WO2007026212A1

WO2007026212A1 - Off-line vending system

Info

Publication number: WO2007026212A1
Application number: PCT/IB2006/002349
Authority: WO
Inventors: Helmut Grewar Nel
Original assignee: Firstrand Bank Limited
Priority date: 2005-08-29
Filing date: 2006-08-29
Publication date: 2007-03-08

Abstract

A method of operating an off-line vending service and an off-line vending system are disclosed. The system comprises a number of terminals for use by merchants, and a central server with an associated database. Each terminal is uniquely identified and has associated data storage, in which an algorithm is stored. The terminal is operable to permit a customer to select a product or service from one or more predetermined products or services. Details of a selected product or service and other data are used by the algorithm to generate an encrypted transaction code which is provided to the customer on a transaction receipt. The customer transmits a transaction request to the central server, typically using a mobile telephone or a computer, which comprises at least a portion of the transaction code. The central server analyses the transaction request message using the same algorithm to determine its validity and, if the transaction request message is valid, makes the purchased product or service available to the customer or a designated recipient. This latter step may be done via a product or service host.

Description

OFF-LINE VENDING SYSTEM

BACKGROUND OF THE INVENTION

This invention relates to a method for the vending of products or services in an off-line manner from remote terminals, and to a system for implementing the method. The invention extends to a terminal for use in the system.

Various systems exist by means of which merchants can sell vouchers comprising codes (known as virtual vouchers) that are redeemable to purchase or obtain access to a product or service. Typically, such systems are used to sell prepaid network airtime to mobile telephone users, but other products and services can be sold as well.

These known systems have the drawback that they include point-of-sale terminals which must collect these codes regularly from a central repository and store them on the point-of-sale terminals. This in turn causes problems with "stock" that has to be managed and has disadvantages in that the stock of virtual vouchers is liable to be stolen, or could be lost should the point-of-sale device malfunction. The net result is that these systems require a fair amount of management and that theft and/or loss of stock erodes the profitability of such systems.

Other systems exist by means of which merchants can sell virtual vouchers without having to collect and store them on point-of-sale terminals. These systems have the drawback that a merchant's terminal must connect to a central repository for every transaction in order to collect the redeemable voucher code on demand. This in turn makes the transaction more expensive, and the fact that it requires real time communication means that transactions can not be executed if there is any problem with the communication link.

Still other systems exist whereby a merchant can sell the product or service directly without the need for a virtual voucher by interacting directly with the product host. In these systems, predominantly used for the selling of prepaid airtime for cellular telephone networks, the point-of-sale terminal will connect, through a communications network, to the system of the product host whereby the product/service is made available to the customer (or, in the specific case of airtime for cellular networks, the customer is given ongoing network access) without the need for a redeemable voucher. These known systems have the drawback that the point-of-sale terminal must connect directly and in real time to the system of the product/service host. This in turn leads to the problem that a transaction can not be executed if there is any problem in connecting to the host system.

It is an object of the invention to provide an alternative method and system for the vending of products or services.

SUMMARY OF THE INVENTION

According to the invention there is provided a method of operating an offline vending service, the method comprising:

providing a plurality of terminals for use by merchants, each terminal being uniquely identified;

recording, in a central database and in data storage means associated with each terminal, merchant identification data, unique terminal identification data and product/service identification data relating to a predetermined set of products and/or services available for purchase from each terminal; selecting, via a user interface of a terminal, a product or service required by a customer; and

generating at the terminal, in response to the selection of the product or service, a transaction code identifying the merchant, the terminal and the selected product or service, the transaction code or a portion thereof being redeemable by the customer to gain access to the product or service purchased.

The method preferably includes storing, both in the central database and in the data storage means associated with each terminal, data defining a predetermined algorithm used by the terminal to generate the transaction code.

The method may include receiving, at a central server, a transaction request message transmitted by the customer to the central server to confirm the transaction and to gain access to the purchased product or service, the transaction request message comprising at least a portion of the transaction code and the central server applying the predetermined algorithm to the transaction code or portion thereof to verify the validity thereof and to identify the merchant, the terminal and the selected product or service therefrom.

Preferably, the transaction code is provided to the customer in the form of a transaction receipt serving both to convey the transaction code and to act as a receipt.

The transaction request message may be an SMS, MMS or USSD message, or may be transmitted as a GPRS, 3G or other data message from the customer to the central sever via a mobile telephone network. The transaction request message may be a data message transmitted over a data network.

For example, the data message may be transmitted via the Internet from a computer or other device.

The transaction request message may comprise predetermined content including an address identifier which is used to address the message to the central server.

The transaction request message may comprise both predetermined content and non-predetermined content.

In the case of messages including non-predetermined content, the non- predetermined content may comprise a mobile telephone number or other identifier of a customer, other than a mobile telephone number of the customer which is used to send the message, as well as the unique transaction code generated by the terminal for each transaction.

In one embodiment of the method, characters making up the transaction request message are entered into a mobile telephone by the customer using the keypad of the mobile telephone.

At least a portion of the transaction request message may comprise image data captured by taking a digital photograph of an image embodying the unique transaction code.

For example, the unique transaction code may be provided to the customer in the form of a bar code printed on the transaction receipt.

The method may include transmitting a confirmatory message to a mobile telephone of the customer confirming the transaction. The confirmatory message may be sent as part of a USSD session, or as an SMS or MMS message, or as a data message data via a GPRS or 3G service.

The product or service may be made available to the customer or to another designated recipient, related to the mobile telephone number of the customer transmitting the transaction request message, or the mobile telephone number or other identifier that was provided in the non- predetermined portion of the transaction request message, without further information being required of the customer.

Further according to the invention there is provided an off-line vending system comprising a plurality of terminals for use by merchants and a central server having an associated database, each terminal being uniquely identified and having associated data storage means, and each terminal being able to communicate with the central server, the central server and each terminal being arranged to store respective merchant identification data, unique terminal identification data and product/service identification data relating to a predetermined set of products and/or services available for purchase from each terminal, the system being operable in use to permit a merchant or a customer to select, via a user interface of a terminal, a product or service required by the customer, and the respective terminal being operable, in response to the selection of the product or service, to generate a transaction code identifying the merchant, the terminal and the selected product or service, the transaction code being redeemable by the customer to gain access to the product or service purchased.

Preferably, both the central database and the data storage means associated with each terminal store data defining a predetermined algorithm used by the terminal to generate the transaction code. The central server is preferably operable to receive a transaction request message transmitted by the customer to the central server to confirm the transaction and to gain access to the purchased product or service, the transaction request message comprising at least a portion of the transaction code and the central server being operable to apply the predetermined algorithm to the transaction code or portion thereof to verify the validity thereof and to identify the merchant, the terminal and the selected product or service therefrom.

The central server may be arranged to transmit data comprising details of the product or service purchased to a product or service host, the product or service host making the product or service available to the customer or a designated recipient.

The invention extends to a terminal for use in an off-line vending system as defined above, the terminal comprising a display, a user interface, a processor, data storage means associated with the processor, a communication interface for communication with a central server, and output means for generating a transaction receipt, the terminal storing data identifying it uniquely to the central server and being operable in cooperation with the server to store respective merchant identification data, unique terminal identification data and product/service identification data relating to a predetermined set of products and/or services available for purchase from each terminal, the terminal being operable in use to permit a merchant or a customer to select, via the user interface, a product or service required by the customer, and being operable, in response to the selection of the product or service, to generate a transaction code identifying the merchant, the terminal and the selected product or service, the transaction code or a portion thereof being redeemable by the customer to gain access to the product or service purchased. BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 is a simplified schematic diagram illustrating major components of a system for operating the point-of-sales vending system according to the invention; and

Figure 2 is a simplified flow diagram showing major steps in the method of the invention.

DESCRIPTION OF PREFERRED EMBODIMENTS

The present invention aims to provide a decentralised system for the vending of products or services from a plurality of distributed point-of-sale terminals in an offline manner. Typically, the terminals will dispense so- called "virtual vouchers" comprising a unique code that is redeemable by a purchaser to access a service or obtain a product.

Such vouchers are widely used to dispense prepaid airtime for cellular telephone networks. A purchaser of such a voucher enters the voucher code (in the given example, via the keypad of his/her mobile telephone) and transmits it to the network operator via the telephone network. Once the network operator verifies the code, the purchaser is given additional or continued network access. The invention will be described further with specific reference to the vending of prepaid airtime, but it will be appreciated by those skilled in the art that the invention can be applied to the vending or distribution of other products and services.

Due to their offline operation, the distributed point-of-sale terminals of the invention do not have to connect to a central server for every transaction. However, neither do they have to keep a stock of the virtual voucher codes to be issued to customers. In operation, each point-of-sale terminal instead generates a unique transaction code for each transaction conducted via the terminal. In producing the transaction code the device uses the transaction information and applies an algorithm to it to produce a set of numbers which forms part of the transaction code.

The transaction code is provided to the customer on a receipt, who then sends this transaction code (or a part of the transaction code) in a transaction request message to a computerised server by means of an SMS message, a USSD message or other data message, either from a standard GSM mobile phone via the mobile telephone network, or using a computer, for example via the Internet. This message contains information that the computerised server uses to identify the respective merchant, the specific point-of-sale terminal that produced the unique transaction code, and information identifying the product that was paid for as well as the price/value that was paid.

From the transaction code itself, and with knowledge of the algorithm that was used on the point-of-sale device to produce the relevant part of the transaction code, the computerised server can determine the validity of the transaction request message, which enables the server to connect to the mobile network operator (or other applicable product/service host) in order to make available to the customer the product/service that was paid for at the point-of-sale terminal without first having to refer to the point-of-sale terminal to verify the information.

In order for a point-of-sale terminal to be enabled to sell products/services in this manner, the merchant operating the point-of-sale terminal has to register for the service and specifically must provide information such as the merchant's bank account details. It is necessary for each point-of-sale terminal to be identifiable by means of a specific identifier that is unique to the device. It is also necessary for the point-of-sale terminal to be enabled by means of suitable software. The software allows the terminal to display information relating to available products or services, allows the merchant to select a product/service via the user interface of the terminal as per the customer request, and then enables the terminal to generate a unique transaction code that is presented to the customer as part of a printed transaction receipt.

As seen in a highly schematic form in Figure 1 , a point of sale terminal 10 typically comprises a compact housing which supports a display 12 and a user interface, typically a keypad 14. The terminal includes a processor with associated memory or other data storage, a communication interface such as a modem, a wireless communication interface or another communication interface, and a printer for generating a customer receipt 16. The memory of the terminal stores software controlling the operation of the terminal, which generates, amongst other things, menu displays to facilitate operation of the terminal by the merchant and/or the customer. The memory also stores transaction data, the algorithm used to generate the transaction code, and an identity code uniquely identifying the terminal. The algorithm and the identity code could be stored in secure memory, possibly in an encrypted form.

The information identifying the merchant and the point-of-sale terminal itself is stored in a database of a transactional server forming part of the computerised server, with other information such as personal details of the merchant and information that identifies each point-of-sale terminal of the merchant that is registered for the service (see Figure 1).

In order for the customer to redeem the virtual voucher represented by the code in the transaction receipt for the product/service that was paid for, it is not necessary for the customer to be known to the computerised server. The computerised server determines the validity of the transaction request purely from the contents of the transaction request message transmitted by the customer to the server. The operation of the method and the system will now be described in more detail with reference to the schematic diagram of Figure 1 and the flow diagrams of Figure 2.

In the prototype system of the invention several types of transactions are catered for. The first type of transaction relates to the selling of prepaid network airtime for a mobile telephone. Airtime can be purchased for any mobile telephone and need not be restricted to use with the mobile telephone of the customer making the purchase.

Any number or amount of other products/services can be sold via the method of the invention as long as the product/service type is known to both the computerised server and the point-of-sale terminal, and the computerised server is connected to the product/service host that is responsible for making the product/service available to the customer. According to the invention it is not necessary for the merchant or the point- of-sales terminal to know the identity of the final product host from which the product is being purchased as long as the terminal knows the type of product/service and is given information regarding the price/value that is being paid for the product/service. The customer is identified to the server either by the number of the mobile telephone that is used by the customer to send the message, or by another identifier of a predetermined nature that the customer adds to the transaction request message sent to the server. New product/service types can be added at any time to a list of products and services, thereby creating new transaction types.

Table 1 below shows examples of transactions that can be carried out on the prototype system of the invention.

Table 1

Customer Requirement

Purchase PREPAID AIRTIME for any mobile phone Purchase any amount of airtime for any mobile phone between the preconfigured lower and upper limits. E.g. the lower limit can be R15 and the upper limit can be R500

Airtime can be bought for any mobile phone and it is not necessary to know the phone number when the transaction is being done

A step by step description of a transaction is set out below in three parts with reference to Figure 2. The first part of the transaction shown in Figure 2 is the transaction between the customer and the merchant at the point-of- sale terminal, while the second part is the redemption transaction between the customer and the server of the product/service host. The third part of the transaction is the reconciliation on the central computerised server between the log file from the point-of-sales device and the log file from the transactions that were redeemed in the second part of the process.

Part i:

For purposes of illustration a prepaid airtime purchase transaction will used to explain the transaction flow.

• The customer requests a product/service from the merchant (e.g. to purchase R100 of airtime);

• The merchant accesses the applicable prepaid function screen on the point-of-sale terminal and enters the amount of the transaction;

• The point-of-sale terminal now generates a transaction receipt comprising a transaction code in the form of a string of characters which includes the details of the product/service that was purchased as well as other information that is used by the computerised server to validate the transaction, as well as to identify the merchant and point-of-sale terminal that was used to conduct the transaction;

• The transaction receipt or virtual voucher is now presented to the customer and the customer pays the merchant for the value of the transaction; • This concludes . the transaction between the customer and the merchant.

Part 2:

For purposes of illustration a mobile telephone sending a USSD message will be used as the medium of communication for this step of the method.

• In order to access the R100 airtime that was paid for, the customer enters the code or transaction string into the mobile telephone via the telephone keypad;

• The customer now sends a USSD message from the mobile telephone, via the mobile telephone network, to the computerised server, which comprises a messaging server and a transactional server. The message string includes the address identifier e.g. *130*321 *<rest of the string>#. The address identifier identifies the messaging server;

• The transaction string is received by the messaging server;

• The message content is now manipulated by the transactional server and certain details are extracted in order to verify that the transaction request is valid as well as to identify the merchant and the specific point-of-sale terminal that was used to conduct the first part of the transaction;

• If the verification and identification give a positive result the transactional server extracts the details of the product/service that was purchased;

• These details, together with either the phone number that was used to send the message, or the phone number that was supplied as part of the non-predetermined message content, are sent to the applicable product/service host (in this case the mobile telephone network operator); • The network operator receives the message, credits the respective user's network account with the R100 airtime, and gives a positive response to the computerised server;

• The messaging server now responds positively to the customer via USSD or SMS to confirm the transaction;

• This concludes the transaction.

Part 3:

• At the end of each day, or at any suitable predetermined period, the point-of-sale device will connect to the central computerised server via a communications network (typically a telephone or data network) and upload its latest transaction log file to the server;

• The central computerised server then compares the log file from the point-of-sale device with the transaction log file from the redeemed transactions (from Part 2 above). This reconciliation process will highlight two types of exceptions namely: o Unredeemed transactions (i.e. the customer has not yet carried out the redemption part of the transaction in accordance with Part 2 above); and o Possible fraudulent transactions (i.e. transaction redemptions were received in accordance with Part 2 but the device log file doesn't show the transaction(s));

• If no exceptions are found the merchant is settled for the period's transactions;

• If exceptions are found the appropriate handling of the exceptions is initiated and once the handling is complete the merchant is settled for the period's transactions.

Instead of comprising purely a USSD or SMS message, the transaction request message could include image data. For example, if the transaction receipt comprises a barcode, a digital photograph of the barcode can be taken using a customer's mobile telephone and transmitted together with other data forming part of the transaction request message.

Claims

1. A method of operating an off-line vending service, the method comprising:

recording, in a central database and in data storage means associated with each terminal, merchant identification data, unique terminal identification data and product/service identification data relating to a predetermined set of products and/or services available for purchase from each terminal;

selecting, via a user interface of a terminal, a product or service required by a customer; and

2. A method according to claim 1 including storing, both in the central database and in the data storage means associated with each terminal, data defining a predetermined algorithm used by the terminal to generate the transaction code.

3. A method according to claim 2 including receiving, at a central server, a transaction request message transmitted by the customer to the central server to confirm the transaction and to gain access to the purchased product or service, the transaction request message comprising at least a portion of the transaction code and the central server applying the predetermined algorithm to the transaction code or portion thereof to verify the validity thereof and to identify the merchant, the terminal and the selected product or service therefrom.

4. A method according to any one of claims 1 to 3 including providing the transaction code to the customer in the form of a transaction receipt serving both to convey the transaction code and to act as a receipt.

5. A method according to claim 3 wherein the transaction request message is an SMS, MMS or USSD message.

6. A method according to claim 5 wherein the transaction request message is transmitted as a GPRS, 3G or other data message from the customer to the central sever via a mobile telephone network.

7. A method according to claim 3 wherein the transaction request message is a data message transmitted over a data network.

8. A method according to claim 7 wherein the data message is transmitted via the Internet from a computer or other device.

9. A method according to any one of claims 3 to 8 wherein the transaction request message comprises predetermined content including an address identifier which is used to address the message to the central server.

10. A method according to claim 9 wherein the transaction request message comprises both predetermined content and non- predetermined content.

11. A method according to claim 10 wherein the non-predetermined content comprises a mobile telephone number or other identifier of a customer, other than a mobile telephone number of the customer which is used to send the message, as well as the unique transaction code generated by the terminal for each transaction.

12. A method according to claim 5 or claim 6 wherein characters making up the transaction request message are entered into a mobile telephone by the customer using the keypad of the mobile telephone.

13. A method according to claim 5 or claim 6 wherein at least a portion of the transaction request message comprises image data captured by taking a digital photograph of an image embodying the unique transaction code.

14. A method according to claim 13 wherein the unique transaction code is provided to the customer in the form of a bar code printed on the transaction receipt.

15. A method according to any one of claims 1 to 14 including transmitting a confirmatory message to a mobile telephone of the customer confirming the transaction.

16. A method according to claim 15 wherein the confirmatory message is sent as part of a USSD session, or as an SMS or MMS message, or as a data message data via a GPRS or 3G service.

17. A method according to any one of claims 1 to 16 wherein the product or service is made available to the customer or to another designated recipient, related to the mobile telephone number of the customer transmitting the transaction request message, or the mobile telephone number or other identifier that was provided in the non-predetermined portion of the transaction request message, without further information being required of the customer.

18. An off-line vending system comprising a plurality of terminals for use by merchants and a central server having an associated database, each terminal being uniquely identified and having associated data storage means, and each terminal being able to communicate with the central server, the central server and each terminal being arranged to store respective merchant identification data, unique terminal identification data and product/service identification data relating to a predetermined set of products and/or services available for purchase from each terminal, the system being operable in use to permit a merchant or a customer to select, via a user interface of a terminal, a product or service required by the customer, and the respective terminal being operable, in response to the selection of the product or service, to generate a transaction code identifying the merchant, the terminal and the selected product or service, the transaction code being redeemable by the customer to gain access to the product or service purchased.

19. A system according to claim 18 wherein both the central database and the data storage means associated with each terminal store data defining a predetermined algorithm used by the terminal to generate the transaction code.

20. A system according to claim 19 wherein the central server is operable to receive a transaction request message transmitted by the customer to the central server to confirm the transaction and to gain access to the purchased product or service, the transaction request message comprising at least a portion of the transaction code and the central server being operable to apply the predetermined algorithm to the transaction code or portion thereof to verify the validity thereof and to identify the merchant, the terminal and the selected product or service therefrom.

21. A system according to any one of claims 18 to 20 wherein the central server is arranged to transmit data comprising details of the product or service purchased to a product or service host, the product or service host making the product or service available to the customer or a designated recipient.

22. A terminal for use in an off-line vending system according to any one of claims 18 to 21 , the terminal comprising a display, a user interface, a processor, data storage means associated with the processor, a communication interface for communication with a central server, and output means for generating a transaction receipt, the terminal storing data identifying it uniquely to the central server and being operable in cooperation with the server to store respective merchant identification data, unique terminal identification data and product/service identification data relating to a predetermined set of products and/or services available for purchase from each terminal, the terminal being operable in use to permit a merchant or a customer to select, via the user interface, a product or service required by the customer, and being operable, in response to the selection of the product or service, to generate a transaction code identifying the merchant, the terminal and the selected product or service, the transaction code or a portion thereof being redeemable by the customer to gain access to the product or service purchased.