Device-based transaction authorization

A method for handling requests for payment without user involvement comprising:

• receiving, in a mobile device from a merchant device, a transaction request message, the transaction request message specifying transaction attributes comprising a merchant identifier, a monetary amount and an indication of an ongoing service for a proposed payment transaction involving a user of the mobile device and a merchant;
• comparing, by the mobile device, the transaction attributes with a permitted transaction rule stored in the mobile device;
• determining, by the mobile device, that the transaction attributes satisfy the permitted transaction rule confirming that the transaction request was pre-authorized by the user;
• approving, by the mobile device, the proposed transaction without user involvement;
• generating, by the mobile device in response to the approving, a transaction cryptogram;
• and
• transmitting, by the mobile device, the transaction cryptogram to the merchant device for use in completing the proposed payment transaction.