PayOne Files Mobile Payment Patent Infringement Lawsuit Against The Home Depot

Alleges the use of PayPal’s in-store checkout system at The Home Depot retail stores infringes multiple PayOne patents

PayOne (, formerly PaymentOne Corporation,a global leader in mobile payments and carrier billing, announced today that it has filed a patent infringement lawsuit against The Home Depot, Inc. in the Northern District of California. In its complaint, PayOne asserts that The Home Depot retail store deployment and use of PayPal’s in-store checkout infringes on multiple PayOne patents including the use of a mobile phone number and a PIN (personal identification number) to complete the checkout process and payment at point of sale.

The complaint seeks unspecified damages and a court-ordered injunction against future infringement by The Home Depot. The asserted PayOne patents include United States Patent No. 7,848,500, entitled “Method And Apparatus To Validate A Subscriber Line”; and United States Patent No. 7,848,504, entitled “Method And Apparatus To Validate A Subscriber Line.” A complete list and copy of PayOne’s patents are available at

For more than 10 years, PayOne has been at the forefront of mobile payments, developing technologies for streamlining commerce and enabling shoppers to instantly use their phone and accounts tied to the phone to simplify the payment and checkout experience. PayOne’s platform and proprietary technologies enable, among other solutions, the simple use of a mobile phone number and Personal Identification Number (PIN) to instantly transact with a merchant at retail point of sale or in a virtual environment. The patents further cover technology in PayOne’s real-time authentication and fraud control system to validate, execute, and settle financial transactions using a variety of funding methods, including accounts tied to the mobile number as well as credit/debit accounts and pre-paid cards for physical and digital goods and services.

“Since 2000, PayOne has invested significant time and money developing its proprietary mobile payment technologies designed to simplify the checkout process and the PayOne systems have been deployed by digital merchants across the globe,” said Joe Lynam, president and CEO of PayOne. “The ‘mobile wallet wars’ have moved beyond the digital world into point of sale, but now face adoption challenges and substantial friction with consumer setup requirements, security concerns and lack of merchant required NFC infrastructure. PayOne’s technology solves these challenges by enabling an ‘instant wallet’ capability that can be extended to the retail and physical world for billions of consumers worldwide, with no pre-registration or friction at point of sale, and no NFC infrastructure required.”

Click to Tweet: PayOne files patent infringement lawsuit against Home Depot: PayPal in-store checkout infringes on multiple PayOne patents

The number of mobile-connected devices is set to exceed 10 billion, more than the number of people on earth, by the end of this year (source: The Cisco® Visual Networking Index (VNI) Global Mobile Data Traffic Forecast Update). These connected devices all typically have an existing billing relationship and can be instantly enabled for mobile payment. Given the ubiquity of mobile devices with existing billing relationships, the opportunity for mobile payments through an ‘instant wallet’ such as PayOne’s technology enables now far exceeds the estimated 2 billion credit card holders on a global basis.

PayOne and the PayOne Global Carrier Network™ PGCN currently provide the ability for over 4 billion consumers in over 80 countries to utilize their mobile phone for secure digital mobile payments, typically with just 1-2 steps. With PayOne’s ‘instant wallet’ approach no credit card or sensitive financial information is required as consumers can simply choose to pay using their mobile phone number and a secure pin.

PayOne is represented in this action by the law firm Niro, Haller & Niro, Ltd.

About PayOne

PayOne is the global leader in mobile payments and industrial strength carrier billing. The company pioneered “no credit card required” payments and has a 10-year track record in payment services that connect digital merchants, social media publishers, content providers, mobile app developers and network operators. PayOne has generated over $5 billion in new digital revenue for brand name clients including Blizzard Entertainment and America Online. The PayOne Global Carrier Network™ covers 80 countries, over 1100 network operators and enables over 4 billion worldwide consumers to do mobile commerce. The company has a robust patent portfolio covering mobile commerce, fraud prevention, authentication, and alternative payments. Previously called PaymentOne, PayOne is profitable, privately held, and based in the Silicon Valley.


Melissa Burns
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