Biller Exchange Tokenization for Real-Time Multi-Bank Payments

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Conventional bill payment infrastructures lack efficient coordination and integration among different financial institutions, leading to uncoordinated and offline processes, increased costs, and security risks due to the involvement of multiple third-party processors.

Innovation Solution

Implementing a biller exchange computing system with a distributed API architecture that enables secure, real-time transactions and tokenized data exchange among financial institutions and billers, facilitating streamlined payment processing and reduced fraud through centralized management and standardized APIs.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If multiple third-party processors are used for payment processing, then more financial institutions can be supported, but system complexity and costs increase

Engineering Contradiction:

Improvesupport for multiple financial institutionsVSAvoidsystem complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent consolidates multiple third-party processor functions into a single biller exchange computing system that directly connects financial institutions. This merging eliminates the need for multiple intermediaries while maintaining support for diverse financial institutions through standardized APIs and protocols.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The biller exchange computing system is designed as a universal platform that can handle payments across multiple financial institutions through standardized interfaces. It provides multi-functional capabilities including payment processing, clearing, settlement, and fraud prevention in a single system architecture.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Adaptability or versatility

If multiple third-party processors are involved in payment processing, then more financial institutions can be connected, but processing coordination becomes less efficient

Engineering Contradiction:

Improveconnection among financial institutionsVSAvoidprocessing coordination efficiency

Core Design Contradiction:

Adaptability or versatilityVSProductivity

Solution Approach 1:

The patent merges coordination functions for multiple financial institutions into a centralized biller exchange computing system. This single system coordinates all payment processing activities including clearing and settlement, eliminating the inefficiencies of distributed coordination among multiple third-party processors.

Inventive Principle:

Principle #5Merging (Combining)

3Device complexity

If conventional offline processing is used, then system simplicity is maintained, but transaction efficiency and real-time processing are reduced

Engineering Contradiction:

Improvesystem simplicityVSAvoidtransaction efficiency

Core Design Contradiction:

Device complexityVSProductivity

Solution Approach 1:

The patent replaces offline mechanical processing systems with an automated electronic biller exchange computing system. This substitution enables real-time payment processing, clearing, and settlement through electronic communications and automated algorithms, dramatically improving transaction efficiency while maintaining system simplicity through standardized protocols.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

4Device complexity

If conventional processing methods are used, then implementation simplicity is maintained, but security risks increase due to multiple intermediaries

Engineering Contradiction:

Improveimplementation simplicityVSAvoidsecurity

Core Design Contradiction:

Device complexityVSReliability

Solution Approach 1:

The patent consolidates security functions into a single biller exchange computing system that directly connects financial institutions, eliminating multiple intermediary processing points where security vulnerabilities could exist. This merging reduces the attack surface while maintaining implementation simplicity through standardized security protocols.

Inventive Principle:

Principle #5Merging (Combining)

Data Source

PatentUS12536530B2Biller consortium enrollment and transaction management engine

Publication Date: 2026.01.27 WELLS FARGO BANK NA

AI summary

A method for coordinating billing requests and payments across different financial institutions includes receiving an electronic enrollment request by a biller exchange computing system from a customer computing device; displaying an interactive control on a user interface of the customer computing device configured to collect customer authentication data for the biller; transmitting the customer authentication data to a remote computing system associated with the biller; causing the remote computing system to generate a customer-biller account authentication token that authorizes the biller exchange computing system to perform financial transactions with the biller on behalf of the customer; and authenticating, by the biller exchange computing system, a transaction request received from the customer computing device for a transaction between the customer and the biller based on the customer-biller account authentication token.