NFC mobile device transactions with a digital artifact

What is this patent about?

'575 is related to the field of mobile payment systems, specifically addressing the challenge of securely conducting transactions using mobile devices. The background involves the increasing use of mobile devices for various payment transactions, including purchasing goods, paying bills, and transferring funds. A key concern is ensuring the security of sensitive user information during these transactions.

The underlying idea behind '575 is to leverage a secure element within a mobile device to handle payment authorization. Instead of directly transmitting sensitive payment information to a point-of-sale device, the mobile device sends a unique identification code to a remote management server. This server then securely transmits the actual payment method to a transaction server, effectively acting as a proxy and shielding the user's financial details from potential compromise at the point of sale.

The claims of '575 focus on a method and a mobile device configured for conducting Near Field Communication (NFC) transactions. The mobile device has a non-browser-based application with a graphical user interface, a wireless transceiver for voice and data, and a secure element with an NFC transceiver. The secure element stores an identification code and a secure element application. Upon detecting an NFC signal, the secure element application transmits the identification code to an NFC terminal, which then relays it to a remote management server. The server then provides the payment method to a transaction server.

In practice, when a user initiates an NFC payment, the mobile device's secure element communicates with the NFC terminal. The secure element transmits the user's identification code, not the actual credit card or bank account details. The remote management server, which securely stores the user's payment methods, then provides the necessary information to the transaction server to complete the payment. After the transaction, the mobile device receives a digital artifact, such as a receipt, for display within the mobile application.

This approach differs from prior solutions by centralizing the storage and management of payment methods on a remote server, rather than storing them directly on the mobile device or transmitting them directly to the point of sale. This reduces the risk of fraud and identity theft, as sensitive payment information is never exposed to potentially compromised point-of-sale systems. The use of a secure element further enhances security by providing a tamper-resistant environment for storing the user's identification code and executing the payment authorization process.