FORM 2
THE PATENTS ACT, 1970
(39 of 1970)
&
THE PATENT RULES, 2003
COMPLETE SPECIFICATION
(See Section 10 and Rule 13)
Title of invention:
METHOD AND SYSTEM OF MANAGING MICRO FINANCIAL TRANSACTIONS ON MOBILE COMMUNICATION DEVICE
Applicant:
TATA Consultancy Services Limited A company Incorporated in India under The Companies Act, 1956
Having address:
Nirmal Building, 9th Floor,
Nariman Point, Mumbai 400021,
Maharashtra, India
The following specification particularly describes the invention and the manner in which it is to be performed.

Field of the Invention
The present invention generally relates to the field of electronic financial transactions, and more specifically, to direct electronic transactions using electronic wallet feature of mobile communication devices held by the participants, obviating the need of traditional banking accounts.
Background of the Invention:
The explosive growth in content and services available on the Internet has made electronic payment systems as common alternative means to the conventional payment medium such as cash, checks, credit and debit cards. Further, these trends have been combined with mobile devices to purchase items and transact business. Encr yption/Decryption rou tines embedded into the mobile devices provide people with sufficient privacy and security to perform small to medium financial transactions.
Even though these transactions may be smaller in nature, the aggregate business being transacted is large and growing rapidly in acceptance. In some cases it is necessary to load the mobile device with a monetary value before any goods or services can be purchased or any monetary transfer from one account holder to the other is necessitated. The monetary value typically resides in an electronic wallet built into the hardware and/or software of the phone and protected using encryption, a personal identification number (PIN) and other safeguards. As purchases are made with the mobile device, these electronic "funds" are moved from the electronic wallet to the electronic wallet or other holding area associated with the point-of-sale terminal or device thus consummating the financial transaction in real-time.
As seen, the whole efforts are concentrated on providing ease to banking customers to execute routine transactions. To facilitate this ease, concept of plastic money was proposed and has been in use for quite some time. However, this requires tremendous capital, infrastructure, bulky technology, routine maintenance and physical (human) security. Now, considering the growth of mobile communication network and wireless communication facilities available in the handheld mobile devices, the mobile device forms a logical extension for overriding the existing bulky financial transaction support system.

In general, the mobile device and supporting infrastructure needs to provide adequate control over the monetary value being transacted as well as confidence that the monetary value loaded on a mobile device is secure.
There is also one of the other major concerns of non availability of bank branches, ATM machines or other similar financial organizations at remote places. Additionally, alternative payment modes in the form of credit or debit cards have limited usage as they are rarely accepted by departmental stores located in remote or rural sites.
In the light of foregoing, there exists a need for a system which can address above mentioned problems to conduct financial transactions and make easy and secure payments to each other without involving ATM machines, banking counters or other such financial organizations. The spread of mobile communication necessitates removal of infrastructural constraints for active realization of money without any parasitic support.
Object of the Invention:
In accordance with the present invention, a system and method of managing electronic financial transactions on mobile communication devices is provided.
It is an object of the present invention to enable direct financial transaction between the participants, the sender and receiver, without involving traditional banking account system.
Another objective of the present invention is to configure mobile communication devices with an electronic wallet feature to realize complete cashless mode of payment transactions.
It is an object of the invention to create a cashless society and eliminate the need to carry plastic cards, ATM's, wallets or similar traditional cash realization means.
In another aspect of the present invention, quick and secure electronic mode of micropayments without incurring substantial transaction fees is presented.
In yet another aspect, access to cash and ability to make financial payments to each other is enabled even in remote locations where bank branches, ATM's and other such financial institutions are not available.

It is another object of the present invention to provide a logical extension of present banking instruments which allows transference of money from banking instruments to electronic wallet and vice versa which locally holds the cash for ready payments.
One of the objectives of the present invention is to provide an electronic transaction system including a mobile communication device that allows the user to conduct electronic commerce and transactions.
Yet another objective of the present invention is to enable the user of the system to connect to different banking systems including viewing, withdrawing and depositing money from the banking accounts to the electronic wallet and vice versa.
In another aspect of the present invention, a system flexible to integrate with existing financial support infrastructure with its minimal alteration is provided.
Yet it is an object of the present invention to enable easy and secure electronic transaction via encrypted SMS or Bluetooth networks.
It is further an object of the present invention to provide an electronic monetary system that assures safe and secure transaction with no access to any external server or involvement of 3rd party in executing transactions.
Summary of the Invention:
The present invention is directed to a system and method of managing electronic financial transactions on mobile communication devices that are embedded with an electronic wallet feature. It is a particular feature of the invention that it can be used for micropayments without incurring substantial transaction fees.
One aspect of the present invention features a system comprising: a mobile communication device configured with the function of electronic wallet to enable cashless mode of secure financial payments; a transaction recording server configured to maintain transaction registry; and a universal web based banking interface to connect electronic wallet to one or more banking accounts.
In another aspect of the present invention, a method for facilitating an electronic financial transaction between a sender and an receiver via mobile communication device based payment gateway hosted with a function of electronic wallet over a communicating network is

provided, and the method is executed by querying the electronic wallet for sufficient balance; replenishing the electronic wallet from one or more banking accounts via universal web connected banking interface upon detection of an insufficient balance therein; verifying the credentials of receiver and sender by an encrypted message; locking the corresponding wallet upon affirmative confirmation; transmitting the desired amount to the receiver's wallet via encrypted message and subsequently adjusting the wallet balance at each end; and unlocking the corresponding wallets for subsequent transactions.
The present invention is capable of achieving this via mobile phone based electronic wallet using Short Messaging Service and Mobile Banking Application. The mode of money transfer is cashless, using SMS or Bluetooth. The user can upload the money from the E-Wallet back to the Bank Account using Mobile Banking Solution.
As previously noted in one embodiment, the electronic wallet provides a mechanism for direct payment between a sender and recipient without involving 3rd party or any external server. For a sender to begin using the electronic wallet for payments, it must first be initialized. This requires the sender to have sufficient balance (e.g., wallet account balance in the bank used by the sender) in the electronic wallet account. When the electronic wallet is first launched (executed), it will authenticate itself to the user. Similarly, a recipient would have a similar set up to establish an electronic wallet with information on which account to deposit money (e.g., wallet account used by recipient) received in a transaction.
The amount of money transmitted can be tracked for regulatory purposes as a unique ID is generated for each electronic wallet transaction. At the same time, the maximum amount of monetary value exchangeable is also capped by the regulatory body to a predefined limit.
These and other aspects, features and advantages of the present invention will be described or become apparent from the following detailed description of preferred embodiments, which is to be read in connection with the accompanying drawings.
Brief Description of the Drawings:
Fig. 1 is a schematic diagram illustrating electronic financial transaction in accordance with preferred embodiment of the present invention.

Fig. 2 is a schematic diagram illustrating the workflow of facilitating an electronic financial transaction between a sender and receiver via mobile communication device hosted with an electronic wallet feature in accordance with preferred embodiment of the present invention.
Detailed Description of the Invention:
Before the present method, system and communication enablement are described, it is to be understood that this invention is not limited to the particular methodologies, and hardware and network described, as these may vary within the specification indicated. It is also to be understood that the terminology used in the description is for the purpose of describing the particular versions or embodiments only, and is not intended to limit the scope of the present invention, which will be limited only by the appended claims. The words "comprising," "having," "containing," and "including," and other forms thereof, are intended to be equivalent in meaning and be open ended in that an item or items following any one of these words is not meant to be an exhaustive listing of such item or items, or meant to be limited to only the listed item or items. The disclosed embodiments are merely exemplary methods of the invention, which may be embodied in various forms.
As used in this application, the terms "component/module" and "system" and the like are intended to refer to a computer-related entity, either hardware, a combination of hardware and software, software, or software in execution. For example, a component/module may be, but is not limited to being, a process running on a processor, a processor, an object, an instance, an executable, a thread of execution, a program, and/or a computer. By way of illustration, both an application running on a computer and the computer can be a component. One or more components/modules may reside within a process and/or thread of execution and a component /module may be localized on one computer and/or distributed between two or more computers.
Mobile Phone based banking is a common service offered by several banks where a user can carry out monetary transactions after connecting to a bank Portal, using the phone's Web Browser. It is already known in the art that Mobile Phone Banking using SMS transactions exists, where the electronic wallet is hosted on a Third Party Web Server. The major problem encountered during these transactions is a single verification of the participants which may pose a serious security risk. The server security thus becomes an issue as verification is not efficient. Also, the existing mobile phone based banking systems do not use any graphical

features of the phone, but the web portal. It also becomes difficult to manage multiple bank accounts at the same time. Moreover, a continuous connection to the bank portal is necessarily required to effectuate any transaction. Additionally, connecting a bank account to the electronic wallet also came as a challenge. Collectively, this makes the system slow and lethargic.
Accordingly, to make the system smart and prompt, it can be well understood that the continuous connection to the bank is not required. Once the user downloads the money to the phone, the connection to the bank could be broken. The present invention thereby provides a secure and safe system that provides adequate authentication for conducting financial transactions using mobile phones without remaining connected to the bank throughout transaction.
Figure 1 is a schematic diagram of a system 100 illustrating electronic financial transaction in accordance with preferred embodiment of the present invention. The system 100 uses mobile communication device 101 and 103 held by the sender and receiver respectively wherein secure and quick monetary transfer and financial transactions can be conducted using mobile phones embedded with personal electronic wallets 102, 104 of the sender and receiver respectively. The secure transaction recording server 105 enables the participants to authenticate themselves, conduct financial transaction, conduct balance inquiry and accordingly maintains the record in the registry, of the transactions followed. The entire communication between the mobile communicating devices 101, 103 is via secure transaction server 105 wherein the mutual authentication occurs before any transaction.
The technical infrastructure needed to realize this invention, therefore, broadly encompasses a mobile communication device (s) 101, 103 with internet connectivity, SMS compatibility, and adequate memory space (100Kb), basic computational power in the device 101, 103; a secure transaction recording server 105 to interface the application with the said devices; a universal web based banking interface 109 to connect with different banking portals and respective banking account(s) 106 (a&b); 107 (a&b) and 108 (a&b) as depicted in Figure 1.
The electronic wallet feature 102, 104 hosted on the mobile communication device 101, 103 respectively is enabled to access several bank accounts 106 (b); 107 (b) and 108 (b) belonging to different banks or financial institutions106 (a); 107 (a) and 108 (a). This assures

multiple verification of the participant (s) and hence a secure and safe transaction. The e-wallet feature is hosted on smart platforms like of Android, i-Phone, Blackberry and the like. This Application allows the participant to connect to the Core-Banking interface 109 of a retail bank via internet and download an amount of money into the e-Wallet, if required.
However, the maximum amount that can be downloaded by the e-wallet is subjected to regulatory requirements and is capped by a predetermined amount as decided and implemented by the competent regulatory body. From the e-Wallet, which is hosted on the phone, as shown in Figure 1, the participant can send and receive money from other e-Wallets.
The other identifying feature of the present invention that constitutes one of the other embodiments of the present invention is that each of the mobile communication device 101, 103, hosts one e-wallet feature 102 and 104 respectively which could be accessed by the participant by typing the Pass-Code. The identification of the wallet is linked to the phone memory and its associated IMEI number. While for the external users in order to identify a wallet, phone number is needed. So, if a person A has two mobile communicating devices and one SIM Card and if a person B sends him an amount when his SIM is in the first handset, he would receive the money in the first hand set. Then, if person A removes the SIM from first Hand set and puts it, in the second, and sends money to person B, then the Amount would be deducted from the e-wallet of the Second Handset. Phone Sets are not identified with persons, instead SIMs are identified with person. To trace transactions, the Agencies would need person identification, hence the transaction ID and external source Identification is linked to the person's SIM Card.
The present invention does not invo/ve any third party web server and the money resides locally on the mobile device (s) 101, 103. The mode of money transfer is cashless, using encrypted SMS to tackle major security concerns or Bluetooth network. The participant has to send instructions using SMS to the Transaction Recording Server 105 to carry out a transaction.
The mobile communication device 101,103 further comprises message encryption and decryption module for verifying the credentials of sender and receiver during conduct of financial transaction; a memory module for storing the phone number, pass-code, details of

transaction; and also an output module for displaying a message for electronic financial transactions.
In accordance with other exemplary embodiment of the present invention, a universal web based banking interface 109 is provided. Though the interface 109 is not a necessary constituent of the system 100, it is essentially required to connect the e-wallet feature of the communication device with the banking accounts. The role of banks in the present invention is limited to replenish sufficient money in the e-wallet so that the transaction can be successfully carried out. It also allows the participant to withdraw money out of the e-Wallet or enable the conversion of e-Wallet Amount to Cash.
In one of the other alternate embodiment of the present invention, the process of fund transfer can be executed without involving any banking interface. This would require minor infrastructure development on the bank side. The Bank would have to develop and send a small servelet to the phone.
Broadly, the Banking Network is based on the Web and hence the e-wallet connects the Bank using secured internet connection, available on the phone. The user is required to choose his bank and enter his bank account number and it's associated PIN Number. These details are sent to the bank portal in an encrypted format and a process of authentication is carried out.
Upon successful authentication, the amount in the e-wallet is sent back to the user or participant. The web-service from the bank allows the user to carry out one transaction. It allows the user to either withdraw money from the Bank Account to the e-wallet or deposit money from the e-wallet to the Bank Account.
The user would enter the amount and choose if he wishes to withdraw money from the Bank Account or deposit into it. If he chooses to withdraw, the amount entered is compared with the Bank Account Balance and if he chooses to deposit, the amount entered is compared with the e-wallet Balance. The transaction occurs locally on the e-wallet, but the session time is maintained on the Bank Portal.

Upon the completion of the transaction, the Web Service is sent back to the Bank Portal, The Transaction begins with sending the Web Service to the e-wallet and it has a specific session time. The transaction ends when the Web Service is returned from the e-wallet or on the expiry of the Session Time. The returned Web Service updates the Bank Portal with the new balance amount. During the transaction, the Bank Account remains locked, i.e. it cannot carry out any other transaction.
The present Banking rules in many countries allow several Non-Banking entities to carry out these above functions. Since the banking interface 109 is connected using Internet (USB), as shown in Figure 1, the e-Wallet requires Internet to connect to it. If a Business Change occurs in the Bank, allowing the users to connect to it using the phone network, then there would be no requirement for internet.
The above can be exemplified by analyzing case studies of situations where the e-wallet system 100 can exist without the bank or internet.
Example 1 presents a situation of direct cash transfer and social security scheme of the government. Most of the beneficiaries of Social Welfare Schemes of the Government do not have Bank Accounts or High End Cell phones. They do use basic mobile phone for communication and are well versed with SMS. Almost all the phone contains Near Field Network features, most common of which is Bluetooth. The Government could transfer the money to the e-wallet, by sending SMS to the beneficiary. The person would receive the money in his e-wallet and can use it to carry out transactions. If this person, has a bank account, he would not be able to deposit money into it using his phone, as there is no Internet available in it.
Example 2 presents a situation of conversion of e-wallet money to cash and vice versa. A private person or an agency could charge a commission and accept cash and send SMS to the e-wallet with the amount or accept money from the e-wallet and provide cash. If this is a locally self sustained system, then there would not be any need for a Bank. But if there is imbalance in the requirement of e-wallet money or Cash, then there would be need for Bank, where the person can deposit excess of either cash or e-wallet money and withdraw the money in the other form. For a non-locally self-sustaining system, he would need Phone with Internet connection to connect to the Bank.

Example 3 depicts a situation wherein the bank adds the Infrastructure to support non Internet Based Connection. Mobile Phone Service Providers allow the user to access certain information on low-end phones. This information is- Cricket Score, Astrology, News, Finance, Entertainment, TV Schedule, Travel Downloads etc. For purpose of Security, the Bank would ask the user to pre-register the Phone Number with which he would connect to the Bank Account. Like the Direct to Home Television, one Bank Account may be linked to a particular Bank Account. The phone number would hence act as an authentication method. This is just an example; multiple bank system could also be made operation. The user would have to SMS the Bank PtN Number, as the Bank Account is identified by its associated Phone Number, The Bank would reply back by sending an SMS of the Details. The response to the SMS would a\\ow the user to Withdraw or Deposit money into the account. There would be a pre-defined session time, after which the participant would have to re-authenticate.
Example 4 is interactive voice response based banking, in the present situation the Bank could provide a phone number, by which the user can connect to it. The participant would dial the bank, enter his Account Number and PIN from his Phone keypad. He would be told the amount in the Bank. He could withdraw the amount from the bank to his e-wallet by dialing the amount. This amount would be received in form of an SMS after he keeps the phone. Since the e-wallet cannot be accessed by an external agency and all communications of payment from e-wallet have to be initiated by it, therefore depositing into the bank account would not be possible in this system,
Therefore in order to implement banking without the use of internet would either require access to phones architecture for low end phones or development of interactive voice response to be added to existing banking infrastructure.
Figure 1 further shows a e-wallet network and a banking network to establish that the system 100 of the present invention is a common link between the Banking & e-wallet Networks and e-wallet is not a part of banking system, rather a separate cash flow network. The banking network is connected to the e-wallet only to service its request. The banking network is connected using HTTPS/lnternet as shown in Figure 1. A participant can therefore use the e-wallet without having any bank account. The only purpose and involvement of banking

accounts is to perform basic authentication to check whether sufficient monetary value exists in the e-wallet for subsequent transaction. The e-wallet can thus simulate a normal wallet where sufficient balance exists in the account to execute the transaction.
Both the networks require Account Number (provided by Swipe Card) and the PIN to connect to the Bank. Different Banks can be connected by an ATM using an Interfacing Platform, typically- VISA or Master Card. The Interfacing Sever/Portal carries out the same function. However, unlike the traditional ATM's, the e-wallet allows both withdraw and deposit to the Bank Account 106 (b), 107(b), 108(b). A factor of easy accessibility and mobility is provided by the e-wallet.
In both e-wallet and Banking Network, competent regulatory authority can view the transaction details. Each transaction has a unique identification ID of predetermined number of characters to track each transaction. Unlike the Banking Network, no third party can carry out e-wallet transaction on owners' behalf or instruction. Therefore Payment Instruction cannot be issued. Bank Accounts can however be accessed externally. All communication of payment from the e-wallet can only be executed from the mobile communication devices and in the e-wallet; the owner of the money holds the money.
It has to be pointed out that unlike cash money in e-wallet is not identified uniquely. Currency note has a Note Number and retains its identity through different transactions. The money in the e-wallet does not have a unique identity, though the transaction has a unique ID which could be tracked on the mobile network.
More preferably, the mobile communication device can be used as an e-wallet for performing various electronic transactions such as opening the account, recharging the account, transferring money between accounts, and checking the valance of account. The transactions conducted through the system 100 are not payment instructions, rather a direct mode of payment, wherein the transaction occurs only between the mobile communication devices without involving any third party server.
It is to be further acknowledged that the application hosted on the present system 100 is platform independent. This means that e-wallet feature hosted on different platforms can interact with e-wallet feature hosted on another platform. It means that an iPhone hosted e-wallet can interact with an Android Phone hosted e-waflet. This is a natural outcome of the

selection of the Communication Media. The web communication happens using Java Servelets, which works across platforms. Similarly messages can be received and sent across platforms. The SMS content is executed within the e-wallet application, which has a common architecture of reading and executing.
Figure 2 is a schematic diagram illustrating the workflow for facilitating an electronic financial transaction between a sender and receiver via mobile communication device 101,103 hosted with an electronic wallet feature 102, 104 respectively in accordance with preferred embodiment of the present invention. The e-wa!let is used as a payment gateway for conducting fund transfer. An external application on the Mobile communication device could initiate the login into the e-wallet feature, while it is stiii open. The Application could transfer details like the amount and the Payment Destination (URL/Phone No.) to the e-wallet. These details are auto-fed into the e-wallet, once the user uses the application to connect to the e-wallet and logs into the e-wal!et. The second application can use the e-wallet as a Phone based Payment Gateway to make payments to external receivers which could be persons or Web Portals.
If the payment is made to another mobile communication device, the normal payment method of e-wallet to e-wallet is used. If the payment is made to an external server, then the e-wallet simulates itself to the external bank account as a virtual account and transfer the money using the Secured Internet Connection, which is a feature of the Smart Phone. The e-wallet passes the message to the second application on the phone, which uses e-wallet as the payment gateway, the message that the payment is completed, including the transaction ID, which could be used to determine the moment of payment.
As shown in Figure 2, the sender chooses the application from the list of application hosted on his mobile device 101 by entering the pass code, say for example, 4 digits to enter the home page. This pass code remains locally saved in the memory module of mobile communication device 101. As soon as the sender enters the home page, four options are displayed on the output module of the mobile device 101-banking; e-wallet; statements; and settings. These features are enabled on the static output module by hyperiinked buttons.
If the sender clicks on the Banking Button he is redirected to a screen asking for the Bank Account Number and the PIN Code as they are unique across the world. The Bank account

number and the access PIN is sent to the Primary Server, which recognizes the bank account number and redirects to the Banking account 106(b), 107 (b), 108 (b), using the Interface 109 built in it. This prevents banks from making changes to their accounts and allows multiple banks to use the application.
The Authentication of Account Number and PIN takes place on the platform of financial institutions before being directed to the respective banking accounts. If the information submitted is found correct, the access is granted. As credentials, like user name in Email, the Bank Account Numbers of previously accessed bank is stored and would be auto-filled on clicking.
Next, the financial institution displays the net balance in the banking account. Though additional details could be shown, but to ensure minimum wait time communication, only the balance amount is shown. The sender now has the option to either go back or fill in an amount. After filling in the amount, he could choose to withdraw or deposit the amount into the account. If the sender chooses to withdraw, the authentication is done if the amount is available in the Bank Account. If the sender wishes to deposit then the authentication would be done to ensure that the user has sufficient amount in the e-wallet.
The amount then gets updated and the sender can sign out of the banking account to go to the home screen of the mobile device. As already indicated, each transaction require individual authentication by financial regulators. From the Home Screen, the sender can click on e-Wallet feature and can enter an amount to be sent to the receiver. The system is enabled with only one functional feature here as the receiver cannot forcibly receive money.
The system 100 provides three different ways, in one of its embodiments, to fill the receiver's phone number- either by typing, or searching from contacts or searching the device in range using Bluetooth network. This is followed by the confirmation from the sender that the amount is to be sent. After the user clicks send the message, an encrypted SMS is generated which checks if the receiver has the Application installed and if his phone is on. The generation of this SMS locks the sender's e-wallet.
Upon receiving the SMS, the Application at the receiver, locks the e-wallet and sends a message back to the sender. Upon receiving the SMS, the sender sends an SMS which would increase the amount in the receiver's phone and reduces the amount in the sender's

phone. The receiver phone would unlock after the SMS and then send an SMS back to the sender to unlock his phone. The locking feature of the e-wallet coupled with encryption/decryption of SMS using encryption/decryption module of the mobile device provides the system 100 with needed security. RSA 1024/2048 public key encryption algorithm has been adopted for the purposes of enhanced security for the present invention.
Usuatiy the totai session time is 180 seconds from sending the first encrypted message from the sender. The system 100 is enabled with a unique feature of self-destruction of message in case of delivery failure. In one of the embodiments of the present invention, the message gets self destructed by a mechanism of destructor function which remains embedded within the message package. The destructor function is typically used to clear the memory space in Computer Programming. For example, if the session time is set to be 180 Seconds and the message is received at 12:23:00 then at exactly 12:26:00 the destructor function would be invoked. The invoking of the function would be based on System Time. The function would destroy and clear the memory space where the SMS was stored. Though it is contained in the SMS Package, it would destroy the entire package but itself. The problem is that several of these may get collected in the phone and fill the memory space. The advantage is that regardless of the Application or the phone, the SMS would get destroyed.
In accordance with one other embodiment of the present invention, to enable self destruction process, each SMS being sent is stamped with the Transaction ID. The Transaction ID contains the System time at which it is initiated. Hence, whenever the message is received, it would check if the current System Time is within the Session time. If the system time is not within the Session time, the Application hosts a single destructor function, which deletes the SMS, thereby rendering it useless. This is used in the current demonstration. The limitation with this system is that only the phone with e-wallet application destroys the SMS. The SMS itself cannot carry out self destruction.
The sender can also view the Statement of the transaction from the e-wallet, which includes banking & e-wallet transactions. As already discussed above, for every e-wallet transaction, a unique Transaction ID is generated which is of predetermined number of characters. For example, the transaction ID generated for an individual transaction can be as follows:

919449836882776006450020042011142852, wherein 91 can be interpreted as Country Code; 9449836882- Sender's Phone Number; 7760064500- Receiver's Phone Number; 20-04-2011- Date; 14:28:52- Moment when first SMS was sent.
The settings option available on the home page allows the participant to change the background color, or remove the saved credentials etc.
Illustrated below are examples to demonstrate real time conversion of e-wallet to machine transactions.
Case 1: Vending Machine- Assume that the sender wants to buy a Soft drink from a Vending Machine. The machine is Bluetooth enabled. The sender chooses the soft drink and the machine flashes on the Screen- payment of INR 20.00/-. The user would log into the e-wallet Software Application and search the devices in range. He would choose the Vending Machine. This would lead to transfer of 20.00/- and the machine would deliver the Soft Drink. To retrieve the money, the owner would use the Mobile Phone connected to the machine to transfer money to another e-wallet or the Bank. This could be an SMS linked System, which works without the Mobile Phone.
Case 2: Location Based Service payment- GPS Location based services are available which allow the user to access details within a particular marked coordinates. Using the GPS Application or Bluetooth, the user can connect to the Metro Stations Ticketing Counter. The user would get the prices of the different tickets. The user can then select the ticket. The amount would get auto filled, using the Application on the Backend. The user would click on Pay-Now. This would transfer the amount using SMS or Local Bluetooth. Upon receiving the amount, the Electronic Ticket image with 2D Barcode would be downloaded on the phone. The user can swipe the ticket and enter the Station. In restaurants, the user can access the Menu Card and place his order and Pay using the e-wallet on the Backend.
Case 3: Order & Pay Methods- The user may, for example, order for a particular product or service. He would have to register his phone number with the company. He can use his e-wattet to pay for the service by sending the SMS. The order can be tracked by the Common Transaction ID which gets generated. This is one of the preferred modes because over 80% of the users do not like to give out their Bank Accounts and in Bank to Bank Money transfer;

the Transaction ID of different Banks is different. Hence, tracking of the transfer becomes difficult. The sender and the recei ver would have different IDs. Here, there is common Transaction ID for the payment for both of them.
In an alternative embodiment, on an Application Specific Basis, there could be synchronization of the order and payment. A general platform cannot be built for order-payment synchronization, as different details are usually required to be passed and there is no standardization. However for the sake of standardization, each order placing application should generate an Order No. This order number could be passed by the e-wallet, while making the payment. When the payment is completed, the server would be updated that the payment is completed. The control of the Phone would go back from the e-wallet to the external application. The external application would get an update that payment has been completed.
The above illustrated embodiment of the present invention can be well understood by an example whereby a situation considering an application developed by an Innovation lab is presented. This is a phone based application, where farmers can place orders to buy fertilizers from a fertilizer company. The portal of the fertilizer company requires the Farmer's Phone number and the amount is transacted through the Pay-Pal Web Portal. A farmer could switch on the Phone and using the developed Phone Application, book the fertilizer and using the Application enter into the e-wallet, by giving his e-waflet P(N code. The Application sends the details like amount to the e-wallet and also the Payment Location- e ither a Phone Number or a Bank Account.
Since the portal of Fertilizer Company wants the payment via Bank Transfer, using Pay-Pal application, the user has two modes of making the Payment. The farmer could logon to his bank account, using the e-wallet and make the payment or directly from the e-wallet, make a cash payment by connecting to the portal using the Internet Connection on the phone. The Pay Pal portal woufd view the e-wallet as a virtual bank account, transferring cash to it. This is seen as a cash card type of an account, rather than a payment instruction.
If the Pay-Pal Portal adds infrastructure to accept SMS, then directly without internet connection, using the traditional SMS model of Payment, this payment could be made. Once the Payment is completed, a message is sent locally within the phone from the e-wallet to the application that the Transaction for Payment has been completed.

The present invention, in context of above embodiments proposes to provide various advantageous features, namely, secure and safe electronic transactions without necessitating the involvement of banking accounts.
While various preferred embodiments have been shown and described, it will be understood that there is no intent to limit the invention by such disclosure, but rather, it is intended to cover all modifications and alternate constructions falling within the spirit and scope of the invention, as defined in the appended claims. For example, the present invention should not be limited by software/program, computing environment, or specific computing hardware.
A/though the present invention has been shown and described with respect to several preferred embodiments thereof, various changes, omissions and additions to the form and detail thereof, may be made therein, without departing from the spirit and scope of the invention.

We claim:
1) A method for facilitating an electronic financial transaction between a sender and an
receiver via mobile communication device based payment gateway over a
communicating network, wherein the mobile communication device is hosted with an
electronic wallet, the method comprising processor implemented steps of:
Querying the electronic wallet for sufficient balance before initiating the transaction;
Replenishing the electronic wallet from one or more banking accounts via universal web
connected banking interface upon detection of an insufficient balance therein;
Verifying the credentials of receiver by an encrypted message and receiving
acknowledgment of the receiver on sender's device in response to his verification
message over a communicating network;
Locking the corresponding wallet upon affirmative confirmation between the mobile
communicating devices of the of the sender and receiver;
Transmitting the desired amount to the receiver's wallet via encrypted message and
subsequently adjusting the wallet balance at each end; and
Unlocking the corresponding wallets for subsequent transactions.
2) A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein the payment between the communication devices is enabled by SMS or Bluetooth.
3) A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein the mobile communication device is selected from Personal Data Assistants (PDAs); cell phones, hand-held computers and lap-top computers.
4) A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein the electronic transaction is initiated, communicated and completed directly by the sender without involving any third party server.
5) A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein the electronic financial transaction can be accomplished without involving banking account for an electronic wallet having sufficient balance.

6) A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein a unique transaction ID is generated for every electronic wallet transaction, each transaction recording sender's and receiver's mobile number, date and time of transaction.
7) A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein the sender or the receiver can deposit or withdraw cash from the banking account to electronic wallet and vice versa.
8} A method for facilitating an electronic financial transaction, as claimed in claim 1, wherein the cash that can be withdrawn from the banking account into the electronic wallet is limited by a predetermined amount.
9) An electronic financial transaction system comprising: a mobile communication device configured with the function of electronic wallet; a transaction recording server configured to maintain transaction registry; and a universal web based banking interface to connect electronic wallet to one or more banking accounts.
10) An electronic financial transaction system, as claimed in claim 9, wherein the mobile communication device comprises message encryption and decryption module for verifying the credentials of sender and receiver; a memory module storing the phone number, pass-code, details of transaction; and an output module for displaying a message for electronic financial transactions.
11) An electronic financial transaction system, as claimed in claim 10, wherein the encryption module utilizes RSA 1024/2408 public key encryption approach to achieve message encryption for security purposes.
12) An electronic financial transaction system, as claimed in claim 9, wherein the electronic wallet feature of the mobile communication device is linked to its memory and associated IMEI number.
13) An electronic financial transaction system, as claimed in claim 9, wherein the mobile
communication device is provided access to banking account upon receipt of the matching personal identification number and account number.

14) An electronic financial transaction system, as claimed in claim 9, wherein the
telecommunication network is isolated from the mobile communication device for secure message transmissions.
15) An electronic financial transaction system, as claimed in claim 9, wherein each
transmitted message have a predefined reception time and gets destmcted in case of delivery failure.
16) An electronic financial transaction system, as claimed in claim 15, wherein a time based
destructor function hosted on the system destructs the message if the time taken by the system for transaction, as recorded by message tagged with transaction ID containing the system time, is beyond the predefined reception time.