System and method for converting mobile subscriber airtime and data credits into cash equivalents and facilitating financial transactions using blockchain technology

Abstract

The present invention relates to a system and method for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents and facilitating financial transactions without the need for electronic wallets or deposit-taking mechanisms. The system comprises a Digital Airtime Conversion Engine (DACE) and an Airtime Vault, which together enable subscribers to convert unused airtime and data credits into cash equivalents or use them directly for payments. The Airtime Vault, based on blockchain technology, ensures secure, transparent, and immutable storage and transfer of credits. The system allows subscribers to request conversions via a user interface accessible through mobile applications or USSD, generating a Secure Unique Confirmation Code (SUIC) for secure transactions. The SUIC is verified by dispensing agents or devices, such as ATMs or POS terminals, to release cash equivalents or goods and services.

Description

[0001] SYSTEM AND METHOD FOR CONVERTING MOBILE SUBSCRIBER AIRTIME AND DATA CREDITS INTO CASH EQUIVALENTS AND FACILITATING FINANCIAL TRANSACTIONS USING BLOCKCHAIN TECHNOLOGY

[0002] FIELD OF THE INVENTION

[0003] The present invention relates to the field of mobile telecommunications and financial technology (FinTech). More specifically, it pertains to systems and methods for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents and facilitating financial transactions without the need for electronic wallets or deposit-taking mechanisms.

[0004] The invention leverages blockchain technology to provide a secure, transparent, and efficient platform for mobile subscribers to utilize their airtime and data balances for cash withdrawals, payments for goods and services, and trading between mobile service providers. The system integrates telecommunications infrastructure with financial transaction processing, promoting financial inclusion and enhancing the utility of mobile airtime and data credits in both prepaid and postpaid subscriber environments.

[0005] BACKGROUND TO THE INVENTION

[0006] The evolution of mobile telecommunications has significantly expanded the functionalities and services available to subscribers. Among these services, the use of Global System for Mobile Communications (GSM) airtime and data credits has traditionally been limited to voice calls, messaging, and internet access. However, the potential for leveraging these credits in broader financial transactions has not been fully realized, particularly in regions where access to traditional banking services is limited.

[0007] In many developing countries, a large portion of the population remains unbanked or underbanked, relying heavily on mobile phones for financial transactions. Mobile money services, such as electronic wallets, have emerged as popular solutions, enabling users to store, send, and receive money using their mobile devices. Despite their success, these services often require electronic wallets and deposittaking mechanisms, which can create barriers to entry for users due to regulatory requirements, technical complexities, or lack of infrastructure.

[0008] US1 1968727B2 describes a method for facilitating peer-to-peer communication and financial transactions using a personalized Universal Resource Locator (PURL). The PURL is generated by a session-controlling Internet platform and is used to establish a communication session between a sender and a recipient. The system relies on a permission-controlling schema and involves the use of digital wallets associated with the identities of the sender and recipient. The method includes transmitting the PURL to the recipient, receiving a mobile-originating communication with a multi-part address signaling sequence, and executing an activity (e.g., a financial transaction) between the digital wallets after verifying the communication data. In contrast, the present invention focuses on converting GSM airtime and data credits into cash equivalents without requiring electronic wallets or deposit-taking mechanisms. The invention utilizes a Digital Airtime Conversion Engine (DACE) and an Airtime Vault based on blockchain technology to securely manage and convert airtime and data credits. Unlike the prior art, which relies on digital wallets and peer- to-peer communication links, the present invention enables subscribers to directly convert their airtime and data balances into cash equivalents or use them for payments at dispensing agents or devices. Additionally, the invention facilitates the trading of airtime and data credits between mobile service providers, a feature not addressed in the prior art.

[0009] US20240196215A1 describes a system for controlling access to access- restricted digital resources using an access-controlling platform. The platform generates an expectation data record that includes an access code and an identity linked to a computing device. The system receives a mobile-originating communication containing a specific access code and identity, confirms the expectation data record, and instructs a cellular communications network to perform actions based on the data. Once confirmed, the system unlocks the access-restricted digital resource for the user. This prior art focuses on access control mechanisms for digital resources and relies on mobile communications and cellular networks to authenticate and grant access.

[0010] In contrast, the present invention is focused on converting GSM airtime and data credits into cash equivalents and facilitating financial transactions without requiring electronic wallets or deposit-taking mechanisms. The invention utilizes a Digital Airtime Conversion Engine (DACE) and an Airtime Vault based on blockchain technology to securely manage and convert airtime and data credits. Unlike the prior art, which is centered on access control for digital resources, the present invention enables subscribers to directly convert their airtime and data balances into cash equivalents or use them for payments at dispensing agents or devices. Additionally, the invention facilitates the trading of airtime and data credits between mobile service providers, a feature not addressed in the prior art. Furthermore, existing systems do not fully utilize the value of airtime and data credits as a financial resource. Subscribers often accumulate unused airtime or data balances that could be converted into cash equivalents or used to pay for goods and services directly. Current solutions lack a seamless, secure, and efficient mechanism to enable such conversions without relying on intermediary systems like electronic wallets.

[0011] The present invention addresses these challenges by introducing a novel system and method that allows mobile subscribers to convert their airtime and data credits into cash equivalents or use them directly for financial transactions. This system eliminates the need for electronic wallets or deposit-taking mechanisms, simplifying the process for users and promoting financial inclusion. By integrating blockchain technology, the invention ensures secure, transparent, and immutable transaction logging, enhancing trust and reliability in the system.

[0012] Additionally, the invention enables trading of airtime and data credits between mobile service providers, allowing for efficient redistribution of unused credits. This feature not only benefits subscribers but also provides mobile network operators with a new revenue stream and improved resource management.

[0013] In summary, the invention bridges the gap between telecommunications and financial services, offering a versatile, secure, and efficient solution for converting airtime and data credits into cash equivalents and facilitating financial transactions. It represents a significant advancement in the field of mobile financial technology, addressing the needs of both subscribers and service providers in an increasingly connected world. 6

[0014] OBJECT OF THE INVENTION

[0015] The primary object of the present invention is to provide a secure, efficient, and versatile system and method for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents and facilitating financial transactions without the need for electronic wallets or deposit-taking mechanisms.

[0016] Enable Financial Inclusion: Provide mobile subscribers, particularly in underserved or unbanked regions, with the ability to convert their airtime and data credits into cash equivalents or use them directly for payments, thereby promoting financial inclusion and accessibility.

[0017] Simplify Financial Transactions: Eliminate the complexity and barriers associated with traditional mobile money services by allowing subscribers to utilize their existing airtime and data balances for financial transactions without requiring additional accounts or intermediaries.

[0018] Enhance Utility of Airtime and Data Credits: Expand the functionality of airtime and data credits beyond traditional telecommunications services, allowing subscribers to use them as a financial resource for cash withdrawals, payments for goods and services, and other transactions.

[0019] Ensure Security and Transparency: Leverage blockchain technology to provide a secure, transparent, and immutable platform for recording and managing transactions, ensuring trust and reliability in the system. Facilitate Trading Between Service Providers: Enable mobile network operators and service providers to trade excess airtime and data credits with one another, optimizing resource utilization and creating new revenue streams.

[0020] Provide a Seamless User Experience: Offer a user-friendly interface, accessible via mobile applications or LISSD, that allows subscribers to easily request conversions, view balances, and manage transactions in real-time.

[0021] Support Real-Time Monitoring and Analytics: Incorporate real-time data processing, predictive analytics, and transaction logging to enhance system performance, provide insights, and ensure operational efficiency.

[0022] By achieving these objectives, the invention aims to bridge the gap between telecommunications and financial services, providing a transformative solution that enhances the usability, flexibility, and value of mobile airtime and data credits for subscribers and service providers alike.

[0023] SUMMARY OF THE INVENTION

[0024] In accordance with a first aspect of the invention, there is provided a system for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents, wherein the system may comprise: a Digital Airtime Conversion Engine (DACE) configured to interface with a subscriber management system, the airtime vault, the service dispensing point; an Airtime Vault configured to convert airtime and data store airtime and data credits converted into cash equivalents and facilitate their redistribution or resale; a user interface accessible via a mobile application or USSD, configured to allow subscribers to request conversions, view balances, and manage transactions; an Application programming interface (API) that provides an interface between the system and third party systems such as a subscriber management system; a secure communication means for transmitting data between the DACE, Airtime Vault, user interface, and dispensing agents or devices; a service dispensing point configured to verify a Secure User Identification Code (SUIC) and release cash equivalents or goods and services to subscribers; and a website enabling the subscriber to purchase goods and services online and make payment with SUIC.

[0025] There is also provided that the Airtime Vault may be based on blockchain technology to ensure secure, transparent, and immutable storage and transfer of airtime and data credits. 9

[0026] There is further provided that the DACE may be configured to facilitate the trading of airtime and data credits between mobile service providers, enabling the redistribution of excess credits.

[0027] There is also provided that the DACE may generate and distributes a Secure User Identification Code (SUIC) linked to a subscriber's identity, which is used to authorize cash withdrawals or payments at the service dispensing point.

[0028] There is further provided that the user interface may provide real-time alerts and notifications to subscribers and operators in case of system abnormalities or failures.

[0029] There is also provided that the DACE may store transaction data and generates immutable transaction logs using blockchain technology for historical analysis and auditing.

[0030] In accordance with a second aspect of the invention, there may be provided a method for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents, the method comprising: receiving a request from a subscriber to convert airtime or data credits into cash equivalents via a user interface; verifying the subscriber's available airtime or data balance by querying a subscriber management system; converting the requested airtime or data credits into cash equivalents using a Digital Airtime Conversion Engine (DACE); generating a Secure User Identification Code (SUIC) linked to the subscriber's identity using the DACE or the airtime vault; and securely transmitting the SUIC to the subscriber for use at a service dispensing point using the DACE or the airtime vault.

[0031] There is also provided that the converted airtime or data credits may be stored in an Airtime Vault based on blockchain technology, ensuring secure and immutable storage.

[0032] There is further provided that the method may include facilitating the trading of airtime and data credits between mobile service providers through the DACE.

[0033] There is also provided that the method may include dynamically adjusting system operations based on real-time data and predictive analytics to optimize performance and resource utilization.

[0034] There is further provided that the method may include generating immutable transaction logs using blockchain technology for auditing and historical analysis.

[0035] In accordance with a third aspect of the invention, there may be provided a system for facilitating financial transactions using GSM airtime and data credits, the system comprising: a Digital Airtime Conversion Engine (DACE) configured to interface with a subscriber management system, via an application programming interface (API) and process transaction requests; an Airtime Vault configured to store airtime and data credits converted into cash equivalents; a user interface accessible via a mobile application or LISSD, configured to allow subscribers to initiate transactions; and a service dispensing point configured to verify a Secure User Identification Code (Sil IC) and release cash equivalents or goods and services.

[0036] There is also provided that the system may be configured to allow subscribers to use airtime and data credits for point-of-sale payments and internet payments without requiring electronic wallets or deposit-taking mechanisms

[0037] There is further provided that the system may include a dashboard for real-time monitoring of transaction data and system performance, accessible to operators.

[0038] In accordance with a fourth aspect of the invention, there may be provided a method for reselling and trading airtime and data credits stored in an Airtime Vault, the method comprising: receiving a request from a merchant or automated system to resell or trade airtime or data credits via a user interface; verifying the availability of credits in the Airtime Vault using a Digital Airtime Conversion Engine (DACE); processing the resale or trade request and generating a unique voucher or transaction code; securely transmitting the voucher or transaction code to the requesting party; and updating the Airtime Vault to reflect the resale or trade of credits.

[0039] There may also be provided that the method includes using blockchain technology to ensure secure, transparent, and immutable recording of resale and trade transactions. 12

[0040] There may further be provided that the method includes enabling the redistribution of excess credits between mobile service providers to optimize resource utilization.

[0041] BRIEF DESCRIPTION

[0042] The invention will now be described, by way of example only, with reference to the accompanying drawings, in which:

[0043] Figure 1 - depicts a flow diagram of the system architecture for converting GSM airtime and data credits into cash equivalents.

[0044] Figure 2 - provides a flow diagram illustrating the communication and verification process between the Mobile Network Tower, Subscribers, Third-Party Apps, and Dispensing Devices for the conversion of GSM airtime and data credits into cash equivalents.

[0045] Figure 3 - illustrates the transaction process for converting GSM airtime and data credits into cash equivalents using a mobile device.

[0046] Figure 4 - presents a schematic illustration of the communication and interaction between subscribers, a mobile network tower, and various dispensing devices during the airtime-to-cash conversion process.

[0047] DETAILED DESCRIPTION OF THE INVENTION

[0048] While various inventive aspects, concepts, and features of the invention may be described and illustrated herein as embodied in combination in the exemplary embodiments, these various aspects, concepts, and features may be used in many alternative embodiments, either individually or in various combinations and subcombinations thereof. Unless expressly excluded herein, all such combinations and sub-combinations are intended to be within the scope of the present invention. Still further, while various alternative embodiments as to the various aspects, concepts, and features of the invention — such as alternative structures, configurations, methods, devices, and components, alternatives as to form, fit, and function, and so on — may be described herein, such descriptions are not intended to be a complete or exhaustive list of available alternative embodiments, whether presently known or later developed.

[0049] Those skilled in the art may readily adopt one or more of the inventive aspects, concepts, or features into additional embodiments and uses within the scope of the present invention even if such embodiments are not expressly disclosed herein. Still further, exemplary or representative values and ranges may be included to assist in understanding the present disclosure; however, such values and ranges are not to be construed in a limiting sense and are intended to be critical values or ranges only if so expressly stated. Moreover, while various aspects, features, and concepts may be expressly identified herein as being inventive or forming part of an invention, such identification is not intended to be exclusive, but rather there may be inventive aspects, concepts, and features that are fully described herein without being expressly identified as such or as part of a specific invention.

[0050] In Figure 1 , the diagram begins with the Airtime Vault Module, which manages airtime credits and facilitates trading with providers. This module acts as a repository for airtime credits that can be converted into cash or resold to subscribers and other mobile service providers. The Airtime Vault is based on blockchain technology, ensuring secure, transparent, and immutable storage and transfer of airtime and data credits (not shown). The Airtime Vault Module feeds into the Digital Airtime Conversion Engine (DACE). The DACE is responsible for the conversion of airtime credits into cash. It performs functions including conversion of airtime, verification of the subscriber's balance, and generation of the Secure Unique Confirmation Code (SUIC). The DACE facilitates the trading of airtime and data credits between mobile service providers, enabling the redistribution of excess credits.

[0051] A lateral process flows from the DACE to a box labelled "Secure Transmission of SUIC," indicating that the SUIC is securely transmitted from the DACE to the user. This step ensures the secure delivery of the unique confirmation code that is crucial for the cash dispensing process.

[0052] Following the DACE, the next component is the User Interface. This interface is accessible via a mobile application or web browser, allowing subscribers to request the conversion of airtime credits into cash, view balances, purchase airtime or data, and interact with the mobile service provider. The user interface provides real-time alerts and notifications to subscribers and operators in case of system abnormalities or failures.

[0053] The final component in the flow is the Dispensing Agent or Device. This entity is responsible for verifying the SUIC and releasing the cash equivalent, goods, or services to the subscriber. The interaction between the User Interface and the Dispensing Agent or Device facilitates the verification of the SUIC and the subsequent cash release.

[0054] The system allows subscribers to use airtime and data credits for point-of-sale payments and internet payments without requiring electronic wallets. Referring now to Figure 2, at the top of the diagram, the Mobile Network Tower is responsible for the secure data transmission of the SlIIC. It facilitates the communication between the central system and end-users by transmitting essential information securely.

[0055] Subscribers, shown on the left side under the Mobile Network Tower, use mobile devices to receive the SLIIC and interact with the system. Subscribers request the conversion of airtime to cash through their mobile devices, which also receive the SLIIC necessary for completing the transaction. On the right side, Third-Party Apps perform verification tasks. These apps play a role in confirming the validity of the SLIIC provided by the subscribers. They ensure the code is genuine and matches the corresponding transaction details before proceeding to the cash, goods, or services release stage.

[0056] At the bottom, Dispensing Devices, including ATMs, POS terminals, and other cash release mechanisms, complete the process. These devices interact with the Subscribers and Third-Party Apps to dispense cash once the SLIIC is verified. They represent the final point in the transaction, where the physical cash equivalent, goods, or services are handed over to the subscriber.

[0057] Process Flow:

[0058] The diagram flows from the Mobile Network Tower or other secure data connection such as a fibre link, which manages secure communication, down to the Subscribers and Third-Party Apps for SLIIC reception and verification. It then moves to the Dispensing Devices, which execute the cash release based on the successful verification of the SLIIC. This flow ensures a secure and reliable process from the initial request to the final dispensing of cash.

[0059] The system generates immutable transaction logs using blockchain technology for auditing and historical analysis. Turning to Figure 3, at the top left of the diagram, the DACE is depicted as the initial point for creating the Secure Unique Confirmation Code (SUIC). It performs three key passes in the process: o 1st Pass: Generates the SUIC. o 2nd Pass: Verifies the SUIC provided by the subscriber. o 3rd Pass: Authorizes the release of the cash equivalent, goods, or services to the subscriber.

[0060] • The DACE can also perform the following: o Balance inquiry. o Adding airtime credits. o Converting airtime credits into cash equivalents. o Generating SUIC. o Secure transmission of SUIC to the subscriber via the user interface or SMS.

[0061] Airtime Bank Module:

[0062] • The Airtime Bank Module, connected to a Database, stores and manages the subscriber's airtime credits. This module plays a crucial role in processing the conversion of these credits into a cash equivalent.

[0063] Subscriber’s Mobile Device:

[0064] • In the centre, a mobile device in the subscriber’s hand displays "Cash / Cash Equivalent". This represents the subscriber's interaction point for requesting airtime conversion and receiving the SUIC. Dispensing Devices and Third-Party Application:

[0065] • On the right side, the diagram shows three entities connected to the subscriber's mobile device: o Cash Dispensing Device: Facilitates the actual cash withdrawal. o Recipient Device: Could refer to other systems or agents authorized to handle cash distribution, such as point of sale. o Third-Party Application: Verifies the SUIC and authorizes the release of the cash, goods, or services.

[0066] Process Flow:

[0067] • The process begins with the DACE generating the SUIC and verifying it through the Airtime Bank Module and Software Program. The SUIC is securely transmitted to the subscriber's mobile device, which interacts with dispensing devices or third-party applications to complete the transaction. The verification by the third-party application or cash dispensing device leads to the release of cash, goods, or services to the subscriber. The DACE dynamically adjusts system operations based on real-time data and predictive analytics to optimize performance and resource utilization.

[0068] Now referring to Figure 4, the central element in the diagram is the Mobile Network Tower, which is representative of any secure data connection responsible for facilitating communication between subscribers' mobile devices and other components in the system. The network tower handles the transmission of information related to the airtime-to-cash conversion, including the Secure Unique Confirmation Code (SUIC). Subscribers:

[0069] • Two subscribers, depicted on either side of the network tower, are shown interacting with their mobile devices. These devices are used to send and receive transaction-related information, such as requesting airtime conversion, receiving the SUIC, and confirming the transaction details.

[0070] Third-Party Application:

[0071] • Connected to the network tower via dashed lines, the Third-Party Application plays a role in verifying the SUIC and authorizing the cash release. This application acts as an intermediary that validates the transaction information provided by the subscribers before cash can be dispensed.

[0072] Dispensing Devices:

[0073] • The diagram includes two types of dispensing devices: o PCS Terminal: Positioned at the top right, this device can dispense cash or facilitate transactions, release of goods and services after verifying the SUIC received from the subscriber. o ATM: Located at the bottom right, this device represents a traditional cash dispensing machine that interacts with the network tower to verify the SUIC and release the cash equivalent.

[0074] Process Flow:

[0075] • The arrows indicate the communication flow: o From Subscribers to Network Tower: Subscribers use their mobile devices to send transaction requests and receive the SUIC. o From Network Tower to Third-Party Application: The network tower transmits transaction data to the third-party application for verification. 20 o From Network Tower to Dispensing Devices: After verification, the network tower communicates with dispensing devices to authorize the SUIC. o From Dispensing Devices to Subscribers: Finally, subscribers interact with dispensing devices (ATMs or POS terminals) to withdraw cash or receive goods and services after successful verification.

[0076] The system enables the trading of airtime and data credits between mobile service providers, allowing for efficient redistribution of excess credits.

Claims

CLAIMS1. A system for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents, the system comprising: a Digital Airtime Conversion Engine (DACE) configured to interface with a subscriber management system, an airtime vault, and a service dispensing point; an Airtime Vault configured to store airtime and data credits converted into cash equivalents and facilitate their redistribution or resale; a user interface accessible via a mobile application or LISSD, configured to allow subscribers to request conversions, view balances, and manage transactions; an Application Programming Interface (API) providing an interface between the system and third-party systems, including the subscriber management system; a secure communication means for transmitting data between the DACE, Airtime Vault, user interface, and dispensing agents or devices; a service dispensing point configured to verify a Secure User Identification Code (SUIC) and release cash equivalents or goods and services to subscribers; and a website enabling subscribers to purchase goods and services online and make payment with SUIC.

2. The system of claim 1 , wherein the Airtime Vault is based on blockchain technology to ensure secure, transparent, and immutable storage and transfer of airtime and data credits.

3. The system of claim 1 , wherein the DACE is configured to facilitate trading of airtime and data credits between mobile service providers, enabling redistribution of excess credits.

4. The system of claim 1 , wherein the DACE generates and distributes a Secure User Identification Code (SUIC) linked to a subscriber's identity, which authorizes cash withdrawals or payments at the service dispensing point.

5. The system of claim 1 , wherein the user interface provides real-time alerts and notifications to subscribers and operators in case of system abnormalities or failures.

6. The system of claim 1 , wherein the DACE stores transaction data and generates immutable transaction logs using blockchain technology for historical analysis and auditing.

7. A method for converting Global System for Mobile Communications (GSM) airtime and data credits into cash equivalents, the method comprising: receiving a request from a subscriber to convert airtime or data credits into cash equivalents via a user interface; verifying the subscriber's available airtime or data balance by querying a subscriber management system; converting the requested airtime or data credits into cash equivalents using a Digital Airtime Conversion Engine (DACE); generating a Secure User Identification Code (SUIC) linked to the subscriber's identity using the DACE or the Airtime Vault; andsecurely transmitting the SUIC to the subscriber for use at a service dispensing point.

8. The method of claim 7, wherein the converted airtime or data credits are stored in an Airtime Vault based on blockchain technology, ensuring secure and immutable storage.

9. The method of claim 7, further comprising facilitating the trading of airtime and data credits between mobile service providers through the DACE.

10. The method of claim 7, further comprising dynamically adjusting system operations based on real-time data and predictive analytics to optimize performance and resource utilization.11 . The method of claim 7, further comprising generating immutable transaction logs using blockchain technology for auditing and historical analysis.

12. A system for facilitating financial transactions using GSM airtime and data credits, the system comprising: a Digital Airtime Conversion Engine (DACE) configured to interface with a subscriber management system via an API and process transaction requests; an Airtime Vault configured to store airtime and data credits converted into cash equivalents; a user interface accessible via a mobile application or LISSD, configured to allow subscribers to initiate transactions; anda service dispensing point configured to verify a Secure User Identification Code (SUIC) and release cash equivalents or goods and services.

13. The system of claim 12, configured to allow subscribers to use airtime and data credits for point-of-sale payments and internet payments without requiring electronic wallets or deposit-taking mechanisms.

14. The system of claim 12, further comprising a dashboard for real-time monitoring of transaction data and system performance, accessible to operators.

15. A method for reselling and trading airtime and data credits stored in an Airtime Vault, the method comprising: receiving a request from a merchant or automated system to resell or trade airtime or data credits via a user interface; verifying the availability of credits in the Airtime Vault using a Digital Airtime Conversion Engine (DACE); processing the resale or trade request and generating a unique voucher or transaction code; securely transmitting the voucher or transaction code to the requesting party; and updating the Airtime Vault to reflect the resale or trade of credits.

16. The method of claim 15, further comprising using blockchain technology to ensure secure, transparent, and immutable recording of resale and trade transactions.

17. The method of claim 15, further comprising enabling redistribution of excess credits between mobile service providers to optimize resource utilization.

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