Wireless Beacon Payment Code Generation for Secure Transactions
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Solution Overview
Problem
Consumers face challenges with payment security and convenience when making purchases, as they often need to carry cash or payment cards, which can lead to fraud or require returning to a merchant for additional purchases, and may need to establish credit lines, which can be suboptimal.
Innovation Solution
A system using short-range wireless communication, such as Bluetooth Low Energy, where a wireless beacon at a merchant location generates a payment code on a consumer's device, allowing for secure and convenient transactions by linking to a payment provider's server, enabling pre-authorized spending limits and eliminating the need for physical payment instruments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If consumers carry cash or payment cards to merchants, then they can make purchases, but they are exposed to fraud or theft
Solution Approach 1:
The patent replaces physical payment instruments (cash, cards) with a digital payment code displayed on a communication device. This copy of payment information in digital form eliminates the need to carry physical instruments that can be stolen or lost, while maintaining the ability to make purchases through wireless transmission of the payment code to the merchant.
2Adaptability or versatility
If consumers bring adequate cash to cover all potential purchases, then they can make any purchase, but they must carry excessive amounts of cash
Solution Approach 1:
The payment code dynamically adjusts the available spending amount based on the consumer's account balance and authorization limits. Instead of carrying a fixed large amount of cash to cover all possible purchases, the system allows flexible spending up to authorized limits that can be adjusted in real-time, enabling consumers to carry minimal physical funds while maintaining high purchase flexibility.
3Adaptability or versatility
If consumers need to return to the merchant for additional purchases, then they can buy more items, but they waste time and disrupt the shopping experience
Solution Approach 1:
The system pre-authorizes spending limits and loads payment codes with available funds before the consumer leaves the merchant location. This preliminary action enables consumers to make additional purchases at different locations or times without needing to return to the original merchant, as the payment code is already authorized and can be used anywhere in the network.
4Adaptability or versatility
If consumers open a line of credit with the merchant, then they can purchase beyond their cash limit, but it complicates the payment process
Solution Approach 1:
The payment code system provides a universal payment solution that combines multiple functions: it acts as cash for exact payments, provides credit lines through pre-authorization, and works across multiple merchants and locations. This single multi-functional system eliminates the need for separate cash management, credit line setup, and account reconciliation processes that would otherwise be required.
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 enhances payment security by reducing fraud risks and improves convenience by allowing consumers to make purchases without carrying cash or cards, with pre-authorized spending limits and automatic transaction processing, streamlining the checkout process.
Implementation Method 1
These beacons may be set up at a merchant store and communicate with the communication device
Data Source
AI summary
There are provided systems and method for payment code generation using a wireless beacon at a merchant location. A check-in at a merchant location may be completed using a wireless beacon at the merchant location with a communication device. After check-in a user using the communication device may request a payment code be generated from a payment provider that enables the user to have the payment code scanned by a merchant scanner at a point of sale device and complete payment for items with the merchant. The request to generate the payment code may be transmitted from the communication device to the wireless beacon, where the wireless beacon transmits the code over a network connection with the payment provider. Once the code is generated, the wireless beacon may receive the code and transmit the code back to the communication device.