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This paper presents a new type of digital payment method and algorithm for embedded systems including mobile phone and other handheld devices. In the conventional mobile payment system, a payment signal transmitting device and a wireless internet connection device are separately provided to mobile systems. Therefore, the production cost of the mobile devices increases, and the complexity and the size of the mobile devices grow. In order to solve the problems, a new digital payment method using light signal containing payment-related information is suggested for mobile phone and embedded devices. The new method provides an economic and efficient solution to mobile payment system by updating embedded software without need of additional hardware modules to mobile devices.