How Mobile Phones Can Securely Authorize Payments Using Random ID Codes
A 2006 system that uses a mobile phone to receive and relay a unique, temporary ID code to a store terminal to verify and authorize a payment transaction.
Original patent title: “Method and apparatus of secure authentication and electronic payment through mobile communication tool”
A 2006 system that uses a mobile phone to receive and relay a unique, temporary ID code to a store terminal to verify and authorize a payment transaction. Granted to Individual in 2009 with 7 claims and 17 forward citations, and it is now in the public domain.
Coverage
What does this patent actually cover?
The system creates a secure loop between a user's phone, a store's transaction terminal, and a central account server. When a user initiates a purchase, the account server generates a one-time Random ID (RID) and sends it to the user's mobile phone. The user then transfers this RID to the store's terminal—via methods like Bluetooth, infrared, or by displaying it as a barcode for scanning. The store terminal sends the RID back to the account server, which confirms the match to authorize the payment.
The gap
What does this patent NOT cover?
- Does not cover payment systems that rely on static account numbers or credit card magnetic stripes without the RID verification loop.
- Does not cover biometric authentication (like fingerprint or facial recognition) as the primary verification mechanism.
- Does not cover direct peer-to-peer payments that bypass the central account server and transaction server architecture described in the claimsclaimsThe numbered statements at the end of a patent that legally define what the inventor owns.Read more →.
These exclusions are unique to PatentBrief — derived from the actual claim language, not patent-office boilerplate.
Key facts
What made this novel
The system uses the mobile device as a secure relay for a temporary token, effectively turning the phone into a dynamic 'key' that must be present at the physical point of sale to complete the transaction.
The Patent Drawing
Schematic visualization of the patent's claim structure. Hand-drawn diagrams in progress for each landmark patent.
Where you've seen this
Real-world examples
Mobile wallet barcode payment systems
Point-of-sale systems requiring a one-time code from a mobile app
Digital ticketing systems using dynamic QR codes
Why it matters
The bigger picture
This patent describes an early architecture for mobile-based payment verification, predating the widespread adoption of modern mobile wallets. It reflects a period when developers were solving the problem of how to securely bridge the gap between a user's mobile device and a physical point-of-sale terminal.
Filed
September 18, 2006
Granted
August 18, 2009
Market context
Who's building on this
Companies in this space
Major payment processors and mobile platform providers like Apple, Google, and Samsung have built upon the concept of tokenized mobile payments. While this specific patent is held by an individual, the industry has shifted toward standardized tokenization protocols like EMVCo to achieve similar security goals.
Market impact
This patent represents an early attempt to standardize mobile-to-terminal communication for payments. While it didn't spark a singular industry-wide lawsuit, it captures the technical transition from physical card-swiping to the era of mobile-mediated, token-based transactions that now dominate retail.
Claim 1 — Plain English
What this patent covers
The system creates a secure loop between a user's phone, a store's transaction terminal, and a central account server. When a user initiates a purchase, the account server generates a one-time Random ID (RID) and sends it to the user's mobile phone. The user then transfers this RID to the store's terminal—via methods like Bluetooth, infrared, or by displaying it as a barcode for scanning. The store terminal sends the RID back to the account server, which confirms the match to authorize the payment.
The clever bit
The system uses the mobile device as a secure relay for a temporary token, effectively turning the phone into a dynamic 'key' that must be present at the physical point of sale to complete the transaction.
What it does not cover
- Does not cover payment systems that rely on static account numbers or credit card magnetic stripes without the RID verification loop.
- Does not cover biometric authentication (like fingerprint or facial recognition) as the primary verification mechanism.
- Does not cover direct peer-to-peer payments that bypass the central account server and transaction server architecture described in the claims.
Patent timeline
Application submitted to the patent office
Application published, typically 18 months after filing
Patent officially issued
Patent enters public domain
PatentBrief Score
Impact Score
Early stage
Citation count
25/40
Moderately cited
Claim breadth
5/20
Moderate scope
Recency
5/20
Granted 10–20 years ago
Assignee scale
0/20
Independent or smaller assigneeassigneeThe entity that owns the patent — usually the inventor's employer or a company.Read more →
PatentBrief Impact Score — based on citation count, claim breadth, recency, and assignee scale. Not a legal assessment.
Heuristic Value Estimate
What this patent might be worth
$18K – $58K
Midpoint $36K · expired or expiring · industry ×1.6
Heuristic only — blends forward/backward citation counts, claim scope, time remaining, litigation history, and CPC-derived industry baseline. Real valuations need a professional appraisal.
Patent Claims
0 independent claims · 1 dependent
Claims are the legal boundaries of the patent. An independent claim stands alone. A dependent claim adds limitations to its parent, narrowing — but not broadening — the scope.
The original legal language
Original claims
7 claims as filed with the patent office.
Concepts involved
Citations
Patent lineage
Cite this patent
Zhu, X. (2009). How Mobile Phones Can Securely Authorize Payments Using Random ID Codes (U.S. Patent No. 7,577,616). U.S. Patent and Trademark Office. https://patentbrief.org/patent/us/7577616/method-and-apparatus-of-secure-authentication-and-electronic-payment-through-mobile-communication-tool
Auto-generated from the patent record. Double-check author order and the issue date against the official USPTO document before submitting.
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Common Questions
Frequently Asked Questions
What does How Mobile Phones Can Securely Authorize Payments Using Random ID Codes cover?
A 2006 system that uses a mobile phone to receive and relay a unique, temporary ID code to a store terminal to verify and authorize a payment transaction.
Who owns patent US 7577616?
Individual owns this patent, granted in 2009.
When does this patent expire?
This patent is expected to expire on September 18, 2026, when the invention enters the public domain.
What is patent US 7577616 cited by?
This patent has been cited by 17 later patents that build on its ideas.
What problem does this patent solve?
This patent describes an early architecture for mobile-based payment verification, predating the widespread adoption of modern mobile wallets. It reflects a period when developers were solving the problem of how to securely bridge the gap between a user's mobile device and a physical point-of-sale terminal.
What does this patent NOT cover?
Does not cover payment systems that rely on static account numbers or credit card magnetic stripes without the RID verification loop.
Same assignee
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