Cloud Credential Verification for Mobile POS Transactions

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Solution Overview

Problem

Consumers face inconvenience when they lack physical payment card credentials or fail to carry electronic payment softcards, leading to difficulties in conducting transactions at point of sale locations.

Innovation Solution

A system and method that enables transactions using cloud-based credentials, where a mobile device initiates an electronic transaction by applying a user identifier and shared secret data to a cryptographic function, generating legacy transaction formatted data, which is then wirelessly sent to a POS reader device and forwarded to an issuer server for verification and authorization, allowing transactions without the need for physical payment card credentials.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If consumers use physical payment cards or electronic softcards stored on mobile devices, then payment credentials can be presented at point of sale, but consumers cannot conduct transactions when they fail to carry physical wallet or neglect to download electronic payment softcard

Engineering Contradiction:

Improvetransaction capabilityVSAvoidconsumer convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent introduces a cloud-based credential verification system as an intermediary between the consumer and the point of sale terminal. Instead of directly presenting physical or electronic card credentials, the consumer's mobile device communicates with a cloud server that verifies credentials and generates authorization tokens. This mediator enables transactions even when traditional card credentials are not physically carried by the consumer.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the mechanical system of physically presenting card credentials (swiping magnetic stripes, inserting chips) with an electronic/cloud-based verification system. The credential verification and transaction authorization occur through wireless communication and cryptographic protocols between the mobile device, cloud server, and point of sale terminal, eliminating the need for physical card presence.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Ease of operation

If consumers always carry physical wallet with payment cards, then transactions can be conducted at any point of sale, but this creates burden and inconvenience for consumers

Engineering Contradiction:

Improveconsumer convenienceVSAvoidtransaction capability

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The cloud-based credential verification system acts as an intermediary that enables transaction capability without requiring consumers to carry physical wallets. The system mediates between the consumer's mobile device and the point of sale terminal, providing authorization tokens that replace the need for physical card credentials while maintaining reliable transaction processing.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Ease of operation

If a cloud-based credential system is implemented, then consumers can transact without physical cards, but the system complexity increases with cryptographic functions and server communication

Engineering Contradiction:

Improveconsumer convenienceVSAvoidsystem complexity

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent extracts the complex cryptographic verification and credential validation logic from the consumer's mobile device and places it on the cloud server. The mobile device only needs to communicate transaction requests and receive authorization tokens, while the computationally intensive cryptographic operations are performed remotely by the server, reducing the complexity burden on the consumer's device.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The cloud server serves as an intermediary that handles the complex cryptographic verification processes. By positioning the server as the mediator between the mobile device and point of sale terminal, the system offloads computational complexity from consumer devices while maintaining secure credential verification and transaction authorization.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS10528944B2Systems, methods, and computer readable media for conducting a transaction using cloud based credentials

Publication Date: 2020.01.07 MASTERCARD INT INC

AI summary

A method for conducting an electronic transaction that includes initiating an electronic transaction between a mobile device and a POS reader device and applying at least a user identifier that is associated with a user of the mobile device and shared secret data as inputs to a cryptographic function in the mobile device. The method further includes inserting the output of the cryptographic function into legacy transaction formatted data, wirelessly providing the legacy transaction formatted data to the POS reader device via the electronic transaction, forwarding the legacy transaction formatted data to the issuer server, and processing, at the issuer server, the legacy transaction formatted data to verify the user identifier and request authorization for the electronic transaction. The method also includes sending a notification message to the POS reader device that indicates that the electronic transaction is authorized and conducting the electronic transaction upon receipt of the notification message.