Method of making mobile payments to a recipient lacking a wireless or contactless terminal

1. A method to establish an association among a consumer, a merchant, and a mobile payment provider (MPP) over a network, comprising the steps:

the merchant registering with the MPP by submitting merchant information;

the merchant submitting to the MPP mobile payment processing information;

a credit card issuer allocating at least one credit card account having a credit card number to the MPP;

the MPP assigning the credit card number to an ordinary point of sale terminal (OPOS terminal) of the merchant over the network;

the MPP assisting the merchant to allow the OPOS terminal to process the credit card number over the network;

the MPP assigning three mobile processing identifiers to the merchant, the three mobile processing identifiers being an IP address, a phone number, and a short name associated with the merchant;

the consumer setting up a mobile payment account with the MPP;

the consumer providing personal identification information to the MPP;

the consumer funding the mobile payment account;

the MPP creating database records for the merchant information and the mobile payment account;

the MPP downloading a mobile payment application (MoPA) to a mobile device of the consumer;

the MPP facilitates mobile purchasing over the network by connecting the MoPA on the mobile phone of the consumer to the OPOS terminal of the merchant via the three mobile processing identifiers assigned to the merchant, wherein the short name is associated with the IP address and the phone number in that when the consumer submits the short name to the MPP, the MPP returns the IP address and the phone number, wherein the MPP sends to the MoPA on the consumer's mobile payment device, an item reference number, a price, a merchant, a date and time, and requests confirmation, and the consumer sends an approval from the mobile payment device using the MoPA.

2. The method of claim 1 , wherein the MPP assists the merchant to allow the OPOS terminal to process the credit card number by sending a credit card bearing the credit number to the merchant.

3. The method of claim 1 , wherein the MPP assists the merchant to allow the OPOS terminal to process the credit card number by providing a software to run on the OPOS terminal.

4. The method of claim 1 , wherein the MPP assists the merchant to allow the OPOS terminal to process the credit card number by upgrading a POS terminal firmware running on the OPOS terminal.

5. The method of claim 4 , wherein the MPP upgrade the POS terminal firmware by downloading an executable program which contains the credit card number to the OPOS terminal.

6. The method of claim 1 , wherein the merchant information comprises: a name, an address, and an standard industrial classification (SIC) code.

7. The method of claim 1 , wherein the mobile payment processing information comprises: a. a merchant ID assigned to the merchant by the acquirer, b. a POS terminal ID, c. a POS terminal type, and d. a preferred merchant short name.

8. The method of claim 1 , wherein the IP address, the phone number, and the short name are displayed by the OPOS terminal.

9. The method of claim 1 , wherein the personally identifiable information includes a consumer name, a consumer address, and a consumer phone number.

10. The method of claim 1 , further comprising: the consumer selecting a personal identification number (PIN) when setting up the mobile payment account.

11. The method of claim 1 , further comprising: the mobile payment account is linked to a bank account or credit line belonging to the consumer.

12. The method of claim 1 , further comprising: the mobile payment account is linked to a unique identifier of a mobile device the consumer uses.

13. The method of claim 12 , wherein: the unique identifier is a cell phone number, a electronic serial number, or an international mobile equipment indicator.