WELLESLEY, MA--(Marketwire - Feb 20, 2013) - Paydiant, the leading white-label mobile payment, mobile wallet and offer redemption platform, today announced the grant of a patent from the U.S. Patent and Trademark Office (USPTO). U.S. Patent No. 8,380,177, granted on February 19, 2013, describes a mobile contactless payment and mobile wallet solution for conducting payments in store, online and for pay-at-the-table transactions.
The patent details how a mobile device can be used to conduct payment and other transactions using any number or type of accounts including credit, debit, gift, deposit, checking and loyalty accounts. The solution utilizes a unique transaction tokenization approach where a "checkout token" captured via key entry, image scanning, NFC, RFID, Bluetooth or other technologies is used to associate an end user and their payment accounts with a transaction.
Paydiant's approach, as described in this patent, also provides a number of unique benefits to participants leveraging the platform. For example, the architecture provides a number of security benefits and lowers the risk of fraud by never storing a customer's actual account credentials on the mobile device itself and never passing them through a retailer's point-of-sale (POS) system. The solution also does not link an actual payment account credential to a 2D code or other tokens which is then scanned at the point-of-sale -- a common approach that is highly vulnerable to fraud since a copy or screen grab of the code can be used to make payments.
Finally, the patented solution enables a completely tailored customer experience where the mobile wallet can suggest the most desirable account to use for a given transaction, and present offers to the consumer based on user, merchant or wallet-issuer specified rules or preferences. This provides users with better payment options and retailers and banks with the ability to optimize the way their customers use their payment accounts, and creates the opportunity for new marketing-related revenue streams.
"This patent describes the optimal way to structure and conduct mobile wallet transactions based on our years of experience and research in the payments space," said Paydiant's co-founder, Kevin Laracey. "Intellectual property is important to our business in this burgeoning category. We are pleased that the USPTO has recognized our invention and that our customers and partners -- some of the world's largest and most discerning retailers, card issuers, banks, payment processors and POS system developers -- have validated our platform and approach with their selection of Paydiant as their mobile payment and mobile wallet platform partner."
Paydiant is the provider of a cloud-based, white label mobile payment, mobile wallet, and offer redemption platform that enables merchants, banks, and payment processors to deploy and manage their own mobile payment, offer management and offer redemption solution, under their own brand and on their own terms. Based on an enterprise-class, cloud-based transaction processing platform, the Paydiant solution enables the key stakeholders in the payments value chain -- retailers, banks, and payment processors -- to control the next generation of payment solutions. Visit www.paydiant.com for more information about the Paydiant solution.