System and method for protecting location data

A location server computer comprising:

• a processor;
• and
• a non-transitory computer-readable medium comprising code executable by the processor to implement a method comprising:
• receiving encrypted location information from a mobile device, wherein the encrypted location information is associated with a location of the mobile device encrypted with a public key;
• receiving a location request message from an interaction processing server;
• partially decrypting the encrypted location information with a first private key share to form partially decrypted location information;
• and
• transmitting, to the interaction processing server, a location response message with the encrypted location information and the first partially decrypted location information, wherein the interaction processing server uses a second private key share to partially decrypt the encrypted location information to form second partially decrypted location information, and then form decrypted location information from the first partially decrypted location information and the second partially decrypted location information.

A method comprising:

• receiving, by an interaction processing server, an authorization request message from a resource provider computer for an interaction;
• sending, by the interaction processing server, to a location server computer, a location request message;
• receiving, by the interaction processing server from the location server computer, first partially decrypted location information and encrypted location information, wherein the first partially decrypted location information was decrypted using a first private key share;
• decrypting, by the interaction processing server, the encrypted location information using a second private key share to form second partially decrypted location information;
• determining, by the interaction processing server, decrypted location information using the first partially decrypted location information and the second partially decrypted location information;
• and
• initiating authorizing, by the interaction processing server, the interaction based on at least the decrypted location information.