Custom Made Device Passive Repeater for Secure Payments
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Solution Overview
Problem
Traditional payment systems face challenges such as limited access to cash deposits and withdrawals for unbanked individuals, high costs for merchants due to middlemen, lack of internet access requirements, increased fraud potential in contactless payments, and unreliable communication methods prone to hacking, which hinder financial inclusion and user convenience.
Innovation Solution
A payment system utilizing wireless devices with a Custom Made Device as a passive repeater for ultra-low range communication, enabling secure and reliable transactions between smartphones or tablets without the need for internet access, allowing cash deposits and withdrawals, reducing intermediaries, and enhancing security through unique transaction codes and two-factor authentication.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Use of energy by moving object
If wireless devices communicate directly through ultra-low range transceiver, then power consumption is reduced, but communication reliability deteriorates when distance exceeds acceptable range
Solution Approach 1:
The patent introduces a Custom Made Device (CMD) as an intermediary between the Mobile-Paying-Device and Mobile-Receiving-Device. The CMD receives ultra-low power signals from one device and retransmits them to the other device, enabling communication over distances exceeding the direct transmission range while maintaining low power consumption. This mediator approach resolves the contradiction by extending communication reliability without increasing energy usage.
2Ease of operation
If contactless payment methods are used, then user convenience is improved, but fraud potential increases
Solution Approach 1:
The CMD acts as a secure intermediary that physically connects the paying device and receiving device during transactions. This physical proximity requirement through the CMD creates a secure channel that prevents remote fraud attempts while maintaining the contactless convenience. The intermediary ensures that only devices in close proximity can complete transactions, thereby reducing fraud potential.
Solution Approach 2:
The system implements feedback mechanisms through unique transaction identifiers and timestamps that are verified by the server. The system monitors transaction patterns and provides feedback to detect anomalies, enabling real-time fraud detection while maintaining smooth user experience. This feedback loop allows the system to adapt to suspicious behavior without disrupting legitimate transactions.
3Reliability
If direct device contact is required for payment, then security is improved, but user convenience deteriorates
Solution Approach 1:
The CMD serves as a mediator that enables secure transactions without requiring direct contact between the paying and receiving devices. Users simply bring their devices near the CMD, and the intermediary handles the secure communication and authentication processes automatically. This eliminates the need for manual contact while maintaining security through the intermediary's verified connection.
4Device complexity
If internet access is required for transactions, then system control is improved, but accessibility deteriorates for unbanked populations
Solution Approach 1:
The CMD acts as a local intermediary that enables transactions without requiring continuous internet connectivity. The device can store transaction data and authenticate locally, then synchronize with the server when connectivity is available. This intermediary approach maintains system control through server verification while dramatically improving accessibility for unbanked populations who may not have reliable internet access.
Data Source
AI summary
A system and method of operating a payments system using a Custom Made Device (CMD) not requiring any power supply, or such CMD in combination with an adapted smartphone (AS) jointly, can form a novel point of sale (POS). This invention improves on the prior art shortcomings allowing merchants and users alike more choice of using this invention for different payment systems that makes use of a novel Custom Made Device (CMD) or a novel Point Of Sale (as a combination of using a CMD and an adapted smartphone) increasing competition in the marketplace in a more reliable way than without using the CMD. Additionally the invention increases the reliability of users transacting directly between them through their smartphones or such other devices by instead of interacting directly between the user device to interact through the Custom Made Device of this invention acting as a passive repeater between both devices.