A cellular phone payment system for making payment for goods or service, which comprises three parts: 1) a user's cellular phone, which could also be any other form of mobile communications device provided that it can be linked to the public phone system, 2) an on-street vending machine, and 3) a remote payment auto-attendant computer with modem, which can be accessed by the public phone system. The user's cellular phone is the communications link or conduit used to access the remote payment auto-attendant computer, as well as to relay instructions to the user once user verification has been completed. The user calls the auto-attendant, authenticates his/her identity, and then is given instructions on how to make remote cellular payment on the vending machine in question. The user follows the instructions, which consists of indicating what good/service is being purchased, and then entering a sequence of challenges and responses between the remote auto-attendant computer and the vending machine to validate and confirm payment on the machine. The user uses the phone keypad and the keypad on the vending machine as the data entry means. Once the payment cycle is successfully completed, the payment will have been securely authenticated, the good/service provided, and the users preferred payment method, has been debited the corresponding amount. The payment will have been accomplished with the vending machine offline.
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