Consumer Device Point-of-Sale Using Wireless Wallet Data Exchange

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Solution Overview

Problem

Current financial transaction systems between consumers and merchants require consumers to carry physical payment instruments, which are inconvenient and do not provide merchant access to consumer information for enhanced service, and lack efficient methods for location-based services and secure payments.

Innovation Solution

A system comprising consumer and merchant devices with communication and processing circuitry for wireless data exchange, using NFC, QR codes, RFID, or RSSI to identify consumers, associate them with locations, facilitate payments, and provide personalized services, leveraging a central system for secure data management and transaction processing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Loss of information

If consumers use physical payment instruments (cash, cards, coupons), then payment transactions can be completed, but consumers must carry wallets which are inconvenient and do not provide consumer information to merchants

Engineering Contradiction:

Improveconsumer informationVSAvoidconvenience of carrying and using payment instruments

Core Design Contradiction:

Loss of informationVSEase of operation

Solution Approach 1:

The patent replaces physical payment instruments with their digital counterparts stored on consumer devices. Payment instruments, coupons, and loyalty cards are copied into electronic form on smartphones or other portable devices, eliminating the need to carry physical wallets while maintaining payment functionality and enabling merchants to access consumer information for personalized service.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent substitutes mechanical/physical payment systems with electronic/digital systems. Instead of physically handling cash, cards, or coupons, the system uses wireless communications, NFC, QR codes, and mobile device interfaces to complete transactions, thereby eliminating the inconvenience of carrying physical items while capturing consumer data.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Reliability

If merchants use traditional point-of-sale devices, then transactions can be processed, but the system lacks efficient location-based services and secure payment methods

Engineering Contradiction:

Improvesecure payment processingVSAvoidsystem complexity for location-based services

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent transforms consumer devices into multi-functional tools that serve as wallets, tickets, loyalty cards, and payment instruments simultaneously. A single mobile device replaces multiple physical items and provides integrated functionality for payment, location tracking, and consumer information management, reducing the need for separate specialized devices.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces a centralized server or cloud-based platform as an intermediary between consumers and merchants. This intermediary handles secure authentication, transaction processing, and location-based service coordination, simplifying the system architecture while enhancing security and enabling sophisticated location-based functionalities without requiring complex local processing at merchant devices.

Inventive Principle:

Principle #24Intermediary (Mediator)

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

Enables convenient, secure, and personalized transactions by eliminating the need for physical payment instruments, allowing merchants to offer tailored services based on consumer data while ensuring secure payment processing without exposing sensitive information.

Implementation Method 1

wireless communications using near field communication (NFC)

Methodology Applied

Scientific EffectNear Field Communication (NFC): Electromagnetic Induction

Implementation Method 2

wireless communications using near field communication (NFC), Quick Response (QR) code, radio frequency identification (RFID)

Methodology Applied

Scientific EffectRadio Frequency Identification (RFID): Electromagnetic Induction

Implementation Method 3

determine location data based on a wireless communication received from the consumer device; The wireless communication may be based on one or more signals using near field communication (NFC), Quick Response (QR) code, radio frequency identification (RFID), triangulation

Methodology Applied

Scientific EffectTriangulation:

Implementation Method 4

Methodology Applied

Scientific EffectReceived Signal Strength Indication (RSSI):

Data Source

PatentUS11620640B2Consumer device based point-of-sale

Publication Date: 2023.04.04 BYTEDANCE INC

AI summary

Systems and related methods facilitating interactions between a merchant device, a central system and a consumer device are discussed herein. Wallet identifying data may be used to secure messages between the consumer device and the merchant device over a wireless link. For example, the merchant device may include circuitry configured to wirelessly receive the wallet identifying data from a consumer device and to transmit the wallet identifying data to the central system. In response, consumer identifying data associated with the wallet identifying data may be received by the merchant device from the central system. In some embodiments, the consumer identifying data may be associated with a unit of location, such as a dine-in location at a restaurant, to facilitate consumer service.