Wireless Beacon Payment Token Transmission via Magnetic Field

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Solution Overview

Problem

Traditional payment methods, such as cash and credit cards, pose risks of theft and fraud, and existing payment technologies have not widely adopted wireless beacon communications for secure and convenient transactions at retail locations.

Innovation Solution

Implementing wireless beacon communications through magnetic card readers that use short-range wireless communication to transmit payment tokens, allowing users to complete transactions without physical cards by generating a payment token that mimics a magnetic card swipe, enabling secure and convenient payments through existing point of sale infrastructure.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional payment methods (cash, credit cards) are used, then payment transactions can be completed, but theft and fraud risks increase

Engineering Contradiction:

Improvepayment securityVSAvoidtheft and fraud risk

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent creates a digital copy of the payment card's magnetic stripe data by reading the magnetic field from the physical card and transmitting it wirelessly to the point-of-sale device. This digital copy serves as a replica of the original payment instrument, enabling contactless payment while reducing the risk of physical card theft and fraud

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent replaces the mechanical physical card swiping system with a wireless magnetic field transmission system. Instead of physically inserting or swiping a card, the system uses wireless communication to transmit payment data, eliminating the need for physical contact and reducing fraud opportunities

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Ease of operation

If wireless beacon communications are implemented, then convenient contactless payment is enabled, but existing payment infrastructure requires modifications

Engineering Contradiction:

Improvepayment convenienceVSAvoidinfrastructure modification

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent makes the existing magnetic card reader multi-functional by enabling it to read both traditional magnetic stripe cards and wireless beacon signals. The reader can operate in both contactless card reading mode and wireless beacon communication mode, allowing the same hardware to support multiple payment methods without requiring separate dedicated devices

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces a wireless beacon as an intermediary device between the customer's payment card and the point-of-sale system. The beacon receives payment data from the card and transmits it wirelessly to the reader, serving as a bridge that enables contactless communication while utilizing existing reader infrastructure

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If payment tokens are transmitted through magnetic field generation, then secure wireless payment is achieved, but the magnetic field must be range-limited to prevent unauthorized transmission

Engineering Contradiction:

Improvepayment token securityVSAvoidunauthorized transmission

Core Design Contradiction:

ReliabilityVSObject-affected harmful factors

Solution Approach 1:

The patent applies local quality by limiting the magnetic field's range and strength to a specific local area around the point-of-sale device. The field is designed to be strong enough for legitimate transactions within close proximity but naturally attenuates quickly, preventing unauthorized reading from a distance and ensuring security through spatial confinement

Inventive Principle:

Principle #3Local quality

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

This solution provides a secure and convenient payment method that reduces fraud risks and enhances user experience by allowing transactions using wireless beacons and magnetic field generation, integrating with existing payment systems without requiring changes to merchant infrastructure.

Implementation Method 1

the wireless beacon transmits the payment token to the magnetic card reader using magnetic field generation

Methodology Applied

Scientific EffectMagnetic field generation: Electromagnetic Induction

Data Source

PatentUS10134032B2Wireless beacon communications through magnetic card readers

Publication Date: 2018.11.20 PAYPAL INC

AI summary

There are provided systems and method for wireless beacon communications through magnetic card readers. A check-in at a merchant location may be completed using a beacon at the merchant location with a communication device. When a user wishes to pay for an item, the beacon may alert the user through their communication device that payment may be effectuated through the communication device. The communication device may communicate a payment token to the wireless beacon that identifies payment information for the user using a payment provider. The payment token may be encrypted, and the wireless beacon may decrypted the payment token prior to transmission to an accessory of a point of sale device, such as a magnetic card reader using magnetic field generation. This payment token may then be transmitted to a point of sale device, which may utilize a payment provider and/or a payment card issuer to effectuate payment.