Cardless Payment System Using Location-Based Merchant Ranking

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Solution Overview

Problem

Conventional payment systems require physical card swiping for transactions, which is inconvenient and risks unauthorized transactions, and do not effectively rank merchants based on user preferences and proximity.

Innovation Solution

A cardless payment system that allows users to authorize transactions without swiping a card by providing consent through a mobile device, ranking merchants based on proximity, previous purchases, dwell time, and other indicators, and enabling transactions within a predetermined distance from the merchant.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If physical card swiping is used for transactions, then transaction authorization is secure, but convenience is reduced and unauthorized transaction risks remain

Engineering Contradiction:

Improvetransaction convenienceVSAvoidtransaction security

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent extracts the cardless payment capability from the traditional physical card system. The mobile device obtains location data and communicates with merchants directly, eliminating the need for physical card swiping while maintaining transaction security through location-based verification and merchant authorization.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces location data and mobile device communication as intermediaries between the customer and merchant. Instead of direct card-to-reader contact, the system uses location-based verification and electronic communication to authorize transactions, improving convenience while maintaining security through multiple verification layers.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If cardless payment transactions are enabled, then transaction convenience is improved, but risk of unauthorized transactions increases

Engineering Contradiction:

Improvetransaction convenienceVSAvoidunauthorized transaction risk

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The patent implements preliminary authorization where merchants must be pre-approved by customers for cardless transactions. The system checks whether the merchant is authorized to perform cardless payments with the customer before enabling the transaction, preventing unauthorized transactions while maintaining convenience.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent uses feedback mechanisms where the mobile device continuously monitors location data and communicates with the cardless payment system to verify merchant authorization in real-time. The system provides feedback about whether a merchant is authorized, allowing the transaction to proceed only when verification is successful.

Inventive Principle:

Principle #23Feedback

3Ease of operation

If merchants are ranked solely by distance, then search simplicity is maintained, but user preference accuracy decreases

Engineering Contradiction:

Improvesearch simplicityVSAvoidmerchant recommendation accuracy

Core Design Contradiction:

Ease of operationVSMeasurement precision

Solution Approach 1:

The patent changes the ranking parameters from solely distance-based to a multi-factor system that includes purchase history, dwell time, and other user preferences. The cardless payment system analyzes multiple parameters to rank merchants, providing more accurate recommendations while maintaining simple presentation for the user.

Inventive Principle:

Principle #35Parameter changes

4Reliability

If multiple transaction authorization methods are required (signature, PIN, electronic approval), then transaction security is improved, but transaction time increases

Engineering Contradiction:

Improvetransaction securityVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent implements preliminary location verification and merchant authorization checks before the transaction occurs. By verifying the customer's location and the merchant's authorization status in advance, the system reduces the need for multiple post-transaction verification steps, decreasing processing time while maintaining security.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent replaces mechanical verification methods (physical signatures, PIN entry) with electronic location-based verification and automated authorization checks. The mobile device uses GPS and communication protocols to verify transaction legitimacy, reducing the time required for authorization while maintaining or improving security through automated systems.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS10783531B2Cardless payment transactions based on geographic locations of user devices

Publication Date: 2020.09.22 BLOCK INC

AI summary

Techniques directed to performing a cardless payment transaction based on a geographical location of a mobile device are described. The techniques may include displaying a user interface with a list of merchants that are proximate to the mobile device. User input may be received to enable automatic check-in with a merchant. The techniques may further include determining that the mobile device is within a particular distance to the merchant and sending an indication to carry out a cardless payment transaction with the merchant.