WO2018185787A1

WO2018185787A1 - A system and method of usage of a smart card for cashless transaction

Info

Publication number: WO2018185787A1
Application number: PCT/IN2018/050200
Authority: WO
Inventors: Subasree VENKATESAN
Original assignee: Venkatesan Subasree
Priority date: 2017-04-07
Filing date: 2018-04-07
Publication date: 2018-10-11

Abstract

The invention provides a system and method for cash transaction digitally between two users. The system includes a smart card by means of which a user can transfer cash digitally to another user when the first user is in close proximity of the smart card. The card contains a communication chip which is capable of receiving user specific details such as, name, age, address, and photograph along with the required cash from a user device. The loading of cash to the smartcard is carried out digitally via user device, which is in communication with the authorized bank. Said Bank assigns each and every smart with a unique ID and associate with the respective user device.

Description

Title of Invention : A System and Method of Usage of a

Smart Card for Cashless Transaction

Technical Field

[1 ] The field of invention generally relates to a method of digital transaction, more specifically, the invention provides a system and method of using a smart card that is capable of communicating with a mobile application and helps user in achieving cashless transaction.

Background Art

[2] Digital mode of money transaction has enormous benefits in our day to day life, making life simpler as one no longer needs to take along rolls of cash or stand in a long queue in front of an ATM machines for money withdrawals. All paperless transactions are kept a track of in terms of written records, thereby helping people to have a clear idea about their spending and maintain the budget accordingly. It also helps in filing for income tax returns; if the need of an inspection arises people can easily interpret their expenditures. Moreover, there are provisions of getting discounts when one goes digital in several entities such as service tax, fuel, insurance etc. Although it might not seem much profitable, but paying digitally eventually wards off the worries of having change (petty cash) or getting it back from the other side.

[3] In spite of several advantages, there are certain limitations in the existing methods of digital payment. Usage of mobile wallet methods like E Wallet, Net Banking, UPI and the like requires at least a Smartphone or a Computer system. Also, existing systems are more suitable for bigger transactions as the service charges are pretty high. According to Internet Live Stats, world has a low internet penetration of 34.8% (2016) and only 26.3% of all mobile phone users have a Smartphone (2015).

[4] Furthermore, compulsory requirement of a Smartphone or Computer may turn problematic at times because the phone or the system has to be constantly charged (may not be possible during long distance travelling and other similar situations) and cellular phone should always be in the connectivity range to get the OTP. If the phone battery dies or becomes out of coverage and a user is in the middle of an urgent transaction, it might be a disaster. Payment using mobile wallets further requires a good internet connection in absence of which the applications are unreachable.

[5] On the other hand, use of plastic money (credit cards, Debit cards) requires a point of sale (POS) which may not be available sufficiently for the transaction. Moreover, there is a high risk of identity theft to occur with these existing methods of digital payment. Another major problem with these methods is remembering the PIN code, user id or password.

[6] Hence, to overcome the above mentioned problems we need a cashless payment method where all above shortcomings are addressed and digital payment becomes popular among people of various age groups including the non tech-savvy ones.

Summary of Invention

[7] The present invention provides a system for cashless transaction; the system comprises a smart card disposed with a memory chip and a communication chip, a first user device and a second user device. The memory chip is configured to store at least one user specific detail and cash details whereas the communication chip is configured to receive the user specific details and cash details from the first user device.

[8] Further, both the first user device and second user device are configured to establish communication with the communication chip; first user device is configured to send data to the communication chip whereas second user device is configured to receive data from the communication chip. The communication chip is further configured to send user specific details to the second user device and carry out at least one transaction with the second user device.

Brief Description of Drawings

[9] This invention is illustrated in the accompanying drawings, throughout which, like reference letters indicate corresponding parts in the various figures.

[10] The embodiments herein will be better understood from the following description with reference to the drawings, in which: [1 1 ] Fig. 1 depicts/illustrates the system network of cashless transaction through a smart card, in accordance with an embodiment of the invention.

[12] Fig. 2 depicts/ illustrates the component and working details of a user device used for transaction, in accordance with an embodiment of the invention.

[13] Fig. 3 depicts/illustrates the method of cash transaction between a Smartcard and a user terminal, in accordance with an embodiment of the invention.

[14] Fig. 4 shows flowchart depicting/illustrating a method of digital payment using the smart card, in accordance with an embodiment of the invention.

Description of Embodiments

[15] The embodiments herein and the various features and advantageous details thereof are explained more fully with reference to the non-limiting embodiments that are illustrated in the accompanying drawings and / or detailed in the following description. Descriptions of well-known components and processing techniques are omitted so as to not unnecessarily obscure the embodiments herein. The examples used herein are intended merely to facilitate an understanding of ways in which the embodiments herein may be practiced and to further enable those of skill in the art to practice the embodiments herein. Accordingly, the examples should not be construed as limiting the scope of the embodiments herein.

[16] The embodiment here in below provides a system and method for cash transaction digitally between two users. The system includes a smart card by means of which a user can transfer cash digitally to another user when the first user is in close proximity of the smart card. The card contains a communication chip which is capable of receiving user specific details such as, name, age, address, and photograph along with the required cash from a user device. The details received are encrypted into the said chip to make the transaction secure. The loading of cash to the smartcard is carried out digitally via user device, which is in communication with the authorized bank. Said Bank assigns each and every smart with a unique ID and associate with the respective user device. Additionally, the loaded cash may have an expiry date till when, the cash is valid for transactions. [17] In the present disclosure Smartcard may be anything which is loaded with user specific details along with the digital cash and is capable of transferring cash to other user devices in proximity. Generally, smart card is pocket-sized light weighted tag. In the present disclosure user device may be any device that is capable of loading cash digitally to a Smartcard and act as a Point of Sale (POS) for authenticating said card details, then accepting the cash transaction. For example, user device may be a Smartphone, a computer system, a tablet and the like.

[18] In the present disclosure processing unit may be an electronic circuitry embedded inside the Smartcard for executing instructions of a computer program for performing basic operations specified by the instructions.

[19] In the present disclosure communication chip may be a family of electronic circuits capable of sending/receiving data to/from the user device

[20] Referring now to the drawings, where similar reference characters denote corresponding features consistently throughout the figures, there are shown preferred embodiments.

[21 ] Fig 1 .depicts/illustrates a system network 100 configured to showcase the summarized method of the digital transaction with the aid of a Smartcard 140 containing communication chip 145 between two user terminals. User terminal-l 1 10 includes an individual 1 14 and a user device 1 16, similarly user terminal-ll 120 includes second individual 124 and second user device 126. The communication chip 145 communicates to the user terminal 1 10 and second user terminal 120.

[22] In one embodiment, the communication chip 145 may be a Bluetooth low energy (BLE) chip which communicates with the Bluetooth module of a user device for enabling the transaction. In another embodiment, the communication chip 145 may be a Wi-Fi chip.

[23] To elaborate the system 100, initially the first user device 1 16, which is in communication with the bank 130, loads cash into the Smartcard 140 along with other user specific details. Once the smart card 140 is loaded with user specifics and the cash, the bank 130 assigns the smart card 140 with a unique ID and associates said ID with the first user terminal 120.

[24] Now, when the first user 1 14 with the first user devicel 16 wants to trade with a second user 124 with the second user device, the first user 1 14 uses his/her smart card 140 to pay. The communication chip 145 of the smart card 140 initiates the communication with the user terminal-ll 120 when said chip 145 is in a close proximity of the user terminal-ll 120.

[25] Further, the second user device 126 of the user terminal-ll 120 will be provided with the specific details of the first user 1 14 along with the photograph of the first user 1 14, the second user 124 may match the received photograph with the physical person (first user) 1 14 and complete the transaction.

[26] In one embodiment, close proximity may be a pre specified distance between the smart card 140 and the user terminal-ll 120. User terminal-ll 120 authenticates the details associated with the said card 140, accepts the transaction and the update about the transaction is automatically sent to the bank 130. The bank 130 further sends an alert to user terminal-l 1 10 indicating the usage of stored cash.

[27] In one embodiment, user terminal-ll 120 may be any ordinary individual with a digital device such as Smartphone, tablet and like. When the Smartcard 140 associated with first user 1 14 is within the specified range of distance from the user terminal-ll 120, digital transfer of the cash from Smartcard 140 to the user terminal-ll 120 is accomplished.

[28] In another embodiment, user terminal-ll 120 may be a point of sale (POS).

When a cardholder goes for paperless transaction at any retail locations such as a mall, a restaurant and like, the Smartcard 140 is brought within the specified distance from the POS.

[29] In one embodiment, the pre specified distance may range from 0.5 meters to 1 .0 meters.

[30] Fig 2. depicts/illustrates various components embedded inside the user device (1 16/126) and working details of the same. The user device (1 16,126) comprises a processor(s) 21 1 that executes the instructions given by the memory unit 212 where, the memory unit 212 stores all the instructions and other related data, an input/output unit 213 for sending (output) and receiving (input) messages, a display unit 217 consisting of a user interface and a communication module 215 designed to communicate with an external device, which is a smartcard.

[31 ] In one embodiment, the communication module 215 may be a Bluetooth module. In another embodiment, the communication module may be a Wi-Fi module.

[32] Further, the user device (1 16/126) is configured with an authentication module 216 that is used to authenticate the details of the smartcard, in detail, the authentication module 216 activates along with the communication module 215, that is, when the smartcard comes in close vicinity of the user device (1 16/126), the authentication module 216 activates. The details received by the user device are crosschecked with the physical cardholder, if the photograph and other details of the cardholder matches with the user specific details displayed on the user device (1 16/126), the authentication module 216 initiates the transaction process based on second user confirmation.

[33] In another embodiment, an OTP module 218 may be embedded in the user device (1 16/126) which is configured to receive one time password from the authorized bank to complete the transaction.

[34] Fig 3. depicts/illustrates a system 300 configured to describe the transaction between the smartcard 140 and the user device 126. As it is already discussed that, the smartcard 140 is embedded with communication chip 145 and a processing unit 142 where, the processor 142 fetches instructions from a memory chip and executes them.

[35] To elaborate the system 300, the user specific details 340, photograph 350 and the cash details 360 are stored in memory chip. When the smartcard 140 comes in proximity to the user terminal-ll/POS 120, the user specific details 340 and the photograph 350 is transferred to the user terminal-ll 120 with the aid of communication chip 145.

[36] After receiving the said details (340, 350) by the user terminal-ll/POS 120, the user terminal-ll 120 verifies the data associated with the smartcard 140 by comparing it with the physical person or the cardholder. The transaction completes once all details are verified and the cash is received. The received cash details are sent to the authorized bank from where cash deduction notification is sent to the user deice of the card holder.

[37] The foregoing description of the specific embodiments will so fully reveal the general nature of the embodiments herein that others can, by applying current knowledge, readily modify and/or adapt for various applications such specific embodiments without departing from the generic concept, and, therefore, such adaptations and modifications should and are intended to be comprehended within the meaning and range of equivalents of the disclosed embodiments. It is to be understood that the phraseology or terminology employed herein is for the purpose of description and not of limitation. Therefore, while the embodiments herein have been described in terms of preferred embodiments, those skilled in the art will recognize that the embodiments herein can be practiced with modification within the spirit and scope of the embodiments as described herein.

Claims

[Claim 1 ] 1 . A system for cashless transaction, said system consisting: a smart card; a memory chip disposed in said smart card characterized in that said memory chip configured to store at least one user specific detail and cash details; a communication chip disposed in said smart card characterized in that said communication chip configured to receive said user specific details and cash details from a first user device; a first user device configured to establish communication with said communication chip such that said first user device is able to send data to said communication chip; a second user device configured to establish communication with said communication chip such that said second user device is able to receive data from said communication chip; and said communication chip configured to, receive said user specific details and cash details from said first user device; send said user specific details to a second user device; and carry out at least one transaction with said second user device.

[Claim 2] The system as claimed in claim 1 wherein said second user device is configured with, a display unit configured to display said user specific details; and an authentication module configured to verify said user specific details sent from said smart card.

[Claim 3] The system as claimed in claim 1 wherein said communication chip may be a Bluetooth low energy chip.

[Claim 4] The system as claimed in claim 1 wherein said communication chip may be a WiFi chip.

[Claim 5] The system as claimed in claim 1 wherein said smart card is associated with said first user device through a unique identifier assigned by an authorized bank.

[Claim 6] The system as claimed in claim 1 wherein said user specific details may be name, age, address, photograph and the like.

[Claim 7] The system as claimed in claim 1 wherein said authentication module requires user of second user device to manually cross check displayed said user specific details with physical user of said first user.

[Claim 8] A method for cashless transaction, said method comprising: loading cash and at least one user specific detail to a smart card from a first user device; storing of said user specific detail and cash details in a memory chip disposed on said smart card; sending said user specific details to a second user device via communication chip disposed on said smart card; and initiating at least one transaction with said second user device.

[Claim 9] The method as claimed in claim 8 further comprising of authentication of said user specific details by said second user device.

[Claim 10] The method as claimed in claim 8 wherein said communication module may be a Bluetooth low energy chip.

[Claim 1 1 ] The method as claimed in claim 8 wherein said smart card is associated with said first user device through a unique identifier assigned by an authorized bank.

[Claim 12] The method as claimed in claim 8 wherein said user specific details may be name, age, address, photograph and the like. [Claim 13] The method as claimed in claim 8 wherein said authentication requires user of second user device to manually cross check displayed said user specific details with physical user of said first user.