Computer system and computer-implemented method for authenticating a contactless payment transaction

A customer electronic device for authenticating a customer in connection with an offline contactless payment transaction, the customer electronic device comprising:

• a biometric sensor;
• an operating system including an authentication module and a cryptography module;
• a mobile application installed at the customer electronic device, the mobile application including a verification module and an access module, the verification module and the access module in communication with the cryptography module of the operating system;
• and
• a local database accessible by the operating system and the mobile application, the local database including a transaction personal identification number (PIN) in an encrypted form and a registered customer identifier input;
• wherein the customer electronic device is configured, during an offline contactless payment transaction between the customer electronic device and a merchant terminal, wherein the merchant terminal is offline, to:
• receive, by the authentication module of the operating system, from the biometric sensor, a customer identifier input, the customer identifier input including a biometric of a customer associated with the customer electronic device, the biometric including at least one of:
• a fingerprint, a facial recognition, an iris recognition, a voice recognition, and a gesture;
• authenticate, by the operating system, the customer based on a comparison of the received customer identifier input and the registered customer identifier input in the local database;
• in response to a successful authentication of the customer, derive, by the cryptography module of the operating system, a cipher from a key generated by the operating system and provide the cipher to the verification module;
• receive, by the verification module of the mobile application, the cipher from the cryptography module of the operating system;
• in response to receiving the cipher at the verification module, provide, by the access module of the mobile application, to the cryptography module of the operating system, an instruction to decrypt the transaction PIN;
• in response to the instruction provided by the access module of the mobile application, retrieve, by the cryptography module of the operating system, the transaction PIN from the local database, initialize, by the cryptography module of the operating system, the cipher in the customer electronic device using the key generated by the operating system, and decrypt, by the cryptography module of the operating system, the transaction PIN based on the initialized cipher;
• receive, by the access module of the mobile application, from the cryptography module of the operating system, the transaction PIN once decrypted;
• access, by the access module of the mobile application, a payment token stored in the local database based on the transaction PIN, the payment token associated with payment account details for processing the offline contactless payment transaction to a payment account of the customer;
• and
• transmit the payment token to a payment network, wherein the payment token is indicative of an offline authentication of the customer, within the customer electronic device and independent of the merchant terminal, thereby enabling processing of the offline contactless payment transaction.