PayPal legal foe PayOne has received a U.S. Patent for its PayConnect technology, “instant wallet” capability and intellectual property serving the mobile commerce and digital payment market.
The newly awarded patent, which was filed in November 2010, covers mobile payments, fraud control and identity verification for online and in-store transactions. This new patent adds to a portfolio of eight patents awarded to PayOne related to mobile wallet, payments and carrier billing. PayOne’s “instant wallet” enables payments by using a mobile phone number and secure PIN.
The portfolio of patents cover real-time authentication and fraud control, and the ability to use phone numbers and/or mobile devices to validate, execute, and settle financial transactions using a variety of funding methods. These methods include a mobile bill account, credit/debit cards and pre-paid cards. PayOne and the PayOne Global Carrier Network currently provides the ability for over 4 billion consumers in over 80 countries to utilize their mobile phones for secure digital mobile payments.
PayOne has been in a long-standing legal battle with PayPal connected to these patents. Payone claims Home Depot’s use of PayPal’s point of sale system, which allows users to make payments by giving the merchant and phone number and PIN, is covered by PayOne’s patents. PayOne has sued Home Depot, and has suggested it may name other retailers in future action.
There has not been movement on the lawsuit, a Payone spokesperson told PaymentsSource on Wednesday.