Analysis Server for Mobile Wallet Spending Tracking
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional payment card systems are unable to effectively track consumer spending habits when consumers use mobile wallet applications, as these transactions often bypass the traditional payment network, limiting the ability to collect and analyze data on new payment channels.
Innovation Solution
An analysis server within the payment network automatically identifies changes in spending behavior before and after the adoption of a mobile wallet service by aggregating data from multiple consumers, inferring statistical properties of payments made using mobile wallets, even when these transactions do not directly involve the payment network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If consumers use mobile wallet applications for payments, then payment convenience and speed are improved, but the payment network's ability to track and collect spending information deteriorates
Solution Approach 1:
The patent introduces an intermediary analysis server that acts as a mediator between the mobile wallet ecosystem and the payment network. This server collects spending information from multiple sources including mobile wallet transactions, traditional card payments, and merchant data, then processes and aggregates this information to provide comprehensive spending analytics back to the payment network, thereby recovering the lost tracking capability
Solution Approach 2:
The system implements feedback mechanisms where the analysis server continuously collects transaction data, analyzes spending patterns, and feeds this information back to the payment network. This creates a closed-loop system that maintains awareness of consumer spending habits across all payment channels including mobile wallets, ensuring the payment network retains valuable spending information despite the shift to alternative payment methods
2Measurement precision
If the payment network collects detailed spending information from all transactions, then data quality and analytical value are improved, but system complexity and data processing requirements worsen
Solution Approach 1:
The patent segments the data collection and analysis function into a separate analysis server that operates independently from the core payment processing infrastructure. This segmentation allows the payment network to maintain its simple, efficient transaction processing while the analysis server handles the complex task of collecting, aggregating, and analyzing spending data from multiple sources including mobile wallets, traditional cards, and merchant systems
Solution Approach 2:
The analysis server is designed as a universal platform that can collect and analyze spending information from multiple payment channels and sources through a single system. It handles data from mobile wallet transactions, traditional card payments, and direct merchant integrations, providing comprehensive spending analytics without requiring separate systems for each payment method, thereby managing complexity while maintaining high data quality
Data Source
AI summary
A server, with access to information about the spending of consumers, is operative to register when any of the consumers develops a new payment channel which is not tracked by a payment network. In respect of such consumers, the server automatically analyses the tracked spending behavior of the consumers before and after the new spending channel is opened, to identify differences between the spending behavior before and afterwards. By aggregating this information among multiple consumers, and multiple merchant classes, the server obtains data characterizing consumer spending using the new payment channel.