

[0057] The transactions on the system 10 of the present invention are completely anonymous and transactions do not carry any identity of the spender or the receiver. Therefore, there is no possibility for assuming someone else’s identity. The digital wallet addresses are characterised by a unique string of alpha-numeric characters unique for each user. The characters do not bear any personal information. Once the transaction has been verified by preferably 6 independent nodes, the funds are deposited to the wallet of the receiver and debited from the spender’s wallet.

[0058] The digital tokens can be complementary as a cash based prepaid system where no credit is extended by anyone. One’s own cash has to be used to purchase digital tokens and hence there is no interest rates involved.

[0059] The digital tokens will give much relief to consumers relying on using credit cards for taxi payments. Their taxi fare will not add to their perpetual debt cycle as it is prepaid and there is no possibility for accumulation of debt.

[0060] Buying, selling or usage of digital tokens is not linked with any credit reporting agencies. Thus, there is no impact on the credit rating of an individual using digital tokens of the present invention.

Concluding Remarks [0061] In the present specification and claims (if any), the word ‘comprising’ and its derivatives including ‘comprises’ and ‘comprise’ include each of the stated integers but does not exclude the inclusion of one or more further integers.

[0062] Reference throughout this specification to ‘one embodiment’ or ‘an embodiment’ means that a particular feature, structure, or characteristic described in connection with the embodiment is included in at least one embodiment of the present invention. Thus, the appearance of the phrases ‘in one embodiment’ or ‘in an embodiment’ in various places throughout this specification are not necessarily all referring to the same embodiment.

Furthermore, the particular features, structures, or characteristics may be combined in any suitable manner in one or more combinations.

2018101938 03 Dec 2018 [0063] In compliance with the statute, the invention has been described in language more or less specific to structural or methodical features. It is to be understood that the invention is not limited to specific features shown or described since the means herein described comprises preferred forms of putting the invention into effect. The invention is, therefore, claimed in any of its forms or modifications within the proper scope of the appended claims (if any) appropriately interpreted by those skilled in the art.

Claims (7)

1. A payment system for transport, the system comprising:

(a) a block chain of one or more fully operational server nodes and one or more half-baked server nodes for hosting data about payments for transport;

(b) an operator software application for the fully operational server nodes, wherein the operator software application is adapted to keep a ledger of expenditure in cryptocurrency of a user of the payment system; and (c) a user software application for half-baked server nodes, wherein the half-baked server nodes comprise an internet enabled device of the user for interfacing with the fully operational server nodes;

wherein the software applications are adapted to allow a user to pay for taxi transport in crypto-currency digital tokens using the block chain server nodes.

2. The system of claim 1, wherein at least one of the software applications is adapted to prevent a user from paying for taxi transport until a previous payment for transport has been transmitted to the fully operational server nodes and verified by those server nodes.

3. The system of claim 1 or claim 2, wherein at least one of the software applications is adapted to prevent a user from paying for taxi transport by enforcing a delay between successive transactions.

4. The system of any one of the preceding claims, wherein the delay increases with each successive transaction.

5. The system of any one of the preceding claims, wherein the user software application is adapted to display the taxi fare to the user as it increases over time in multiple currencies.

6. The system of any one of the preceding claims, wherein the taxi transport system comprises driverless taxis and the user software application for half-baked server nodes is adapted to ask the user whether the journey is completed and thereafter the payment is processed.

7. The system of any one of the preceding claims, wherein the user software application is adapted to allow the user to designate whether they are a driver or passenger.