Consumer Mobile Payments Without POS Infrastructure

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Solution Overview

Problem

Merchants lacking access to traditional point-of-sale (POS) devices, such as those at impromptu locations like farmers' markets or stalls, face challenges in facilitating non-cash transactions due to the absence of electricity or network connectivity.

Innovation Solution

A consumer mobile device captures transaction data and communicates with a payment processing computing device to initiate financial transactions without a POS device, using image capture and geolocation components to identify the merchant, and transmits authorization requests through a payment network.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If merchants use traditional POS devices for non-cash transactions, then transaction processing capability is improved, but device complexity and infrastructure requirements worsen

Engineering Contradiction:

Improvetransaction processing capabilityVSAvoidPOS device infrastructure

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent extracts the transaction processing functionality from the merchant's location and relocates it to the consumer's mobile device. The consumer's smartphone performs capture, verification, and authorization functions that traditionally required merchant-side POS equipment, eliminating the need for complex infrastructure at the point of sale.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces a payment processing network as an intermediary between the consumer and merchant. This network handles the complex transaction routing, verification, and settlement operations, allowing merchants to conduct transactions without direct access to processing infrastructure while maintaining security and reliability.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If merchants operate at impromptu locations without POS devices, then ease of operation is improved, but transaction processing capability worsens

Engineering Contradiction:

Improvemerchant setup simplicityVSAvoidnon-cash transaction capability

Core Design Contradiction:

Ease of operationVSProductivity

Solution Approach 1:

The patent inverts the traditional payment flow by making the consumer's mobile device the initiating endpoint rather than the merchant's POS terminal. The consumer captures payment information and initiates the transaction workflow, with the system handling subsequent processing steps, thereby enabling transactions at locations without traditional POS equipment.

Inventive Principle:

Principle #13The other way round (Inversion)

Solution Approach 2:

The consumer's mobile device performs multiple functions traditionally requiring merchant infrastructure: capturing payment data, verifying merchant information, and initiating authorization requests. This self-service approach allows merchants to operate from simple locations while maintaining full non-cash transaction capability through the consumer's existing device.

Inventive Principle:

Principle #25Self-service

3Adaptability or versatility

If consumers use mobile devices for transactions without POS devices, then adaptability is improved, but measurement precision and verification reliability worsen

Engineering Contradiction:

Improvetransaction location flexibilityVSAvoidmerchant identification accuracy

Core Design Contradiction:

Adaptability or versatilityVSMeasurement precision

Solution Approach 1:

The patent implements feedback mechanisms where the payment processing network verifies merchant information captured by the consumer's device against authorized merchant records. The system provides feedback on verification status and can reject transactions if merchant identification is inaccurate or unauthorized, ensuring reliability despite the distributed nature of the system.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The patent leverages the multi-functional capabilities of consumer mobile devices for various transaction tasks: capturing payment information, geolocating the transaction, verifying merchant details, and initiating authorization requests. This universal approach enables accurate and reliable transactions at any location without requiring location-specific infrastructure.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS12417460B2Systems and methods to enable payments in the absence of a point of sale device

Publication Date: 2025.09.16 MASTERCARD INT INC

AI summary

A method and system for processing a transaction between a merchant and a consumer using a consumer mobile device wherein the consumer mobile device is in communication with a payment processing computing device having a memory are provided. The method includes receiving merchant data associated with the merchant, receiving a consumer alias associated with the consumer, receiving, a transaction request message from the consumer mobile device, the transaction request message including a merchant identifier, a transaction amount, a device identifier associated with the consumer mobile device, and consumer verification data, retrieving the account number based on the device identifier and the consumer verification data, retrieving the merchant data based on the merchant identifier, generating an authorization request message including the account number, the transaction amount, and the merchant data, and transmitting the authorization request message over a payment network to an issuer bank.