US Patent 8467807 Mobile coupon with varying discount based on consumer location

A method for distributing a location aware mobile coupon (LAMC) based on a current location of a consumer using a mobile device. The method includes: receiving the current location of the mobile device from a location aware service (LAS) provider; comparing the current location of the mobile device to a retail location of a merchant to determine that the consumer is in proximity to the retail location of the merchant; obtaining pre-generated LAMC terms of the merchant specifying a maximum price discount of an item offered by the merchant; determining, in response to determining that the consumer is in proximity to the retail location, a price discount of the LAMC using a pre-determined formula based on the maximum price discount and a distance of the consumer to the retail location; and sending the LAMC including the price discount to the mobile device used by the consumer.