Concierge Payment Tokenization for Retailer Coordination
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Solution Overview
Problem
Current delivery fulfillment systems involve multiple transactions for online concierge services, leading to inefficiencies such as consumer time consumption, retailer checkout resource utilization, and dual transaction fees, which cannot be uniformly applied across different retailers due to varying payment processing systems.
Innovation Solution
An online concierge system coordinates payments by securely storing and tokenizing customer payment information, allowing direct charging by retailers through their respective payment processing systems, eliminating the need for intermediate transactions and enabling seamless payment processing across multiple retailers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If multiple transactions are used to pay for items (customer to concierge system and concierge system to retailer), then the payment can be processed through different payment processing systems, but it consumes the shopper's time and retailer's checkout resources and results in dual transaction fees
Solution Approach 1:
The patent merges multiple separate transactions into a single transaction by having the concierge system transact directly with the retailer's payment processing system. This consolidation eliminates the need for the shopper to complete a separate payment at the retailer, reducing both time consumption and transaction fees while maintaining compatibility with different payment processing systems through the concierge system's intermediary role
2Device complexity
If the concierge system transacts directly with the retailer's payment processing system, then the shopper does not pay for items with a credit card and transaction complexity is reduced, but different retailers use different payment processing systems requiring uniform application across all retailers
Solution Approach 1:
The concierge system serves as a universal intermediary that can transact with multiple different retailers through their respective payment processing systems. By implementing a standardized interface and tokenization process that works across various payment processors (Visa, Mastercard, American Express, etc.), the system achieves multi-functionality that reduces transaction complexity for individual retailers while maintaining broad compatibility across the entire retail network
3Productivity
If payment information is stored and tokenized for each retailer's payment processing system, then direct charging by retailers is enabled and intermediate transactions are eliminated, but secure storage and management of multiple tokenized payment information is required
Solution Approach 1:
The concierge system acts as an intermediary that securely stores and manages tokenized payment information for multiple retailers. Rather than requiring each retailer to independently manage payment tokens, the concierge system centralizes this function, using tokenization to secure payment data while providing a unified management interface. This intermediary role simplifies the overall system architecture while maintaining security and enabling efficient direct charging
Data Source
AI summary
An online concierge system receives an order from a customer with a list of items and allocates the order to a retailer at which the items can be picked. The retailer is associated with a payment processing system having a corresponding tokenization process. The online concierge system uses the tokenization process for the retailer to generate a payment token for the customer based on stored payment data and transmits the payment token to the payment processing system. The online concierge system determines a first payment amount from the customer to the retailer based on items picked at the retailer and a second payment amount from the retailer to the online concierge system. The payment processing system charges the customer a sum of the first payment amount and the second payment amount using the payment token. The online concierge system receives the second payment amount from the payment processing system.