AU709016B2

AU709016B2 - A method and a system for effecting payments

Info

Publication number: AU709016B2
Application number: AU78656/98A
Authority: AU
Inventors: Petri Heinonen; Matti Marttila; Markku Rautiola; Mikko Terho
Original assignee: Nokia Mobile Phones Ltd
Current assignee: Nokia Technologies Oy
Priority date: 1995-02-15
Filing date: 1998-08-03
Publication date: 1999-08-19
Anticipated expiration: 2016-02-09
Also published as: AU7865798A; AU712095B2; AU7865698A

Description

P:\OPER\GCP\46247.DIV 31/7/98 -1A- A METHOD AND A SYSTEM FOR EFFECTING PAYMENTS The invention relates to a method and a system for effecting payments.

There are prior art mobile phones in which the control card includes a subscriber identification unit, such as the SIM (Subscriber Identity Module) used in GSM (Global System for Mobile Communications) standard based systems. The SIM comprises a 10 control unit CPU (Central Processing Unit), program memory ROM (Read Only Memory), data memory suited for long-term storage EEPROM (Electrically Erasable Programmable Read Only Memory) and operation memory suited for saving data during use RAM (Random Access Memory). For using the mobile phone, a PIN (Personal Identification Number) number saved on the SIM must be given, generally when the mobile phone is switched on. Other user-specific information, such as telephone numbers, messages, etc. can also be saved in the data memory of the SIM.

There are now also mobile phones which have a data connector for connecting an external data processing unit, such as a portable computer. Thus the mobile phone can be used as a means for data transfer between the portable computer and some other data processing equipment through a radio communication network. In this way it is possible to establish a connection e.g. to the user's bank for checking the balance and effecting payments. However, an arrangement of this kind is not very practical, because a separate cable is needed between the computer and the mobile phone. In addition, the computer must be available for establishing e.g. a bank connection.

Wireless systems, so called smart cards or payment cards, are also known, the said cards being mostly used in payment applications, such as making payments in buses and public telephones. Smart cards like this generally include a central 2 processing unit, a program memory and a data memory. The internal operation of the card in use is controlled by the CPU in accordance with the program code stored in the program memory. The data memory is used for saving information relating to the intended use of the smart card, such as its value in money. For performing the payment transaction, the card also contains means for data transfer, such as a transmitter/receiver based on electromagnetic induction. A disadvantage of smart cards of this kind is, the fact that several different cards may be needed for different kinds of payment, and so the user must carry a large number of cards. In addition, when the amount of money loaded in the card has been consumed, one needs to buy a new card or load a new amount of money in the card at a sales outlet offering a loading service.

The Japanese patent application JP 4 083 447 presents a mobile phone to which ,it is possible to add more properties by means of a separate memory card. An application like this is preferably arranged for a certain use, such as for increasing the saving capacity or the telephone number memory. Applications like this are *"based on a method in which the central processing unit of the mobile phone reads the data saved in the applications (memory cards) and operates in a predetermined way required by the data. A disadvantage of this method is the fact that the functions needed for performing different operations of the applications must be programmed to the central processing unit CPU in advance, whereby the development of new applications also requires changes in the programs of the central processing unit.

The international patent application WO 91/12698 presents a mobile phone to which it is possible to add properties by means of a separate add-in card, such as a smart card. In this way it is possible to restrict the use of the phone by preventing foreign calls, long-distance calls or calls to service numbers, for example. The information about call restrictions is saved on an add-in card which the user has to install in the mobile phone when it is being used. Thus the main use of this method is to prevent the use of some properties of the mobile phone.

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P\OPER\GCP\46247 DIV 31/7/98 -3- In order to eliminate the aforementioned disadvantages and to raise the standard of technology in this field, a new method for using applications in a mobile radio communication unit (mobile station) has been invented, as well as a new mobile station and a new system for effecting payments. The application is preferably arranged for a certain use, such as a credit card, a cash card or a payment card. The application can also offer special services, like time tables for public transportation or exchange rates. The application is preferably implemented in an application module, the technical solutions of which can be close to those of the above mentioned SIM.

The same application module can contain more than one application. The application 10 module is attached to a module card of a certain size, generally formed of plastic or corresponding material, in such a way that the application module has an application ***.connector for leading the required conductors from the mobile station to the application module. The same module card can include several application modules, whereby each application module has its own application module connector. The application module connectors are functionally connected with the application module connectors of corresponding module cards. Each module card is connected to a module card connector arranged in the mobile station, in which arrangement the said module card connector also includes an application module connector.

*o 20 According to the present invention there is provided a system for effecting payments, wherein the system comprises: at least one mobile station that includes: an application, means for using the application, and a first means for providing local data transfer; wherein said system for effecting payments further comprises: at least one payment reception terminal which has a second means for providing local data transfer, said second means for providing local data transfer being coupled to said first means for providing local data transfer through a wireless interface; and wherein the application comprises means for transferring data between P:\OPER\GCP\46247.DIV 3117/98 -4the first means for providing local data transfer and the second means for providing local data transfer through said wireless interface, for registering a payment transaction in the payment reception terminal.

The invention also provides a method for operating a payment system that includes a first, user terminal and a second terminal, the first, user terminal having at least one application, the method comprising the steps of: entering information into the first, user terminal specifying that a payment be made from the first, user terminal to the second terminal; 10 establishing a communication link from the at least one application to the second terminal through a wireless interface; and *registering a payment transaction with at least one of the second terminal and the at least one application.

Remarkable advantages are achieved by this invention compared to the prior art solutions. By means of this invention, the range of possible uses for a mobile phone °.°can be substantially increased. Besides the normal phone and data services, the mobile stations related to the invention can also be used e.g. as a credit S card and/or as a cash card, instead of traditional plastic cards. By means of a mobile station equipped with a suitable application module the user can make payments in a shop using his/her credit account (credit card application) or pay directly from his/her bank account (cash card application), and thus no real cash is needed.

Typical for both credit card and cash card type of applications is that money, in electric form, is stored in a central computer (also referred as a money server), which the mobile station contacts when making a payment. The money server is typically located in a bank's premises. If wanted, it is possible for the application to check the credit limit or the balance of the bank account before the payment is accepted.

*It is also possible to store money to an "electric money purse" in the mobile station or in the application module itself. In that case it preferably is not necessary to check the credit limit or balance of the bank account from the money server before the payment can be accepted, i.e. it is not necessary to contact the money server for making a payment. The information of how much money there is stored in the "electric money purse" can be read from the memory of the mobile station or the application module, from which electric money is subtracted when a payment is made. These kind of applications, where the money is stored in the mobile station or in the application module itself, are also referred as payment applications.

In the following, the invention will be described in more detail with reference to the accompanying drawings, in which Figure 1 shows a block diagram of a mobile station, Figure 2 shows the electric construction of an application module bus between the application module connection unit and CPU of a mobile station, Figure 3a shows a control card of a mobile phone, Figure 3b Figure 3c Figures 4a and 4b Figure 5 10 Figure 6 Figure 7 shows the internal structure of the control card of the mobile phone shown in Figure 3a as a block diagram, shows a module card to which two application modules are connected, show the switching of the application from the first mode of operation to the second mode of operation as a flowchart, shows the path of the telephone call between the application and a mobile services switching centre (MSC) in a mobile radio communication network as a simplified diagram, shows the use of a method in accordance with the invention in connection with a cash card or payment card application, shows the communication between two mobile stations.

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In the exemplary embodiment of the invention, shown in Figure 1, a cardcontrolled mobile station 1 comprises a master control unit MCU, a user interface UI, a high-frequency part RF, a low-frequency part AUDIO, a power unit 2, a first means for data transfer IR, and an application module connection unit 6. The operation of the mobile station 1 is controlled by the MCU, which has a program code stored in advance for performing different operations.

The user interface UI comprises components which are known from prior art mobile phones, namely a display 7, a keypad 8 and status indicators 23. The MCU produces various, situation-specific messages, operation instructions, menus etc.

on the display 7. Using the keypad 8, the user can enter different kind of information to the mobile station 1, such as the identification number and telephone number, and select operations from the menus. The status indicators 23 can preferably be used to indicate the internal modes of operation of the mobile station 1.

The radio frequency component RF is a known component of mobile phones, which is used to transmit and receive calls and messages using radio frequencies in a radio communication network, such as a GSM network, e.g. through a mobile services switching centre, MSC.

The low-frequency part AUDIO preferably comprises a microphone 9, a headphone 10 and a buzzer 11 or the like.

The operation power for the mobile station 1 is supplied by a battery 12, which is charged when required. The power unit 2 monitors the charge status and charging procedure of the battery 12, among other things. The power unit 2 sends the 10 information to the central unit MCU when the charge status of the battery 12 falls below a predetermined value, whereby the MCU announces this preferably by sounding the buzzer 11 and/or showing a message on the display 7.

0 A module card 13, like the one shown in Figure 3a, is connected to the module card connector (not shown) located in the mobile station 1. The module card 13 6.

15 can contain, among other things, a subscriber identity module (SIM) for user identification.

Application module connectors have been arranged in the application modules 19 in the module card 13.

Figure 3b shows the internal structure of the SIM as a simplified flowchart. The central processing unit CPU controls the operation of the SIM on the basis of the program code stored in the program memory. Various user-specific information can be saved in the data memory EEPROM, and this information stays in the memory even if the control card SIM is removed from the application module connection unit 6. The application module connection unit 6 is located in the mobile station 1 as shown in Figures 1 and 2. During the operation of the control card, the operation memory RAM (Figure 3b) can be used as a temporary data storage.

The bus adapter DATA-I/O fits the SIM card to the application module bus 14 and to the control and data line I/O (Figure 2).

Other module cards 13 can also be connected to the application module connection unit 6 of the exemplary embodiment in Figure 1, whereby they are preferably connected to their own module card connectors. The application module 19 (Figure 3c) on the module card 13 can have a similar mechanic and electric construction as the SIM card shown in Figures 3a and 3b. From the application module connection unit 6 to the central processing unit of the mobile station 1 (MCU), there is an application module bus 14, by means of which the application modules 19 connected to the application module connection unit 6 communicate with the MCU. The AT commands, known e.g. from modems, can be used for the transfer of data and commands. The AT commands have been described in more detail e.g. in the Master of Science Thesis of Petri Heinonen, "Proposal for Standard AT Commands Used with GSM Mobile Equipment", 1994, Tampere University of Technology.

In addition to the application module bus 14, there is a separate control and data 15 line I/O, I/O" (Figure 2) from each application module connector 15, 16, 17, of oeoo the application module connection unit 6. Thus it is possible to use a structure based on the standard series ISO 7816 in the control and data line. The standard series ISO 7816 includes the voltage levels and timing diagrams, according to which the application modules 19 (Figure 3c) are connected to the control and data line I/O, I/O".

For each application module 19, the application module connecting unit 6 has a connector, through which the application module bus 14 is led to the application module 19.

More than one application modules 19 can be connected to the same module card 13, as shown in Figure 3c. The second application module 19' on the module card 13 can be a SIM module, for example.

The mobile station 1 also comprises a first means of data transfer, such as an infra red IR transmitter/receiver. The first means of IR data transfer can be used to transfer data, with relatively short distances, between the mobile station 1 and a 9 cash register (payment terminal) 21 or, between two different mobile stations 1 (Figure 7).

The first means of data transfer IR may also include a data connector 20, which can be used to connect a computer to the mobile station 1 (Figure 1).

Figures 4a and 4b show how the application 18 is activated and inactivated, and how the application 18 is switched from the first mode of operation to the second mode of operation and vice versa. In this patent application, the first mode of operation means a mode in which the application does not do anything actively, but gets instructions through an application in the second mode of operation or through the MCU. The second mode of operation means a controlling mode, whereby an application in the second mode of operation can control the operation of various units of the mobile station 1, including the central unit MCU, and send messages to other applications.

9*The MCU can also have two different modes of operation: 1) normal mode and 2) application mode. In the normal mode, the central unit MCU operates like in a .**known mobile phone, controlling the operation of the mobile station. In the appli- .'*cation mode, the MCU can be controlled by an application 18 (Figure 3c), which is in the second mode of operation. Even in the application mode, the central unit *MCU can read the keypad 8 and send information of keypad input to the application 18 in the second mode of operation, if the said application 18 requests it.

In the example shown in Figure 4a, the procedure starts from the switching on (100) of the mobile station 1 whereafter the MCU of the mobile station 1 sets the control and data line I/O of the first application module connector 15 (Figures 1 and 2) to the reset status (block 101). If an application module 19 (Figure 3c) has been connected to the first application module connector 15, and the said module 19 sends an acceptable ISO 7816 answer (block 102) to the MCU, the MCU sets the control and data line I/O of the first application module connector 15 to the allow status (block 103). In block 104 the MCU concludes whether all application module connectors 15, 16, 17, have been examined.

If all application module connectors 15, 16, 17 have not yet been examined, the procedure returns to block 101, in which the next application module connector 16, 17, is examined. If the MCU gets no response in block 102, or if the reply is not acceptable, the procedure continues in block 105, in which the MCU concludes that an ISO 7816 based application module 19 has not been attached to the application module connector 15, 16, 17.

When all application module connectors 15, 16, 17 have been examined, the procedure continues in block 106, in which the user identification, which is a known operation e.g. from a GSM network, is performed. If the user identification fails, the power-up procedure of the mobile station 1 is stopped (block 107). The user has generally three opportunities to give his/her own personal identification number. If the identification number is not given right at the third time, the user must give a longer identification code, after which the user has again three opportunities to give his/her own personal identification number right. If the user does 15 not give the right identification number at any of these three extra opportunities, either, the user must give the longer and shorter identification code again. If the identification number is not given right after the allowed number of attempts, the :°:control card destroys the information contained in it, whereby the control card SIM is permanently disabled.

When the personal identification number has beehn given ellrsr, the MCU moves to block 108, in which the MCU queries the information of applications 18 contained in the application module 19 connected to the first application module connector 15. If the application module 19 contains applications 18, the MCU reads the information of applications 18 (block 109) and saves them to its memory (block 110). If the examined application module 19 does not have applications 18, or there is no application module in the connector, the MCU saves this information in its memory (block 111). In block 112 the MCU concludes whether all application modules 19 have been examined. If there are still application modules 19, which have not been examined, the procedure retumrns to block 108, which queries the information of applications 18 contained in the next application module 19.

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11 When the MCU has examined all application modules 19, the procedure continues after block 112 in block 113, in which the MCU prints a menu on the display 7 of the mobile station 1, and the user can select from the menu the application 18, which is to be switched to the second mode of operation, to control the MCU. If the user selects an application 18, the MCU asks which parts of the user interface UI are required by the application 18, such as the display 7, the keypad 8 and/or the status indicators 23. If the MCU does not get an acceptable answer from the selected application 18, the procedure retumrns to block 113. Whereas if the MCU gets an acceptable answer from the selected application 18, the MCU switches to the application mode, i.e. to be controlled by the selected application 18 (block 115).

If the user does not select an application 18 (block 113), the MCU switches to the °:°°,normal mode (block 116), in which no application 18 controls the MCU, but all applications 18 are in the first mode of operation.

e 15 In the normal mode, block 117, the MCU can print a menu on the display 7 of the mobile station 1, a menu which contains the applications 18 available in the applia.cation modules 19. From the menu, the user can select the application which is to be switched to the second mode of operation (block 118). If the module card 13 is S0 detached from the module card connector, all applications 18 in the detached module card 13 will be removed from the menu of the mobile station 1 (block 128).

In block 118, the situation, where the MCU queries the applications 18 contained in the selected application module 19, is described. If the MCU gets an acceptable answer from the application module 19, the MCU ignores power-up-type applications 18, but saves information of other applications (block 119). If the MCU does not get an acceptable answer from the application 18, no new applications 18 will be added (block 120).

If the MCU is in the normal mode of operation in block 116, and the user selects an application 18 from a menu, or an application 18 of an automatic type informs the MCU that it is switching to the second mode of operation, the MCU will ask which units of the user interface Ui of the mobile station 1 the application 18, 12 switching to the second mode of operation, will need (block 121). If the MCU does not get an acceptable answer from the application 18, the operation of the MCU will move to block 117. If the application 18 gives an acceptable answer to the MCU, the MCU will switch to the application mode (block 115).

When the MCU is in the application mode (block 115), and the precondition for an application 18 of the automatic type to switch to the second mode of operation is satisfied, that moment the application 18 in the second mode of operation is queried whether the application of an automatic type can switch to the second mode of operation (block 122). If switching is not allowed, the procedure returns to block 115. If switching is possible, the MCU asks the application of an automatic type 18 which units of the user interface UI of the mobile station 1 it needs (block 123).

If the answer is not acceptable, the operation of the MCU returns to block 115 :.'*again. When the answer is acceptable, the application 18 of an automatic type switches to the second mode of operation to control the operation of the MCU, and at the same time the application 18, which was in the second mode of operation, switches to the first mode of operation.

If the module card 13, containing application modules 19, the applications 18 of which are in the first mode of operation, is removed from the module card connector, the said applications 18 will be removed from the menu.

If a new module card 13 is added to the mobile station 1, the identifying parameo: :ters of applications 18 of application modules 19 in the module card 13 are queried in block 125. If the application module 19 sends the identifiers to the MCU, the MCU rejects power-up-type applications 18 and saves the other applications 18 contained in the application module 19 in block 126. If no acceptable answer is received from the application module 19, the information of the application module will not be added (block 127).

If a module card 13 is removed from the module card connector, the said card 13 containing a power-up or automatic type of application 18, which is the second mode of operation, the mobile station 1 is switched off. Otherwise the MCU returns to the normal mode (block 116). An application 18 of the menu or automatic 13 type being in the second mode of operation can also retumrn automatically or be retumrned manually by the user to the first mode of operation (129).

In the following, the operation of a cash card or other payment card application in a mobile station 1 representing an embodiment of this invention will be described in principle (Figure 6).

The mobile station 1 has both the control card SIM and one application module 19 connected to it, and the said module 19 contains an application 18 (not shown in Figure which in this example is a cash card application. The application 18 has at least one account corresponding to the user's bank account, whereby the user can make payments from the account in the application 18. Preferably, when the S application 18 has been brought into use, the balance information has been read from the bank account, e.g. using the normal data channel of the GSM network or as a SMS message, and saved to the data memory EEPROM, which is part of the application module 19 and is used by the application 18.

In connection with the payment, the application 18 reduces the balance of the account in the application 18 accordingly. The updating of payment transactions o etc. in the application 18 to the user's bank account can take place preferably automatically, controlled by the application 18, e.g. at a certain time, and/or as selected by the user from a menu of the mobile station 1, and/or in connection with the payment. When the bank account is updated, the application 18 guides the MCU to establish a connection for data transfer through a Mobile Services Switching Centre MSC, and most often through some private wired network, to the computer 22 in the bank. Establishing the connection can take place either by asking the user for the telephone number first, or by using a number saved in the memory of the application, which makes the procedure easier. Preferably, if SMS messages are used to update the balance information, the normal speech/data channel is free for other activities.

In the mobile station 1, the user can have many different accounts at the same time, such as a bank account, a credit account and/or a cash account, and they can be in different applications 18, even in different application modules 19. An advantage of this method is, among other things, the fact that the user can transfer money between the accounts, e.g. from a credit account to a bank account or cash account.

The application 18 can be brought into use e.g. after the mobile station 1 has been switched on, as is shown in the flowchart of Figures 4a and 4b. The MCU prints a message to the display 7 for entering the identification number. The user enters his/her own identification number, which is read by the MCU and transmitted to the SIM card. The central processing unit CPU in the SIM examines the entered identification number by comparing it to the previously saved identification number and informs the MCU whether the identification number has been given right. If the identification number was not right, the MCU can ask the user to give it again.

If the identification number has been given right, the MCU operates in accordance with the phases described above. Because there are no other application mod- 15 ules 19 in the other connectors 16, 17, in this embodiment, the MCU prints a menu to the display 7, from which the user can select an application 18 of the application module 19, which application is a cash card application, whereafter the application 18 switches to the second mode of operation, and the MCU switches to the application mode.

Ordinary phone calls can be made with the mobile station 1. All the other functions of the mobile station 1 are also available. The essential difference is that when the user enters a telephone number from the keypad 8, the MCU transmits the key press information to an application in the second mode of operation, which guides the MCU to establish a connection.

If a user wants to inquire the balance of his/her bank account, he/she will first select the menu function using the keypad 8, whereby the MCU transmits the key press information to the application 18. The application 18 guides the MCU to print a menu to the display 7, from which the user can select a balance query.

After the user has selected a balance query from the menu, the MCU transmits the key press to the application 18, which examines it and sends a message to the MCU, which then prints a text on the display 7, telling the user that the mobile station 1 is performing a balance query. Next the application retrieves the balance saved in the data memory EEPROM of the application module and forms a message by which the MCU prints the balance on the display 7.

The following is an example of the implementation of the aforementioned balance query using AT commands:

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*r Event code: AT command: AT command: Event code: Event code: AT command: Event code: 15 Event code: AT command: Event code: AT command: AT command: Event code: AT command: Event code: AT command: +CKEV: 91,1 (choose menu) AT+CDIS="NOKSET", "View A","menu (update display) AT+CIND=,,,,11,11 (update indicators) +CKEV: 91,0 +CKEV: 49,1 (choose menu number AT+CIND=,,,,11,1 +CKEV: 49,0 +CKEV: 53,1 (...number +CKEV: 53,0 AT+CDIS="NOKSET","Amount of", "balance","","OK","Quit" (display menu AT+C!ND=,,,,0,Q +CKEV: 91,1 (choose "OK") AT+CDIS="NOKSET", +CKEV: 91,0 AT+CMGS="12345678"Request amount of balance messageAZ (send short message) Event code: +CMTTEXT: "12345678",12 (receive result) 125232,69 mk 0,0,0,,94102610100058,8, AT command: AT+CDIS="NOKSET","You have ","125232,69 (display result) In the previous example, the balance inquiry was done from the memory of the application module in the mobile station. Typical for these account based applications is the need of data transfer between the mobile station and the bank. If that data transfer fails, for some reason, it may be necessary to do the balance inquiry or update "manually" from the bank. If the user selects direct balance inquiry, using e.g. a menu, the mobile station transmits a balance inquiry to the bank using e.g. short message service SMS, if available. In the message there is the current balance of the account in the application, from the application module's memory, included. Therefore, when the bank retumrns the updated balance, preferably both the changes in the application module's and bank's accounts can be taken into account.

Payments from the account can also be made easily by entering the appropriate information from the keypad 8 of the mobile station 1.

S-The following is a description of one exemplary embodiment of the invention, in which the application 18 is a cash application, by which payments can be made e.g. in shops or buses.

The application 18 is identified as shown in the previous example. When the -application 18 has switched to the second mode of operation, the user can establish a connection with the mobile station 1 to the computer 22 in the bank, and transfer money from his/her account to the cash application. In practice, the transfer takes place electronically, whereby the balance of the cash card increases and the balance of the bank account decreases. The user performs internal bank transfers with the mobile station 1 from the bank account of the payment application to the cash application or vice versa. Intemrnal bank transfers require that the information on the transfers must be updated to the computer 22 in the bank.

For making the payment, the user enters a certain code, by which he/she informs the application 18 that he/she wants to pay for the shopping. After this, the application establishes a connection through the MCU to the first means for data transfer IR, such as an IR transmitter/receiver or the like. Second means of data f- 17 transfer are arranged in the cash register 21 or the like in the shop, through which means the application 18 and the EPOS (Electronic Point of Sale) terminal application of the cash register can have a mutual connection for data transfer.

When the connection has been established, the user enters the identification number of the cash card, and the cash card application compares it to the previously saved identification number. If the identification number has been given right, and the application 18 has sufficient balance, the payment transaction is registered both in the cash register 21 and the application 18 of the mobile station 1, whereby the balance on the cash card is decreased correspondingly. The updating of the payment transaction to the computer 22 can take place either from an EPOS application or from the application 18 of the mobile station 1.

In IR data transfer, it is preferable to use a known standard, such as the protocol stack defined by IrDA (Infrared Data Association), which is based on the OSI (Open Systems Interconnection) model of ISO. The protocol stack uses the layers 15 of the OSI model: 1) physical layer, 2) data link layer, 3) network layer and 7) 4 application layer.

On the physical layer, data transfer can be based on infrared, but other known methods of data transfer, such as ultrasound, electromagnetic induction or radio .4 waves, can also be used.

Data transfer is secured in the data link layer, e.g. by error correction algorithms.

In addition, the functions of the data link layer are used for identifying the means for data transfer in situations in which many means of data transfer can be operating simultaneously, e.g. in shops where there are many EPOS applications.

In the network layer, the messages going through the means for data transfer can be distributed to the receivers regardless of the number of means for data transfer in operation. In addition, the information to be transmitted can be enciphered in the network layer, which is particularly important in payment applications.

The application 18 is capable of data transfer through the application layer, in which the application 18 sends and receives information needed for data transfer

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18 through the MCU preferably to the first means for data transfer, IR, or to the radio communication network.

Correspondingly, the other piece of equipment participating in the data transfer, such as the cash register 21 (Figure has an EPOS terminal application, which handles messages it has received through other means of data transfer IR2, in accordance with the layer structure described above.

Figure 5 shows a simplified diagram of a telephone call between the APPLICA- TION and the Mobile Services Switching Centre MSC, which is part of a mobile services network. At step 200, the application sends the telephone number to be called to the MCU of the mobile station 1, which sends to the Mobile Switching Centre MSC the identification data and other data needed for establishing a connection (steps 201, 202 and 203). The switching centre MSC transmits information of the progress of the call (step 204) and the state of the connection (step 205) to the mobile station 1, after which the mobile station 1 sends acknowledg- 15 ment of connection to the MSC (step 206) and to the application 18 (step 207).

For closing the connection, the application 18 sends a close connection command to the MCU of the mobile station 1 (step 208), which sends a close connection request to the Mobile Services Switching Centre (step 209). The MSC sends a a' connection closed acknowledgment to the MCU of the mobile station 1 (step 210).

Finally. the MCU of the mobile station 1 sends to the application 18 information of the closing of the connection (step 211).

In the previous exemplary embodiment of the invention the money was stored in an account, finally located in a money server in a bank. Therefore it was necessary to update the balance in the mobile station and in the bank. In another embodiment of this invention the electric money is stored to the mobile station itself.

When that kind of electric money (also referred as "Digital Cash") is used, e.g. for paying parking fees or phone bills, the corresponding amount of money is cut down from the electric money purse of the mobile station. The "Digital Cash" can be stored e.g. as a code word in mobile stations memory. No link between the 19 payment terminal 21 (Figure 6) and the money server 22 is required at the moment when the payment is made When the "Digital Cash" has run out or more is needed, the electric money purse of the mobile station needs reloading. There are several methods to do that. One method, close to the approach with real money and ATM (Automatic Teller Machine) machines, would be to walk to the nearest "Digital Cash ATM" to download more money from the account. This is not very handy, because it will take some time before these kind of "Digital Cash ATM" machines are widely available. The present invention offers a much more convenient way to do the reloading of "Digital Cash".

Using the SMS service, it is possible to download more "Digital Cash" from the bank account to the mobile station, using a method close to the one described in the previous embodiment of the invention concemrning balance inquiry. The mobile station sends a request to send more "Digital Cash", e.g. as a SMS message, to 15 the money server responsible for the user's account. As a response, suppose the account has balance, the money server sends "Digital Cash" to the mobile station, where it is stored to the memory.

The network, where the mobile station in accordance with the invention is used is not limited to GSM only, GSM is a good example of a system that offers required data transfer possibilities. Particularly the SMS messages available in GSM network are handy, because the normal phone/data channel is not effected when transferring SMS messages.

In addition to payment applications, the method of the invention can also be used for other kinds of applications. For example gathering and presenting other information, such as timetables, stock prices, exchange rates, etc. Each of the previous examples can be implemented in a separate application module, or the wanted functions and applications can be combined to a multi-functional application module for the mobile station.

P:\OPER\GCP\46247.DIV 31/7/98 Figure 7 shows an application in which two mobile stations 1 do communicate with each other by means of the first means of data transfer IR. It is possible to transfer e.g. data and/or speech. Preferably the first means of data transfer IR makes it possible to connect the mobile station 1 also e.g. to a movable PC which has the corresponding means for data transfer IR or to a wireless LAN (Local Area Network).

The method of the invention provides a flexible means for increasing the usability of the mobile station 1. A mobile station 1 in accordance with the invention can make use of various services from suppliers who produce and sell applications 18. For credit card companies, a method like this is one way of reducing misuse of credit cards.

U UU.The invention is not limited to the above described exemplary embodiments only, but i its details can be modified without departing from the scope defined by the attached claims.

Throughout this specification and the claims which follow, unless the context requires otherwise, the word "comprise", and variations such as "comprises" and "comprising", will be understood to imply the inclusion of a stated integer or step or group of integers 20 or steps but not the exclusion of any other integer or step or group of integers or steps.

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I

P \OPER\GCP\46247 DIV 31/7/98 -21- THE CLAIMS DEFINING THE INVENTION ARE AS FOLLOWS: 1. A system for effecting payments, wherein the system comprises: at least one mobile station that includes: an application, means for using the application, and a first means for providing local data transfer; wherein said system for effecting payments further comprises: at least one payment reception terminal which has a second means for providing local data transfer, said second means for providing local data transfer being coupled to said first means for providing local data transfer through a wireless interface; and wherein the application comprises means for transferring data between ~the first means for providing local data transfer and the second means for providing local data transfer through said wireless interface, for registering a payment transaction in the payment reception terminal.

2. A system for effecting payments as set forth in claim 1, wherein the at least one payment reception terminal includes a cash register.

3. A system for effecting payments as set forth in claim 1, wherein each of the first means for providing local data transfer and the second means for providing local data transfer includes an IR transceiver.

4. A system for effecting payments as set forth in claim 1, wherein the data is transferred between the first means for providing local data transfer and the second means for providing local data transfer using one of an ultrasound communication, an electromagnetic induction communication, and a radio communication.

5. A system for effecting payments as set forth in claim 1, wherein the application includes a cash card application.

Claims

6. A system for effecting payments as set forth in claim 1, wherein the application is incorporated in an external application module that is attachably coupled to the at least one mobile station.
7. A system for effecting payments as set forth in claim 6, wherein there is also at least one of a Subscriber Identity Module (SIM) card and another external application module coupled to the at least one mobile station.
8. A system for effecting payments as set forth in claim 6, wherein the external application module includes a plurality of separate applications.
9. A system for effecting payments as set forth in claim 1, wherein the application is included in a Subscriber Identity Module (SIM) module. oo
10. A system for effecting payments as set forth in claim 1, wherein the at least one payment reception terminal includes an Electronic Point of Sale (EPOS) application that is in communication with said second means for providing local data transfer.
11. A system for effecting payments as set forth in claim 1, wherein the application normally resides in a first, passive mode, said application being controllable for operating in a second, active mode of operation, wherein said means for using the application includes a master control unit (MCU) that is coupled to said application, said MCU normally operating in a first, master control state for controlling operations of the at least one mobile station, said MCU being switchable for operating in a second, slave state, wherein said MCU controls the switching of said MCU from said first, master control state to said second, slave state upon said application being set in said second, active mode of operation, and wherein in the second, slave state said MCU operates under the control of said application.
12. A system for effecting payments as set forth in claim 1, wherein the at least one mobile station further comprises a transceiver, said transceiver being bidirectionally P'\OPER\GCP\46247DIV 31/7/98 -23- coupled to a communication network.
13. A method for operating a payment system that includes a first, user terminal and a second terminal, the first, user terminal having at least one application, the method comprising the steps of: entering information into the first, user terminal specifying that a payment be made from the first, user terminal to the second terminal; establishing a communication link from the at least one application to the second terminal through a wireless interface; and registering a payment transaction with at least one of the second terminal and the at least one application.
14. A method as set forth in claim 13, wherein prior to the performance of the registering step, further steps are performed of: entering identification information into the first, user terminal; and in response to the step of entering identification information, the first, user terminal performs a step of: comparing the identification information to prestored identification information to determine if the entered identification information and the prestored identification information are similar; and if they are similar, the registering step is performed. A method as set forth in claim 13, wherein the at least one application has an associated account balance, and wherein the method further comprises a step of decreasing the associated account balance by an amount of said payment transaction.
16. A method as set forth in claim 15, wherein prior to the performance of the decreasing step, further steps are performed of: receiving information representing the associated account balance from a network; and storing the received information representing the associated account balance 9 P.\OPER\GCP\46247 DIV 31/7/98 24 in the first, user terminal.
17. A method as set forth in claim 15, wherein the decreasing step is performed in response to an occurrence of a predetermined time.
18. A method as set forth in claim 13, wherein said second terminal has an associated account balance, and wherein the method further comprises a step of increasing the associated account balance by an amount of said payment transaction.
19. A method as set forth in claim 18, wherein the second terminal has an associated Electronic Point of Sale (EPOS) application, and wherein the step of increasing is performed at least in part by the EPOS application.
20. A method as set forth in claim 18, wherein the step of increasing is performed at least in part by the at least one application.
21. A method as set forth in claim 13, wherein the communication link includes at S least one of an IR communication link, an ultrasound communication link, and an electromagnetic induction communication link.
22. A method as set forth in claim 13, wherein the step of registering is performed by the first, user terminal exchanging enciphered data with the second terminal.
23. A method as set forth in claim 13, wherein prior to the registering step, a step is performed of verifying that an account associated with the at least one application has at least a predetermined balance, and wherein the registering step is performed in response to the performance of the verifying step.
24. A method as set forth in claim 13, wherein the second terminal includes a cash register. I P.\OPER\GCP\46247.DIV 31/7/98 A method as set forth in claim 13, wherein the at least one application resides in a first, inactive mode, wherein prior to the performance of the entering step, further steps are performed of: coupling a controller for the first, user terminal to the at least one application, the controller normally operating in a first, master control state, the controller being switchable for operating in a second, slave state, wherein in the first, master control state, the controller operates as a master controller for controlling operations of the first, user terminal; activating the at least one application for causing the at least one application to operate in a second, active operating mode; in response to the activating step, switching the operation of the controller from the first, master control state to the second, slave state, wherein in the second, slave state the controller operates under the control of the at least one application, and wherein the communication link is established from the at least one application to the second terminal through said controller and said wireless interface. a
26. A method as set forth in claim 13, wherein information indicating a balance of a user account is stored in an external storage device, and wherein further steps are performed of: a user entering information into the first, user terminal requesting that the information indicating the balance of the user account be retrieved from the external storage device; in response to the first, user terminal receiving the user-entered information, communicating a message from the first, user terminal to the external storage device requesting that the information indicating the balance of the user account be provided to the first, user terminal; and providing the information indicating the balance of the user account from the external storage device to the first, user terminal.
27. A method as set forth in claim 13, wherein information indicating a balance of a user account is stored in a memory of the first, user terminal, and wherein further P,\OPER\GCP\46247. DIV 31/7/98 -26 steps are performed of: a user entering information into the first, user terminal requesting that the information indicating the balance of the user account be retrieved; in response to the first, user terminal receiving the user-entered information, retrieving the information indicating the balance of the user account from the memory; and providing the information indicating the balance of the user account to the user.
28. A method as set forth in claim 13, wherein the at least one application relates to a first user account having a first balance, wherein an external storage location stores a second user account having a second balance, and wherein further steps are performed of: the first, user terminal communicating with the external storage location so as to retrieve at least a portion of the second balance from the second user account stored in the external storage location; and increasing the first balance by an amount that is equal to the portion of second balance retrieved from the second user account.
29. A method as set forth in claim 28, and further comprising a step of decreasing the second balance by an amount that is equal to the portion of second balance retrieved from the second user account. A method as set forth in claim 13, wherein the at least one application has an associated account balance, and wherein prior to the establishing step, and in response to the performance of the entering step, a further step is performed of decreasing the associated account balance by an amount of said payment transaction.
31. A method as set forth in claim 13, wherein the at least one application has an associated account balance, and wherein prior to the establishing step, and in response to the performance of the entering step, a further step is performed of storing information representing a value of the payment transaction in a memory of the first, P:\OPER\GCP\46247. DIV 31/7/98 27 user terminal.
32. A method as set forth in claim 13, wherein an external storage location stores information specifying a transaction credit value for the first, user terminal, the transaction credit value being at least as great as a value of said payment transaction, and wherein the method further includes steps of: the first, user terminal sending a message signal to the external storage location requesting that the external storage location provide the information specifying the transaction credit value to the first, user terminal; receiving the message signal at the external storage location; in response to the external storage location receiving the message signal, forwarding the information specifying the transaction credit value to the first, user terminal; receiving the information specifying the transaction credit value at the first, user terminal; and in response to the first, user terminal receiving the information specifying the e°° transaction credit value, storing the information specifying the transaction credit value S. in the first, user terminal. eve* w* *a 20 33. A method as set forth in claim 32, wherein the external storage location is located within a communication network.
34. A method as set forth in claim 32, wherein the message signal includes a Short Message Service (SMS) message. A method as set forth in claim 13, wherein the first, user terminal has an associated account balance, and wherein prior to the entering step, further steps are performed of: providing information representing a credit value from a credit source to the first, user terminal, the credit value being at least as great as a value of said payment transaction; and I P.\OPER\GCP\46247.DIV 31/7/98 -28- increasing a value of the associated account balance by the credit value provided to the first, user terminal.
36. A method as set forth in claim 35, wherein after the step of registering is performed, a further step is performed of decreasing the value of the associated account balance by the value of said payment transaction.
37. A method as set forth in claim 13, wherein the at least one application is included in an external application module that is coupled to the first, user terminal, 10 wherein prior to the entering step, a further step is performed of storing information specifying a credit value in the external application module, and wherein after the registering step is performed, a further step is performed of manipulating the information specifying the credit value so as to decrease the credit value by a value of the payment transaction. @0 0e 0 0 600 0 .0 0 0 0000 *0 0 S 0 00 00 0 00 S 0000 Se 0* 0 00 0S 0000 00** DATED this 3rd day of August, 1998 NOKIA MOBILE PHONES LTD. By its Patent Attorneys DAVIES COLLISON CAVE P \OPER\GCP\46247 DIV 31/7/98 ABSTRACT A system for effecting payments, wherein the system comprises: at least one mobile station that includes: too. an application, 10 means for using the application, and first means for providing local data transfer; wherein the system for effecting payments further comprises: least one payment reception terminal which has a second means for providing local data transfer, the second means for providing local data transfer being coupled to the first means for providing local data transfer through a wireless interface; and wherein the application comprises means for transferring data between ~the first means for providing local data transfer and the second means for S. providing local data transfer through the wireless interface, for registering a payment transaction in the payment reception terminal.