WO2013144930A1

WO2013144930A1 - Method and system for making payments using scanned bar codes

Info

Publication number: WO2013144930A1
Application number: PCT/IB2013/052622
Authority: WO
Inventors: Carl Henri KRITZINGER; Marius Marais; Johannes Gerrit GREEFF; Francois Malan Joubert
Original assignee: Fireid Payments (Proprietary) Limited
Priority date: 2012-03-30
Filing date: 2013-04-02
Publication date: 2013-10-03
Also published as: ZA201403697B

Abstract

A method of facilitating a transaction comprising generating a unique transaction identifier which identifies the transaction to be performed between a merchant and a user; the unique transaction identifier is embedded in a barcode, preferably a QR code. An image of the barcode is displayed via a medium to the user wishing to perform the transaction. The medium includes a webpage or a paper receipt for example. Using a scanning application on the user's mobile device, the image of the barcode is scanned using a camera of the mobile device to extract and transmit the unique transaction identifier to an information brokerage service. At the information brokerage service, transaction data is generated which includes payment information. The transaction data is transmitted to the user's mobile device or another computing device. The information brokerage service receives a transaction confirmation message from the user, and transmits payment details to a payment gateway or the merchant.

Description

METHOD AND SYSTEM FOR MAKING PAYMENTS USING SCANNED

BAR CODES

BACKGROUND OF THE INVENTION

THIS invention relates to a method and system for making payments using scanned barcodes. The invention has application to both online shopping and conventional retail transactions.

The standard online shopping experience is mostly quite easy, but becomes very cumbersome at the "checkout" part of the process, where e- commerce sites frequently require the user to register an account with the site before the order process can be completed. The account registration process frequently requires the selection of a new password to control access, as well as verification of the user's email address. Once the user has registered, payment details frequently have to be filled in manually, with only the biggest sites able to afford the infrastructure to store credit card details securely. Some sites also offer EFT payments and other options, but these methods all involve manual steps, requiring additional authentication to other external services.

It is an object of the invention to provide an alternative method of facilitating payments. SUM ARY OF THE INVENTION

According to the invention there is provided a method of facilitating a transaction, the method including: generating a unique transaction identifier associated with a transaction to be performed between a merchant and a user; embedding the unique transaction identifier in a barcode; displaying an image of the barcode via a medium accessible to a user wishing to perform a transaction; using a scanning application on a user's mobile device, scanning the image of the barcode using a camera of the mobile device, to extract the unique transaction identifier from the barcode and to transmit the unique transaction identifier to an information brokerage service; and at the information brokerage service, generating transaction data including payment information, transmitting the transaction data to the user's mobile device or another computing device, receiving a confirmation message from the user; and transmitting payment details to a payment gateway or the merchant.

The scanning application is preferably installed on the user's mobile device prior to commencement of the transaction and the scanning of the barcode, but can also be installed during the transaction process.

The account information of the user is preferably part of a user profile created by the user, and may include the user's name, address, contact information, and bank account, credit card or other payment details for use in transactions. The user profile may be stored on the user's mobile device itself or by a secured service.

The unique transaction identifier is preferably generated by the information brokerage service in response to a request by a merchant offering a transaction to one or more users.

The method preferably includes configuring the barcode so that an existing barcode scanning application on the mobile device can transfer the unique transaction identifier to the mobile application.

The barcode used is preferably a QR code (Quick Response code) optimised for use with mobile phones and similar devices equipped with cameras.

The barcode preferably contains a URL, which itself contains the unique transaction identifier.

The payment details may include one or more of a credit card number, a billing address, a shipping address and an e-mail address.

Further according to the invention there is provided a system for facilitating transactions according to the method defined above, the system comprising an information brokerage service including data storage, the information brokerage service being operable to generate a unique transaction identifier associated with a transaction to be performed between a merchant and a user, to receive data representative of a unique transaction identifier scanned by mobile device of a user wishing to conduct a transaction with a merchant, to generate transaction data including payment information, to transmit the transaction data to the user's mobile device or another computing device, to receive a transaction confirmation message from the user and to transmit payment details to a payment gateway or the merchant. BRIEF DESCRIPTION OF THE DRAWINGS

Figures 1 to 3 are simplified schematic diagrams showing the operation of a system according to the invention in three different modes of operation; and

Figure 4 is a flow chart summarising the operation of the system.

DESCRIPTION OF PREFERRED EMBODIMENTS

Making Mobile Payments

The mobile phone has become a ubiquitous device that most people carry around every day. Modern phones, particularly but not exclusively so- called smartphones, commonly have a built in camera and have the ability to install and run applications downloaded from third parties. The invention leverages this capability by providing a specialized Mobile Payment and Identity Application (referred to below as the "mobile app"), installable on a mobile phone. It should be appreciated that the invention is not limited to mobile phones as such, but could be used with other mobile computing devices with the necessary functionality, such as tablets and the like.

This mobile app is tied to an Information Brokerage Service, which is authorized to transfer information about transactions, including any user profile and payment-related information necessary to facilitate the transaction such as personal user details for account creation, from a user's accounts, either by use of a credit card, direct banking integration, various forms of virtual currency, vouchering systems or similar.

In addition to various other functions, the mobile app includes the ability to scan a barcode using the phone's camera. A barcode is a visual representation of a piece of data, optimized for electronic reading through an imaging device. An example of a modern barcode is a QR code (trade mark). QR codes are a type of matrix or two-dimensional barcode specifically optimized for rapid scanning with devices such as mobile phones.

Such QR (Quick Response) barcodes are frequently used in advertising to provide users with the ability to follow up and gather more information on the subject of an advertising campaign through the web browser on their mobile phones. Frequently this information is completely static, serving mostly as an extended brochure for the products or services offered. On the other hand, sites offering the purchase of the item advertised experience the same pitfalls as mentioned above with reference to a standard online shopping process.

The traditional use of QR codes is to contain a website URL meant to be accessed via a mobile phone. For example, the value "http://www.fireid.com" can be encoded in a QR code, causing the mobile phone's barcode scanner to retrieve the value "http://www.fireid.com" directly from the code and launching the mobile phone's web browser to access the website hosted at that location. Currently URLs are the type of value most commonly used in advertising, but it is possible to encode any value in a QR code, such as the values "Hello, my name is Steve" or "8587362458726345823", to give just two examples.

By generating a value in the form of a large random number and embedding the value in a QR code, it becomes possible to link values from any system capable of displaying the code to a mobile phone. Examples of such systems may be a website, a Point-of-Sale terminal, a billboard, a T- shirt, a paper utility bill, etc.

By enabling the Mobile Payment and Identity application to scan barcodes such as QR codes, it becomes possible to securely link the mobile app to a transaction represented by the QR code across systems. For example, it is now possible to scan a QR code on a website and securely link the website session with the mobile app. Similarly it is possible to scan a QR code on a printed utility bill to link the mobile app with the account and settlement represented by the bill. Similarly, a QR code on an advertisement for a fruit store can now not only represent the URL of the store's website, but also the purchase of specific items, like five oranges and four apples from the store for next-day delivery.

This is accomplished by registering a transaction with the Information Brokerage Service, at which point the Information Brokerage Service returns a secure identifier which uniquely identifies the transaction. This identifier is converted to a QR code and displayed where it can be scanned by the mobile app. The mobile app extracts the identifier from the QR code, requests the transaction details from the Information Brokerage Service over a standard secure communications channel as is provided by the mobile phone, and displays the information to the user on the mobile phone. The user is then provided with an option to complete the transaction or cancel it.

Ensuring interoperability with existing barcode scanners

Due to the prevalence of QR codes, many users already have a barcode application on their mobile phone and are used to scanning QR codes to learn more about a product or service. These barcode apps do not understand the secure identifier contained the Information Brokerage Service's barcodes. Not knowing what to do with the information, the app simply displays it to the user. The user is likely to become confused by this and to give up.

In response to this problem, it is possible to craft a specially formed QR code that contains a URL, which itself contains the secure identifier required. For instance, instead of the identifier value "xxxyyyzzz", the QR code contains a URL of the format "http://qr.fireid.com/xxxyyyzzz". Third-party or built-in barcode apps will recognize the QR code as a URL and automatically open the URL in the mobile web browser. The website located at the URL will attempt to detect the Mobile Identity and Payment app on the phone, automatically launching it as if the code were scanned from inside the Mobile Identity and Payment app.

If the app is not found, the website displays information on the app required to open the code and allows the user to download and install it. The user installs the correct application and rescans the code. The Mobile Identity and Payment app recognizes the specialized URL and then does not open the web browser, but rather extracts the secure identifier and continues as described above.

Registration of a transaction may be performed in real time, i.e. intended to be acted upon in a short space of time such as a few minutes, or asynchronously, for instance intended to be acted upon in a longer space of time, such as a couple of weeks or months. Similarly a transaction may be registered as a "use-once" transaction, expiring as soon as acted upon as in the case of a user-specific online shopping experience, or as a "many- use" transaction, allowing numerous uses. An example of the latter would be a billboard offering the purchase of five oranges, which may be acted upon by many users over the course of a couple of days.

At the time of registering a transaction, a merchant would supply all the information necessary to identify the transaction to the user, for example a full description of the products or services, the total price, merchant branding resources, as well as all the information the merchant requires from the user, for example credit card details and an email address.

Once a user acts upon a transaction by scanning the barcode and accepts the transaction on his or her mobile phone, the mobile application securely instructs the merchant or payment gateway to proceed with the transaction. The mobile application may optionally require the user to enter a PIN or password before confirming the transaction to ensure that only the user is in control of his or her mobile phone.

For example, in the case of a transaction requiring delivery of physical goods, the mobile application would forward the user's billing and shipping addresses to the merchant, whereas in the case of a digital download, the mobile application may inform the merchant of the user's e-mail address or other relevant information.

The operation of the method and system of the invention is summarised concisely below:

1. The User installs the Mobile Payment and Identity Application (mobile app) on his or her phone.

2. The mobile app generates a user profile which is associated with the User's identity and payment details (e.g. bank account, credit card or similar details).

3. The Merchant wishes to generate a paper bill or Point-of-Sale payment option for a product or service, produce a "Donate to a charity" T-shirt, billboard or poster, or advertise a specific product or set of products for a price, complete an online ordering checkout, etc.

4. The Merchant requests a barcode from the Information Brokerage Service.

a. The Merchant supplies the Information Brokerage Service with the critical details of the payment, which include the Merchant's details, the total amount required to effect the payment, a suitable breakdown of the pricing, etc.

b. For regular account bills, information on the specific account like the account number or street address for a garden service, etc. is also supplied. c. For payments which do not yet have a specific account or User associated, other relevant descriptive information is added, as well as a list of information required from the User for the payment to be completed, for example shipping and billing addresses for a physical delivery, etc.

d. The Information Brokerage Service generates a QR barcode containing a unique transaction identifier for the payment and returns it to the Merchant.

e. The Merchant embeds this barcode into the bill, or produces it on the billboard, poster, T-shirt, POS terminal, etc. For payments aimed at a specific User, the User receives the bill or is directed to scan the code at the POS terminal and uses their application to scan the barcode with their mobile phone.

a. The application loads the unique transaction identifier for the bill from the barcode.

b. The application uses this unique identifier to retrieve the bill details from the Information Brokerage Service.

c. If the User does not have the mobile app installed, but rather scans the code with another third-party or built-in barcode scanning app, a website is opened which guides the User through installing the mobile app, at which time the User is requested to re-scan the barcode with the mobile app. The application displays the details of the payment and prompts the User as to whether they wish to effect the payment.

a. If the User confirms the payment, the application confirms the transaction with the Information Brokerage Service.

b. The mobile app transmits the required profile information to the merchant or payment gateway.

c. This action associates the User's identity with the previously anonymous payment. 7. The Merchant continues with its standard purchasing process to complete the transaction, for example shipping items to the User, settling his or her account, completing the retail POS transaction, or create a new account for the user with the user profile.

The above process is summarised graphically in the flow chart of Figure 4.

A number of applications of the method and system of the invention are now described below by way of non-limiting example.

Example 1 : Online Shopping

A user comes across an online shop. He or she browses the products available and selects a few, adding them to his or her virtual shopping cart. Having added all his or her required items, he or she selects the shop's "checkout" option. On the checkout screen a QR payment code is displayed.

(The online shop registers the transaction with the Information Brokerage Service, indicating that it is a once-off transaction, and will require the user's physical address for delivery and email address for delivery of a tax invoice. The Information Brokerage Service returns a QR barcode for the transaction which is displayed on the website.)

The user launches the Mobile Payment and Identity application on his or her mobile phone and scans the displayed barcode. The mobile app shows the user the products he or she has selected, the total price and that the merchant will be advised of his or her physical and e-mail addresses, and requests the user to confirm the transaction.

(The mobile app has extracted the identifier from the QR code and retrieved the transaction details associated with the identifier and displayed them inside the mobile app.) The user authorises the transaction, optionally using a PIN to confirm his or her identity. The website on the user's computer automatically shows him or her that the payment has been accepted, shows the user where his or her goods will be delivered and e-mails the user a copy of his or her tax invoice. The user does not have to perform any further actions, but has the option to update his or her profile details, such as delivery address or other details the merchant might require. The user closes the web browser and receives his or her goods the following day.

(The mobile app has instructed the Information Brokerage Service that the transaction is completed and transmitted the required profile details to the merchant. The merchant processes the payment, adds the order to its shipping queue with the correct delivery address and emails the user a copy of his or her tax invoice. If the user does not already have an account at the merchant, an account is automatically created for the user and the user is emailed with login details.)

The above process is represented concisely in the schematic diagram of Figure 1.

It can be noted that the Information Brokerage Service will typically be implemented by means of a server with an associated database, which can communicate with a merchant server and the user's mobile device using API (application programming interface) calls transmitted over a mobile telephone network or other data network.

Example 2: Municipal service bill

A user receives a municipal bill outlining the charges for the user's residential property for the month, indicating the amount owed. At the bottom of the bill is printed a quick payment QR code.

(The municipality registers the transaction with the Information Brokerage Service, indicating that it is a once-off transaction, or the transaction is retrieved from a list of transactions exposed by the municipality. The Information Brokerage Service returns a secure identifier for the transaction. The identifier is converted to a QR code and printed at the bottom on the user's paper bill. The bill is then mailed to the user.)

The user launches the Mobile Payment and Identity application on his or her mobile phone and scans the code. The mobile app shows the user the total of the municipal charges and asks the user to confirm the transaction.

(The mobile app has extracted the identifier from the QR code and queried for the transaction details associated with the identifier from the Information Brokerage Service. The Information Brokerage Service obtains the current outstanding amount from a municipal accounts service, and transmits this data to the mobile app.)

The user authorises the transaction, optionally using a PIN to confirm his or her identity. The user leaves the bill on his or her kitchen counter and continues with his or her evening.

(The mobile app has instructed the Information Brokerage Service to complete the transaction, and transmitted the required payment details to a municipal accounts service. The municipality marks the account as settled.)

A week later the user comes across the same bill, not remembering whether he or she paid it or not. The user launches the mobile app and scans the code again. The mobile app informs the user that that bill has already been paid the previous week. The user discards the bill and continues with his or her day.

(The mobile app has extracted the identifier from the QR code and retrieved the transaction details associated with the identifier. The Information Brokerage Service informs the app that the transaction was already completed a week earlier. This information is displayed inside the mobile app.)

The above process is represented concisely in the schematic diagram of Figure 2.

Example 3: Donating

A user sees someone with a "Save the Rhinos!" T-shirt on the street. The shirt bears a QR code, along with the text: "Donate $10 to the Rhino fund".

(The Rhino fund has registered a transaction for $10 with the Information Brokerage Service, indicating that it may be actioned multiple times, and that it would like the e-mail addresses of the users who scan the code in order to send them a newsletter to explain what their donation is used for. The Information Brokerage Service returns a barcode for the transaction which is added to the T-shirt design. A substantial number of T-shirts, say 10 000, are printed and sold.)

Intrigued, the user launches the mobile app and scans the QR code on a T- shirt. The app shows the user that $10 will be donated to the Rhino fund and that the fund will be advised of his or her e-mail address, asking the user to accept the transaction.

(The mobile app has extracted the identifier from the QR code and retrieved the transaction details associated with the identifier and displayed them inside the mobile app.)

The user authorises the transaction, optionally using a PIN to confirm his or her identity. The user continues eating his or her ice cream. Back at the user's office, he or she receives an e-mail from the Rhino fund thanking him or her for the contribution and showcasing some of the work the fund does with rhinos. (The mobile app has instructed the Information Brokerage Service that the transaction is completed and transmitted the required profile details to the Rhino Fund. The fund processes the payment and e-mails the user, thanking him or her for the contribution.)

Another user sees the interaction on the street, scans the QR code and goes through the same experience.

Example 4: Magazine advertisement

A user pages through a magazine and sees a special offer from an online fruit store for five oranges and four apples for $2. The ad contains a QR code next to the offer, explaining that only 100 offers will be honoured.

(The fruit store has registered the transaction with the Information Brokerage Service, indicating that it can only honour the transaction 100 times, and that the user's physical and e-mail addresses will be required. The secure identifier returned by the Information Brokerage Service was converted to a QR code, added to the advertisement layout and printed in the magazine.)

Not near his or her computer, the user scans the QR code using the Mobile Payment and Identity app on his or her phone. The app shows the user the transaction details and advises that the merchant will be informed of his or her physical and e-mail addresses, asking the user to confirm the transaction.

(The mobile app has extracted the identifier from the QR code and retrieved the transaction details associated with the identifier and displayed them inside the mobile app. The Information Brokerage Service has checked how many times the transaction has been accepted and determined that the number of transactions is less than 100.) The user authorises the transaction, optionally using a PIN to confirm his or her identity. That evening the user receives an e-mail from the merchant confirming the order and introducing the other products and services the merchant offers. The next day the user receives his or her fruit.

(The mobile app has instructed the Information Brokerage Service that the transaction has been completed and transmitted the required profile details to the merchant. The Information Brokerage Service increments the number of times the transaction has been accepted, ensuring that it will not be allowed more than 100 times. The merchant processes the order, adds the order to its shipping queue with the correct delivery address and e- mails the user a copy of his or her tax invoice, along with an introductory message on the merchant's products and services.)

The above process is represented concisely in the schematic diagram of Figure 3.

From the above non-limiting examples, which have been selected to provide an indication of the wide application of the method and system of the invention, it can be seen that the invention has application to numerous different types of transaction, from streamlining purely online transactions to Point of Sale purchases, and a number of possible hybrid transactions involving one or more steps in which e-mail (or other) messages are sent to the user. Fundamentally, however, the invention makes it possible to conduct e-commerce transactions securely and easily using a mobile phone or other mobile device, without the need for a computer and without having to repeatedly set up accounts with merchants.

Claims

1. A method of facilitating a transaction, the method including: a. generating a unique transaction identifier associated with a transaction to be performed between a merchant and a user; b. embedding the unique transaction identifier in a barcode; c. displaying an image of the barcode via a medium accessible to a user wishing to perform a transaction; d. using a scanning application on a user's mobile device, scanning the image of the barcode using a camera of the mobile device, to extract the unique transaction identifier from the barcode and to transmit the unique transaction identifier to an information brokerage service; and e. at the information brokerage service, generating transaction data including payment information, transmitting the transaction data to the user's mobile device or another computing device, receiving a transaction confirmation message from the user; and transmitting payment details to a payment gateway or the merchant.

2. A method according to claim 1 wherein the scanning application is installed on the user's mobile device prior to commencement of the transaction and the scanning of the barcode.

3. A method according to claim 1 wherein the scanning application is installed on the user's mobile device during the transaction process.

4. A method according to any one of claims 1 to 3 wherein the account information of the user is part of a user profile created by the user, including one or more of the user's name, address, and contact information, and one or more of the user's bank account, credit card or other payment details for use in transactions.

5. A method according to any one of claims 1 to 4 wherein the user profile is stored on the user's mobile device.

6. A method according to any one of claims 1 to 4 wherein the user profile is stored by a secured service.

7. A method according to any one of claims 1 to 6 wherein the unique transaction identifier is generated by the information brokerage service in response to a request by a merchant offering a transaction to one or more users.

8. A method according to any one of claims 1 to 7 including configuring the barcode so that an existing barcode scanning application on the mobile device can transfer the unique transaction identifier to the mobile application.

9. A method according to claim 8 wherein the barcode used is a QR code (Quick Response code) optimised for use with mobile phones and similar devices equipped with cameras.

10. A method according to claim 8 or claim 9 wherein the barcode contains a URL, which itself contains the unique transaction identifier.

11. A method according to any one of claims 1 to 10 wherein the payment details include one or more of a credit card number, a billing address, a shipping address and an e-mail address.

12. A system for facilitating transactions, the system comprising an information brokerage service including data storage, the information brokerage service being operable to generate a unique transaction identifier associated with a transaction to be performed between a merchant and a user, to receive data representative of a unique transaction identifier scanned by mobile device of a user wishing to conduct a transaction with a merchant, to generate transaction data including payment information, to transmit the transaction data to the user's mobile device or another computing device, to receive a transaction confirmation message from the user, and to transmit payment details to a payment gateway or the merchant.