Method for authenticating a payment transaction by verifying mobile device and authentication terminal locations

摘要

A method of authenticating a payment transaction between a merchant and a customer in an electronic payment system is described. Transaction details are received at a merchant mobile device 7, the geo-location of the merchant mobile device 7 and an authentication terminal 13 are compared to verify that the device and terminal are within a predefined geographical distance at the time the payment transaction is processed, and the customer is authenticated by means of an authentication token 17 presented by the customer at the authentication terminal 13.