Apple files patent for digital wallet service that pays users to view advertisements
An interesting Apple patent application discovered on Thursday describes a hybrid digital wallet and billing service that issues credits and tokens to users, which can then be exchanged for real world goods or services like a cellular phone bill.
Source: USPTO
The invention, published by the U.S. Patent and Trademark Office, carries the innocuous title "Method and system for managing credits via a mobile device," but is really a wide-ranging virtual currency solution that covers cell bill payments, tangible goods purchases, peer-to-peer money transfer, and more.
As seen in the patent's abstract, a so-called "digital wallet" is central to the system's functionality, with credits having monetary value being delivered and stored on a mobile device. These credits are tied to an account, or billing system, that keeps track of how the virtual currency is being used.
The patent discusses a bill payment system in which credits can be added to an account on a pre- or post-paid schedule, with the total being depleted over time based on usage for the former, or accounted for after a set time period in the latter.
In one embodiment, the billing system measures and compares usage of the service with a free or subsidized balance allotted to each user. Interestingly, the language notes that instead of sending invoices for said services to the user, this method allows for advertisers to be billed directly.
From the patent description:
In another embodiment, "tokens" are distributed to users from various providers, such as an advertiser, which can then be used to offset a portion of a wireless service bill. Issuers can also send vouchers, coupons and the like via a generated code that is transferred through the digital wallet service server and/or the billing system.
While the tokens and coupons may remain in the digital domain when applied to cell bills, the code generation allows users to purchase real world items via point of sale terminals. Much like the current implementation of Apple's Passbook, these coupons can be stored on a mobile device to be traded for goods at a later date. In addition, the invention allows for lines of credit to be created, as well as a provision for connecting with bank accounts.
Finally, one embodiment allows for the token provider to be another subscriber. Friends or family can text or otherwise send tokens to a user's mobile device or, alternatively, the user may request credit from the provider.
Such a solution would be a boon for cellular carriers in developing nations, where subscribers are keen to buy smartphones like Apple's iPhone, but may not be able to afford the device or necessary data service. Apple is already making aggressive pricing moves in such countries, and recently found success in India as sales jumped 400 percent over a four month period.
Also interesting is the origin of Thursday's patent application, which was first filed for in Great Britain in 2008 before being terminated and reassigned to Apple. As listed on the USPTO's website, the inventors, Janne Aaltonen and Sami Saru, are both tied to a Finnish IP management and creation company called CVON Innovations. Not much is known about the firm, though a quick search shows it has been active in since 2008. Apple has been assigned at least one other patent from CVON regarding an advertisement delivery system for mobile devices.
Source: USPTO
The invention, published by the U.S. Patent and Trademark Office, carries the innocuous title "Method and system for managing credits via a mobile device," but is really a wide-ranging virtual currency solution that covers cell bill payments, tangible goods purchases, peer-to-peer money transfer, and more.
As seen in the patent's abstract, a so-called "digital wallet" is central to the system's functionality, with credits having monetary value being delivered and stored on a mobile device. These credits are tied to an account, or billing system, that keeps track of how the virtual currency is being used.
The patent discusses a bill payment system in which credits can be added to an account on a pre- or post-paid schedule, with the total being depleted over time based on usage for the former, or accounted for after a set time period in the latter.
In one embodiment, the billing system measures and compares usage of the service with a free or subsidized balance allotted to each user. Interestingly, the language notes that instead of sending invoices for said services to the user, this method allows for advertisers to be billed directly.
From the patent description:
Since the billing system is coupled to the communication network on which a credit carrying mobile device is operating, it can monitor usage patterns in real time. Thus, as a branch of this system, advertisements can be delivered to a plurality of mobile devices via messaging service or other wireless data service.Other techniques to provide subsidized or free telephone services to the users are also envisioned. For subsidized telephone services, the users may be responsible for a portion of their usage and thus they would be interested in eliminating unnecessary use of such telephone services.
In another embodiment, "tokens" are distributed to users from various providers, such as an advertiser, which can then be used to offset a portion of a wireless service bill. Issuers can also send vouchers, coupons and the like via a generated code that is transferred through the digital wallet service server and/or the billing system.
While the tokens and coupons may remain in the digital domain when applied to cell bills, the code generation allows users to purchase real world items via point of sale terminals. Much like the current implementation of Apple's Passbook, these coupons can be stored on a mobile device to be traded for goods at a later date. In addition, the invention allows for lines of credit to be created, as well as a provision for connecting with bank accounts.
Finally, one embodiment allows for the token provider to be another subscriber. Friends or family can text or otherwise send tokens to a user's mobile device or, alternatively, the user may request credit from the provider.
Such a solution would be a boon for cellular carriers in developing nations, where subscribers are keen to buy smartphones like Apple's iPhone, but may not be able to afford the device or necessary data service. Apple is already making aggressive pricing moves in such countries, and recently found success in India as sales jumped 400 percent over a four month period.
Also interesting is the origin of Thursday's patent application, which was first filed for in Great Britain in 2008 before being terminated and reassigned to Apple. As listed on the USPTO's website, the inventors, Janne Aaltonen and Sami Saru, are both tied to a Finnish IP management and creation company called CVON Innovations. Not much is known about the firm, though a quick search shows it has been active in since 2008. Apple has been assigned at least one other patent from CVON regarding an advertisement delivery system for mobile devices.
Comments
Apple was the one company that didn't bombard their users with useless ads 24/7.
No they seem to plan ads everywhere (iRadio as well), this sucks so bad.
Are you both myopic in thought? How in the hell do you think the Apple iTV and Service Provider contracts will ever arrive without Advertisements?
Quote:
Originally Posted by japm
The ONE thing I really loved about Apple was NO F-ING ADS.
Apple was the one company that didn't bombard their users with useless ads 24/7.
No they seem to plan ads everywhere (iRadio as well), this sucks so bad.
They could be doing what I like to call "patent trapping". If they are, they would just be patenting in and around their competitors core business and products to make their competitors business expansion more difficult. It doesn't mean Apple is actually going to do this in their products.
EDIT: After reviewing the details and assignment comments.... It looks more like Apple is buy digital wallet IP from third parties. Looks like they are learning after all.
If Apple iTV moves beyond vaporware those ads may be, and IMO likely will be served by Apple not the broadcasters. Same with iRadio. They'll almost certainly be targeted to the individual based on their search. location, travel or other personal data. I think that's going to garner some complaints, with a dose of teasing from "the other side". Apple hasn't generally been viewed as a data-mining company collecting info from it's users to better serve the advertisers (altho they do). Essentially Apple would be clearly holding you out to be the product to steal a term sometimes thrown at Google. it will be even more apparent if the Apple ad exchange rumors turn out to be accurate.
http://www.businessinsider.com/apple-iad-and-iradio-2013-6
I think that's what's going to bother some Apple users who have been told repeatedly and vociferously that collecting data on users and serving targeted ads as Google does is "evil" and invasive and something Apple would never do. Ever. There's going to have to be an effort to change the perception that more pertinent advertising and product suggestions based on your personal interests just isn't acceptable.
Then cable and premium channels came along and made us pay for content, and watch ads!
The right advert in front of the right person at the right time is an incredibly useful service. It's something google actually does fairly well.
The trick will be if Apple 'thinks different' about advertising and puts the user in control of what adverts they are exposed to.
I agree with most of the above.
But more than just a currency management system, it becomes a currency itself.
Consider Today:
You go to BestBuy or their online site and buy 3 iTunes gift cards for the kids -- paying with cash, credit or debit card.
You give or send the cards to the kids -- and they individually scratch and enter the code into their iTunes account.
Next month you pay the original credit card bill for the 3 gift cards with another set of transactions -- transfer money from savings to checking and online bill pay.
Consider Tomorrow:
You go online as above, and purchase "iTunes Dollars" for the total of the 3 original gift cards -- paying automatically with a charge (due in 30 days) to your iTunes account.
Separately, or as part of the original transaction, you distribute the gifts of "iTunes Dollars" directly to the kids individual iTunes accounts -- or through a combination of texts, emails, bumps, WiFi -- possibly scheduled through a calendar app. It's painless -- there is no exchange of physical cards, scratching and entering codes...
In 30 days, the original charge is due for payment in your iTunes account -- it can be paid by any iTunes Store credit you have in your account -- or charged to the credit card backing the account.
This example was just for buying and giving iTunes gift cards in the form of "iTunes Dollars"...
What if you could use these virtual dollars to buy other things... any things... food, clothing, gasoline, Disneyland passes...
For those who do not have a credit card backing their individual iTunes account, the account could be used as a virtual savings/checking/debit account -- possibly earning interest. It could be used to build credit history and establish a credit rating.
And the recipient of any of these "iTunes Dollars" could, in turn, regift them to friends and family…
As to collection and payment of taxes -- that is the responsibility of the seller of the goods -- not for the currency service.
Sent from my iPad
Hope they ditch the credits/tokens idea and just stick with $/£/etc value. Points and virtual currencies are a nuisance.
I don't like unit credits much either, I've had a video credit on iTunes for ages now that I received as a refund for a dud TV episode that was included in a series pass. When am I ever going to use that? Who buys individual TV episodes? I only ever buy seasons.
Extremely targeted ad/links that you choose to watch. Then that watching earns credits towards offsetting the cost of the content you choose to watch and the throughput data costs that deliver the content to you. Maybe the hardware costs too!
Its the "digital age's" version of original commercial TV. Let the "sponsor" pay for the creative content. The difference is that then advertising was "forced" upon us, where now we can choose, those choices can be logged and monetized, and we get real value as that system offsets our costs. ...and advertisers get real value.
So THAT, IMHO will be the new Apple TV...
Steve
Go AAPL!
People could use their phones as easily and anonymously as paying cash and even get paid in cash for things like mowing lawns or cleaning the house (allowances).
C'mon, Apple help put the central banking system out of commission and we're golden!
Originally Posted by japm
The ONE thing I really loved about Apple was NO F-ING ADS.
Apple was the one company that didn't bombard their users with useless ads 24/7.
No they seem to plan ads everywhere (iRadio as well), this sucks so bad.
False concern out the wazoo…
Apple owns many draconian patents that, if implemented, would make for absolutely horrible experiences, bombarding people with ads or preventing them from viewing their content.
Thing is, they're never going to use them. Apple owns them so that no one else can do it, either.
Quote:
Originally Posted by Gatorguy
If Apple iTV moves beyond vaporware ...
The Apple iTV is not vaporware, it's a rumor / speculation.
Vaporware are announced products that have yet to materialize in any other form other than concept.
Just a nitpick. Sorry.
Your scathing post complaining about Apple going after advertising dollars by marketing their users when iRadio becomes official should be epic.;)
In current iterations there is no additional benefit to users beyond the presumably free (ad supported) service. Users actually getting "paid" to listen to or watch ads would be a paradigm shift.
Originally Posted by mjtomlin
The Apple iTV is not vaporware, it's a rumor / speculation.
Vaporware are announced products that have yet to materialize in any other form other than concept.
Just a nitpick. Sorry.
Don't apologize. He did it on purpose. It was Gatorguy, after all.
Originally Posted by Gatorguy
Your scathing post complaining about Apple going after advertising dollars by marketing their users when iRadio becomes official should be epic.
Oh, I certainly believe there will be audio ads if they announce a radio service. The alternative is paying for radio, which people won't want to do. Has XM really taken off at all? The difference will be in the way said ads are handled.
however, IMO it would be great for:
1) parents to purchase a certain amount of tokens for their kids, rather than dealing with the App Store returns and fiasco;
2) and perfect for purchasing credits/tokens in the rest of the world that doesn't have access to credit cards (even here in Germany, many people don't own one);
3) billing straight through a provider, and getting rid of the high cost of printing and maintaining gift/store cards.
Appears that Apple is quite serious about growing their customer base, because it just this type of plan/patent that would be most useful for the "Rest of the World™".
If you hadn't been so vocal about how evil it is to track users, collect data from them and serve you up as the product to advertisers I would have taken your post as a hint you weren't going to complain about Apple offering targeted ads if they do it.
Originally Posted by Gatorguy
If you hadn't been so vocal about how evil it is to track users, collect data from them and serve you up as the priduct to advertisers I would have taken your post as a hint you weren't going to complain about Apple offering targeted ads if they do it.
If my information is being used to target me ads, I'll complain about it. I'd prefer nothing of that sort occurring.
In fact, the easiest thing to do is to NOT touch users' information, serve up ALL kinds of ads, and let the user manually decide whether they want to see said type of ads anymore by touching/clicking/whatever the ad itself (longer view time…) and selecting "No, I don't want to see tampon ads anymore" or "Yes, I'd like to see exclusively tampon ads" or "Nah, but show me health product stuff." or whatever. Build the "targeting" from willful, not stolen, information.