Secure personal identification number entry for transactions using a portable electronic device

A method for authenticating a transaction, wherein the transaction is initiated using a payment card and a merchant portable electronic device, wherein the transaction requires authentication based on a personal identification number (PIN), and wherein an encrypted binary large object (BLOB) generated by a user portable electronic device based on the PIN is communicated to the merchant portable electronic device for authenticating the transaction, the method comprising:

• receiving, by a transaction service provider server, a first transaction authentication request from an acquirer server, wherein the first transaction authentication request comprises the encrypted BLOB communicated to the merchant portable electronic device;
• mapping, by the transaction service provider server, the transaction to a token;
• retrieving, by the transaction service provider server, a dynamic key based on the token;
• decrypting, by the transaction service provider server, the encrypted BLOB to determine the PIN;
• and
• sending, by the transaction service provider server, a second transaction authentication request to an issuer server, wherein the issuer server determines whether to authenticate the transaction based on the PIN.

A method for securely receiving a personal identification number (PIN), the method comprising:

• reading, by a merchant portable electronic device, a payment card to initiate a transaction;
• determining, by a point-of-sale application executed by the merchant portable electronic device, that the transaction requires a PIN;
• communicating, by the merchant portable electronic device, a request to a user portable electronic device to provide the PIN;
• receiving, by the merchant portable electronic device, an encrypted binary large object (BLOB) from the user portable electronic device, wherein the user portable electronic device generates the encrypted BLOB based on the PIN;
• and
• communicating, by the merchant portable electronic device, a transaction authorization request comprising the encrypted BLOB to a transaction service provider server for decryption.