Cardless Mobile Invoice Payment via 3-D Secure Authentication
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Solution Overview
Problem
Conventional payment methods, such as bank debit or credit cards and Online Banking ePayments, face issues with security, high transaction commissions, and the difficulty of launching a common payment service due to the need for unique interfaces with each bank's system, making them inefficient and costly to implement.
Innovation Solution
A method for paying invoices using a mobile device that allows retailers to generate invoices stored in a payment service database, with buyers authenticating via e-commerce 3-D Secure and initiating payments through a proprietary mobile application, minimizing the need for modifications to existing bank systems and using standard interfaces.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If bank debit or credit cards are used for payment, then the payment process can be completed, but security is compromised and transaction commissions are high due to the long chain of intermediaries
Solution Approach 1:
The patent extracts and eliminates the unnecessary intermediaries from the payment chain. Instead of using traditional card payment intermediaries (POS terminal, service provider, acquirer, payment system, issuer), the invention directly connects the buyer's mobile device to the seller's system through a simplified invoice-based workflow, removing the complex intermediary chain while maintaining payment functionality
Solution Approach 2:
The patent introduces a new intermediary model where the invoice itself acts as the mediator. The invoice number serves as a unique identifier that directly links the buyer and seller without requiring traditional payment intermediaries. The 3-D Secure authentication mechanism provides security without adding complex intermediary layers
2Reliability
If Online Banking ePayments (OBeP) are implemented, then payment security can be improved, but the service launch becomes difficult and expensive due to the need for unique interfaces with each bank system
Solution Approach 1:
The patent creates a universal payment interface that works across multiple banks without requiring unique integrations. The invoice-based payment method with 3-D Secure authentication provides a standardized approach that can be implemented with any bank that supports 3-D Secure, eliminating the need for bank-specific interface development
Solution Approach 2:
Instead of requiring the payment system to integrate with each bank's interface (traditional approach), the patent inverts the approach by having the bank's existing 3-D Secure authentication system work with the invoice-based payment flow. This leverages the bank's existing infrastructure rather than requiring new integrations
3Ease of operation
If conventional card payment methods are used, then payment processing is simple, but transaction commissions are high and risk reduction costs increase
Solution Approach 1:
The patent extracts the costly intermediary layers from the payment process. By using a direct invoice-based payment method with 3-D Secure authentication, it removes the service providers, acquirers, and payment systems that impose high transaction commissions, keeping only the essential authentication function
Data Source
AI summary
A method for paying invoices using a mobile device. A retail enterprise (i.e., a seller) generates an invoice for goods or services that a client (i.e., a buyer) has selected. The invoice is stored in a database of a common payment service (CPS) and the invoice number is sent to buyer's mobile phone. The buyer uses his mobile phone to access his bank account via e-commerce 3-D Secure mechanism supported by the bank. The buyer is authenticated based on a procedure used by a particular bank. If the authentication is successful, the CPS initiates a payment for the seller's invoice. The payment information is sent to the buyer's mobile phone and also is sent to the seller for confirmation of closing the transaction.