Card-Free Payment Program Using Telephone Number Identification
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Solution Overview
Problem
Existing retail payment and loyalty systems require consumers to carry physical devices or undergo biometric scans, which is inconvenient and disliked by many, necessitating the development of methods for improving transaction speed and enhancing loyalty programs without these requirements.
Innovation Solution
A card-free program enrollment method that allows customers to enroll in payment and loyalty programs using a unique identification code, enabling card-free transactions by associating identification information with payment options like ACH debit, and linking loyalty benefits to specific payment types, without the need for physical devices or biometric scans.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If physical devices like loyalty cards, RFID tags, or mobile telephones are used for payment and loyalty programs, then transaction speed and program participation are improved, but consumer convenience deteriorates due to the requirement to carry physical devices or undergo biometric scans
Solution Approach 1:
The patent extracts the identification function from physical devices and biometric systems, using only a unique identification code (such as a telephone number) that the consumer already possesses. This removes the need to carry physical cards or undergo scans, resolving the contradiction by eliminating the burden of physical devices while maintaining fast transaction processing through code-based identification.
Solution Approach 2:
The patent uses a digital copy of the consumer's unique identification code (telephone number) stored in the system's database instead of physical identification media. This virtual copy enables fast electronic verification at the point of sale without requiring the consumer to present or scan physical cards, thereby improving transaction speed while maintaining convenience.
2Ease of operation
If card-free payment systems are implemented, then consumer convenience is improved by eliminating the need to carry physical devices, but system complexity increases due to the need for robust identification and authorization mechanisms
Solution Approach 1:
The patent leverages the telephone number, which consumers already use for communication and which uniquely identifies them, as the basis for payment and loyalty program identification. This universal identifier already exists in the consumer's possession and in the merchant's database, eliminating the need for separate physical cards or complex biometric systems while maintaining security and convenience.
Solution Approach 2:
The system uses the consumer's own telephone number as the identification code, which they already have and can provide without assistance. This self-service approach eliminates the need for physical cards that must be carried and presented, simplifying the consumer's experience while the backend system handles the complexity of verification and authorization automatically.
3Ease of manufacture
If unique identification codes like telephone numbers are used for enrollment, then ease of enrollment is improved, but security considerations arise regarding unauthorized access and fraud prevention
Solution Approach 1:
The patent performs preliminary verification by checking the provided telephone number against the consumer's existing loyalty program account or enrolling them in a new account before processing the transaction. This advance verification ensures that only authorized users can access payment and loyalty benefits, maintaining security while keeping the enrollment process simple and fast.
Solution Approach 2:
The system provides feedback by verifying the telephone number against the database and confirming whether the consumer is an existing member or needs enrollment. This feedback mechanism ensures security by validating the identification code before allowing transaction processing, while maintaining ease of use by providing clear guidance to the consumer during the verification process.
Data Source
AI summary
In some embodiments, the present application relates to card-free programs provided by a merchant to a customer, whereby the customer has access to functions such as payment options and/or loyalty program benefits without needing to present a physical card at a point of sale. For example, a customer may make a card-free purchase of goods or services from a merchant, whereby the customer need not present a card such as a debit card, credit card, loyalty card, or other physical tender to make a purchase. Further, the customer need not provide biometric data or otherwise use an electronic device or identifier to make a purchase. Alternatively or additionally, the customer may access a loyalty program without needing to provide a physical card or data associated with a card.