Beacon-Based Contactless Payment Transaction System
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Solution Overview
Problem
Existing mobile payment methods using Near Field Communication (NFC) require physical proximity and lack direct communication from merchants to customers, leading to inefficiencies and potential health risks, as well as device damage and wear.
Innovation Solution
A beacon-based system where a merchant device transmits a unique transaction identifier to a customer's mobile device, allowing for payment processing without physical contact, enabling direct communication and simplifying the transaction process.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If NFC reader-based payment is used, then payment information can be obtained from customer phone, but customer must perform physical action to bring phone close to reader
Solution Approach 1:
Instead of the merchant reader actively reading from the customer phone (NFC approach), the customer phone actively receives beacon signals from the merchant device. This inversion eliminates the need for the customer to consciously perform physical actions to bring the phone close to a reader, as the beacon signal is continuously transmitted and the phone automatically receives it within range.
2Adaptability or versatility
If NFC reader-based payment is used, then customer can pay without physical card, but no means available for merchant to provide information directly to customer phone
Solution Approach 1:
The system establishes bidirectional communication where the merchant device transmits beacon signals containing transaction information to the customer phone, and the phone can send payment confirmation back. This feedback mechanism ensures the customer receives transaction details and confirmation directly on their device, eliminating information loss.
3Reliability
If NFC reader-based payment is used, then payment can be processed, but requires very close proximity (few centimeters) between phone and reader
Solution Approach 1:
The system changes the transmission parameter from NFC's very short range (few centimeters) to beacon technology's longer range (multiple meters). This parameter change in transmission distance allows the customer phone to receive the beacon signal without needing to be in very close proximity to the merchant device, while still enabling reliable payment processing.
4Reliability
If reader-based transaction is used, then payment can be processed, but increases transaction time and reduces efficiency
Solution Approach 1:
The merchant device continuously transmits beacon signals containing transaction information before the actual payment moment. The customer phone automatically receives and processes this information in advance, so when payment is initiated, the information is already available, eliminating delays associated with presenting the device to a reader at the moment of transaction.
Data Source
AI summary
In a purchase transaction between a merchant and a customer, a merchant device sends transaction information to a payment gateway and sends a beacon signal containing a transaction identifier to a customer mobile device. The customer mobile device sends the transaction identifier and payment information corresponding to a customer payment account to the payment gateway. The payment gateway applies the transaction identifier to access the transaction information received from the merchant device and sends purchase information based on the transaction information to the customer mobile device. The customer mobile device displays the purchase information to the customer, obtains an indication of customer assent to pay for the item and sends a confirmation of customer assent to the payment gateway. Upon receiving the confirmation of customer assent from the customer mobile device, the payment gateway Processes the purchase transaction based on the payment account information.