WO2020187448A1

WO2020187448A1 - Method for making financial transactions

Info

Publication number: WO2020187448A1
Application number: PCT/EP2020/025122
Authority: WO
Inventors: Rajesh JANGID
Original assignee: Giesecke+Devrient Mobile Security Gmbh
Priority date: 2019-03-20
Filing date: 2020-03-11
Publication date: 2020-09-24

Abstract

The present invention provides a method for making a financial transaction between a first terminal and a second terminal. The first terminal and the second terminal are having scanners and display therewith (in). The method comprising steps of installing a first payment module in the first terminal and a second payment module in the second terminal. A dynamic cryptographic code is generated by the first payment module according to an input to the first terminal and displaying the dynamic cryptographic code on the first terminal. The dynamic cryptographic code is scanned by the second terminal, thereby generating and displaying a responsive dynamic cryptographic code by the second payment module on the second terminal. The responsive dynamic cryptographic code is scanned by the first terminal, and for authentication, one or more than one rounds of such exchange of cryptographic code may be required to complete financial transaction therebetween.

Description

METHOD FOR MAKING FINANCIAL TRANSACTIONS

Field of the Invention:

[0001] The present invention relates to a method for making financial transactions. More particularly, the present invention relates to a method for making financial transactions between a first terminal and a second terminal.

Abbreviation Used in this Specification:

QR: Quick Response.

APDU: Application Protocol Data Unit.

E-wallet: Electronic Wallet.

POS: Point Of Sale.

HCE: Host card emulation.

NFC: Near-field communication.

Background of the Invention

[0002] Generally, terminals, such as smartphones, tablets, and mobile phones are installed with applications for making financial transactions therethrough. The financial transactions, such as sending online payments, receiving online payments, paying bills and the like where money is being transferred from one account to other account and non-financial transactions, such as balance inquiry, mini statement printing, change of user details, PIN change and cheque book request and the like where no transfer of money happen therebetween are being carried out by these terminals. Contactless payment transactions between terminals are acquiring worldwide attention due to its faster and secure environment they created between the terminals for making financial. Technologies like NFC and EMV facilitates the contactless payment system.

[0003] Specifically, an NFC transaction can be processed by holding or tapping an NFC enabled smartphone to the payment terminal. Upon secure authentication, the NFC-enabled reader in the payment terminal and the smartphone pass encrypted information back and forth to each other to complete the payment. However, for performing an NFC transaction, the smartphone should be enabled with NFC, and a secure authentication like a code or biometric authentication should be carried out during the transaction. Hence smartphones without NFC are not able to perform a contactless transaction. [0004] Further, in some digital transactions, cryptographic codes like QR codes are being used for making a financial transaction. The QR code is a matrix barcode (or two-dimensional barcode), first designed in 1994 for the automotive industry in Japan. The QR code uses four standardised coding modes (numeric, alphanumeric, byte/binary, and kanji) to store data efficiently.

[0005] US2015310421A1 describes a method for performing electronic payment transactions without POS terminals. The method includes the use of a Mobile, an HCE and a QR code. However, in this method, the financial transaction is enabled in a unidirectional transaction between a payee and a receiver.

[0006] WO2018013431 A2 describes an encryption key exchange process using an access device. The device includes usage of Mobile, HCE and QR code. However, in this method, an encryption key is exchange using a QR code and further operations for the financial transaction are carried. Therefore, this method consumes more time and complex. [0007] KR101247387B1 describes a method, apparatus and system for processing command using a QR code. The method enables financial transaction through terminals using the QR code. However, in this method, the financial transaction is enabled in a unidirectional transaction between a payee and a receiver.

[0008] Therefore, there is a need for a method for making financial transactions between two terminals, and which overcomes few or more drawbacks of the prior art. Objects of the Invention:

[0009] An object of the present invention is to provide a method for making the financial transaction between a first terminal and a second terminal. [0010] Particularly it is an object of the present invention is to provide a method for making financial transactions, which enables terminals to carry out financial transactions without NFC or NFC technology.

[001 1] Particularly it is an object of the present invention is to provide a method for making financial transactions, which is simple and quick in operation. [0012] Particularly it is an object of the present invention is to provide a method for making financial transactions, which is economical in operation.

Summary of the invention:

[0013] The object is achieved by an invention as described in the independent claims. Embodiments of the invention are described in dependent claims. The present invention provides a method for making financial transactions between a first terminal and a second terminal. The first terminal and the second terminal are having scanners therein. The first terminal may be a POS terminal, a smartphone, a mobile, a tablet or an electronic device having a display and a visual input interface and the device is capable of performing the financial transaction. The second terminal may also be a smartphone, a mobile, a tablet or an electronic device having a display and a visual input interface and the device is capable of performing the financial transaction. The first payment module and the second payment module is an application provided for performing financial transactions. The first payment module and the second payment modules can be used for making or receiving payment respectively.

[0014] The method comprises steps of installing a first payment module in the first terminal and a second payment module in the second terminal. The first payment module and the second payment module links the first terminal and the second terminal to respective financial accounts of the users of the first terminal and the second terminal (similar to POS and HCE or card). The first payment module generates a dynamic cryptographic code according to an input given to the first terminal. The dynamic cryptographic code is displayed on the first terminal. The dynamic cryptographic code is a one- dimensional or a two-dimensional barcode or a matrix barcode. The dynamic cryptographic code may include an APDU command as performed for contactless payments.

[0015] Furthermore, the dynamic cryptographic code is scanned by the second terminal, thereby generating a responsive dynamic cryptographic code by the second payment module and displaying the same on the second terminal. The responsive dynamic cryptographic code is a QR code having responsive APDU command by the second payment module according to the financial transactions. Also, the responsive dynamic cryptographic code is scanned by the first terminal for authenticating one or more than one rounds of such exchange of cryptographic code (QR code) may be required to complete the financial transaction between the first terminal and the second terminal. Apart from financial transactions, additional information can be exchanged between the first terminal and the second terminal.

Brief Description of the Drawings [0016] The advantages and features of the present invention will be understood better with reference to the following detailed description and claims taken in conjunction with the accompanying drawings, wherein like elements are identified with like symbols, and in which: [0017] Figure 1 shows a flow chart of a method for making financial transactions between a first terminal and a second terminal in accordance with the present invention, and

[0018] Figure 2 illustrates a schematic diagram of the method of figure 1.

Detailed Description of the Invention: [0019] The disclosed embodiments are merely exemplary of the invention, which may be embodied in various forms.

[0020] The present invention provides a method for making the financial transaction between a first terminal and a second terminal. The method enables all types of terminals to carry out financial transactions using the matrix barcodes. Further, the method is simple and quick in operation. Furthermore, the method is economical in operation. [0021 ] Referring now to figure 1 , a flowchart of operations carried out in a method 100 for making financial transactions between a first terminal 210 and a second terminal (not shown) is illustrated. For the brevity of the invention, the method 100 is explained in relation to a schematic diagram of the method 100 shown in figure 2. The first terminal 210 and the second terminal are having a scanner (not shown) therein. The scanner can be a rear camera or a front camera of the first terminal and the second terminal. In the preferred embodiment, the cryptographic scanning is done by using a front camera of the first terminal and the second terminal. [0022] In a preferred embodiment, the first terminal is a POS terminal. The POS receives payments from senders. The POS terminal initiates the contactless financial transaction. In an alternative embodiment, the first terminal 210 can be a smartphone or a mobile or a tablet or any electronic device having a display and an input interface capable of performing financial transactions therethrough. Similarly, the second terminal is a smartphone or a mobile or a tablet or any electronic device having a display and an input interface capable of performing financial transaction therethrough. The financial transaction herein also refers to ticket transactions, in particular to metro ticket or stadium tickets.

[0023] The method starts at step 10. [0024] At step 20, a first payment module is installed in the first terminal 210 (figure 2) and a second payment module is installed in the second terminal. Specifically, the first payment module and a second payment module is an application provided for performing financial transactions. More specifically, the application can be used for making or receiving payment respectively. In the present embodiment, the second payment module is used for making a payment from the second terminal, and the first payment module is used for receiving the payment at the first terminal 210 and vice versa.

[0025] Further, the first payment module is linked with a financial account of a user of the first terminal. Similarly, the second payment module is linked to a financial account of a user of the second terminal. The financial account can be a bank account or an E-wallet (including but not limited to tokenised card/HCE) or any other financial account, which is obvious to a person ordinarily skilled in the art.

[0026] At step 30, the first payment module generates a dynamic cryptographic code 250 according to an input to the first terminal 210. The dynamic cryptographic code is a unique code generated according to an individual (single) financial transaction. The input is given to the first terminal 210 through an input interface of the first terminal. The input is given to the first terminal 210 for the amount to be received from the second terminal. The first payment module includes a set of programs for converting the input to the dynamic cryptographic code 250.

[0027] The dynamic cryptographic code 250 is a one-dimensional or a two-dimensional barcode or a matrix barcode. Specifically, the responsive dynamic cryptographic code is scanned by the first terminal for authenticating one or more than one rounds of such exchange of cryptographic code (QR code) may be required to complete the financial transaction between the first terminal and the second terminal (can be similar to how a contactless EMV payment transaction is performed, including but not limited to service transactions like transit at metro station). The matrix barcode is generalised as a QR code. The dynamic cryptographic code 250 includes an APDU command. The APDU command is a command generated according to the financial transaction made between the first terminal and the second terminal. Further, the dynamic cryptographic code 250 is displayed on the first terminal 210.

[0028] At step 40, the dynamic cryptographic code is scanned by the second terminal. Further, the second payment module reads the QR code for reading the APDU command therein. The second payment module initiates payment from the financial account of the user of the second terminal to the financial account of the user of the first terminal 210 using the QR code having the APDU command therein. Upon initiating payment from the financial account of the user of the second terminal, the second payment module generates a responsive, dynamic cryptographic code. The responsive dynamic cryptographic code is a QR code having a responsive APDU command by the second payment module according to the financial transactions. [0029] At step 50, the responsive dynamic cryptographic code

250 is scanned by the first terminal 210 for authenticating and for completing the financial transaction between the first terminal 210 and the second terminal 220. Further, there may be more such QR codes exchanged between the first terminal 210 and the second terminal 220. The first payment module reads the QR code having the responsive APDU command and generates a confirmation message at the end of the process on first terminal 210. Apart from the financial transactions, additional information can be exchanged between the first terminal

210 and the second terminal 220. [0030] Similarly, financial transactions can be made from the first terminal 210 to the second terminal 220 and vice versa. [0031 ] The method ends at step 60.

[0032] Financial transactions can be made between the first terminal 210 and the second terminal using the method 100. For example, if the user of the second terminal buys a commodity from the user of the first terminal 210, which is worth $28.55. The user of the first terminal 210 may give input to the first terminal to receive $28.55. The first payment module includes a set of programs for converting the input to the dynamic cryptographic code 250. The dynamic cryptographic code 250 is generated and displayed according to step 30. [0033] Upon initiating transfer of $28.55 from the financial account of the user of the second terminal to the first terminal 210, the responsive APDU command describing the initiating transfer of $28.55 from the second terminal to the first terminal 210 is generated, and the responsive dynamic cryptographic code 250 is displayed at the first terminal according to step 40. If the payment of $28.55 is received at the first terminal and the responsive APDU command conveys the same, the first payment module can generate confirmation message displaying "$28.55 is received" according to step 50. It may be obvious to a person ordinarily skilled in the art to enable the first terminal for displaying the confirmation message according to the responsive APDU command.

[0034] The method 100 has an advantage of making financial transactions between the first terminal 210 and the second terminal. The method 100 enables all types of terminals (smartphones like Apple) to carry out financial transactions using matrix barcodes (QR code). Further, the method 100 is simple and quick in operation. Furthermore, the method 100 is economical in operation.

Claims

We claim:

1. A method for making financial transactions between a first terminal and a second terminal, the first terminal and the second terminal are having scanners therewithin, the method comprising steps of:

installing a first payment module in the first terminal and a second payment module in the second terminal;

generating and displaying a dynamic cryptographic code by the first payment module according to an input to the first terminal;

scanning the dynamic cryptographic code by the second terminal, thereby generating and displaying a responsive dynamic cryptographic code by a second payment module on the second terminal; and

scanning the responsive dynamic cryptographic code by the first terminal for authenticating and completing the financial transaction between the first terminal and the second terminal.

2. The method as claimed in claim 1 , wherein the first payment module and the second payment module is an application provided for performing financial transactions.

3. The method as claimed in claim 2, wherein the first payment module and the second payment module can be used for making or receiving payment respectively.

4. The method as claimed in claim 1, wherein the first terminal is a POS terminal, a smartphone, a mobile, a tablet or an electronic device having a display and an input interface capable of performing financial transaction therethrough.

5. The method as claimed in claim 1, wherein the second terminal is a smartphone, a mobile, a tablet or an electronic device having a display and an input interface capable of performing financial transaction therethrough.

6. The method as claimed in claim 1, wherein the first payment module and the second payment module links the first terminal and the second terminal to respective financial accounts of the users of the first terminal and the second terminal.

7. The method as claimed in claim 1 , wherein the dynamic cryptographic code is a one-dimensional or a two-dimensional barcode or a matrix barcode.

8. The method as claimed in claims 1, 2, 4 & 5, wherein the dynamic cryptographic code includes an APDU command.

9. The method as claimed in claims 1, 2, 4 & 5, wherein the responsive dynamic cryptographic code includes a responsive APDU command by the second payment module according to the financial transaction.