System and method for providing software-based contactless payment
Systems and methods provide software-based contactless payments. According to various embodiments, a system for software-based contactless payment includes a token manager that generates a token and provides the token to a mobile device of a customer for use with a transaction, a communication interface that receives the token in association with a transaction, and a processor that processes the token using to determine whether to authorize the transaction.
1. A method for software-based contactless payment, comprising:
receiving, from a customer mobile device via a communication network, a request for a token for use with a transaction;
generating, using a processor, the token in response to the request, wherein the token comprises randomly generated alphanumeric characters;
providing, via the communication network when the customer mobile device is in an online environment, the token to the customer mobile device in real-time by a real-time data application programming interface for use with the transaction, wherein the token is stored within an app processor of the customer mobile device that is connectively coupled to an embedded NFC chip and the customer mobile device enables an NFC emulation mode by a card emulation application programming interface;
receiving, through an authorization network from a merchant system via the customer mobile device embedded NFC chip and an NFC data exchange format application programming interface configured for reading and writing, the token in association with a transaction and transaction data, wherein the token is formattable by the merchant system into a track of data utilized directly by the authorization network;
comparing the received token and transaction data to a database of provided tokens, wherein each provided token is associated with a parameter requirement, including transaction limits, use limits and time limits, wherein at least one parameter requirement enables a previous token to be used for a defined period of time to enable a transaction when the customer mobile device lacks a connection to the communication network; and
transmitting, via the authorization network, an authorization response based on the comparison, wherein a transaction is authorized when the received token matches a token in the database and the transaction data complies with the parameter requirement.
2. The method of claim 1 , wherein the authorization response is transmitted to the merchant system.
3. The method of claim 1 , wherein the token is provided and received by an issuer system.
4. The method of claim 1 , wherein the received token is transmitted in response to receiving a personal identification number provided by the customer via the customer mobile device.
5. The method of claim 1 , further comprising:
receiving, from the customer mobile device, an identifier associated with the customer mobile device; and
utilizing the identifier in the authorization determination.
6. A system for software-based contactless payment, comprising:
a token manager that:
generates a token in response to receiving a request for the token via a communication network from a customer mobile device, wherein the token comprises randomly generated alphanumeric characters, and
transmits the token to the customer mobile device in an online environment in real-time by a real-time data application programming interface for use with a transaction, wherein the token is stored within an app processor of the customer mobile device, the app processor connectively coupled to an embedded NFC chip and the customer mobile device enables an NFC emulation mode by a card emulation application programming interface;
a communication interface that receives, through an authorization network from a merchant system via the customer mobile device embedded NFC chip and an NFC data exchange format application programming interface configured for reading and writing, the token in association with the transaction and transaction data, wherein the token is formattable by the merchant system into a track of data utilized directly by the authorization network; and
a processor that:
compares the received token and transaction data to a database of provided tokens, wherein each provided token is associated with a parameter requirement, including transaction limits, use limits and time limits, wherein at least one parameter requirement enables a previous token to be used for a defined period of time to enable a transaction when the customer mobile device lacks a connection to the communication network, and
authorizes a transaction when the received token matches a token in the database and the transaction data complies with the parameter requirement, wherein the communication interface transmits the authorization via the authorization network.
7. The system of claim 6 , wherein the authorization is transmitted to the merchant system.
8. The system of claim 6 , wherein the token is provided and received by an issuer system.
9. The system of claim 6 , wherein the received token is transmitted in response to a receiving personal identification number provided by the customer via the customer mobile device.
10. The system of claim 6 , wherein the token manager receives an identifier associated with the customer mobile device from the customer mobile device, and the processor utilizes the identifier in the authorization determination.
11. The method of claim 1 , wherein the parameter requirements comprise a location limit, wherein the transaction information comprises customer mobile device location information and merchant location information.
12. The system of claim 6 , wherein the parameter requirements comprise a location limit.
13. The system of claim 6 , wherein the parameter requirements comprise a location limit, wherein the transaction information comprises customer mobile device location information and merchant location information.
14. The method of claim 5 , wherein the identifier associated with the customer mobile device is retrieved from the SIM card of the customer mobile device that securely stores the identifier.
15. The method of claim 1 , wherein the received token is transmitted in response to receiving a multifactor authentication challenge provided by the customer via the customer mobile device.
16. The system of claim 10 , wherein the identifier associated with the customer mobile device is retrieved from the SIM card of the customer mobile device that securely stores the identifier.
17. The system of claim 6 , wherein the received token is transmitted in response to receiving a multifactor authentication challenge provided by the customer via the customer mobile device.