Contactless Card Offline Payment via Mobile Intermediary

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Solution Overview

Problem

Existing payment systems often require internet connectivity to process transactions, leading to incomplete transactions when merchants are offline, forcing customers to pay in cash if they lack access.

Innovation Solution

A contactless card system that allows offline transactions by tapping the card to a POS device, which transfers data to a mobile device via NFC or Bluetooth, and then to a cellular network for authorization, enabling payment processing even without internet connectivity at the POS.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a merchant terminal uses contactless card payment processing, then payment security and convenience are improved, but the system fails when Internet connectivity is unavailable

Engineering Contradiction:

Improvepayment processing reliabilityVSAvoidoffline operation capability

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The system performs preliminary actions by storing transaction data locally on the mobile device before Internet connectivity is needed. The mobile device captures transaction details from the POS terminal via NFC, stores them locally, and queues them for later synchronization when connectivity is restored, enabling the system to function during offline periods.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The mobile device acts as an intermediary between the POS terminal and the payment server. It receives transaction data from the POS terminal via NFC, processes and validates the data locally, and then transmits it to the payment server when connectivity is available, bridging the gap between offline card reading and online payment processing.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Ease of operation

If the system requires Internet connectivity for payment processing, then centralized payment security is maintained, but transactions cannot be completed when the POS terminal is offline

Engineering Contradiction:

Improvetransaction completion rateVSAvoidpayment system dependency

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The payment processing function is segmented into three independent components: (1) the POS terminal that reads the contactless card via NFC, (2) the mobile device that stores and manages transaction data locally, and (3) the payment server that processes payments when connected. This segmentation allows each component to operate semi-independently, enabling transaction completion even when the POS terminal is offline.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The system dynamically adapts its operation mode based on Internet connectivity availability. When connected, it performs real-time payment processing; when disconnected, it switches to offline mode where transaction data is stored locally and processed asynchronously once connectivity is restored, making the system flexible and adaptable to changing network conditions.

Inventive Principle:

Principle #15Dynamics

3Adaptability or versatility

If cash payments are used as an alternative to card payments when offline, then payment processing can continue, but security and convenience are reduced

Engineering Contradiction:

Improvepayment method flexibilityVSAvoidpayment security

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The system creates a digital copy of the card payment process that can operate offline. Instead of requiring physical cash handling, the mobile device captures and stores a digital representation of the transaction data from the contactless card, maintaining the security and convenience of electronic payment while enabling offline operation through local data storage and asynchronous processing.

Inventive Principle:

Principle #26Copying

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

Facilitates secure and complete offline transactions by allowing payment authorization through a mobile device's network connection, reducing the need for cash payments and enhancing security with location validation and transaction limits.

Implementation Method 1

tapping the card to a POS device, which transfers data to a mobile device via NFC or Bluetooth

Methodology Applied

Scientific EffectNFC (Near Field Communication): Electromagnetic Induction

Data Source

PatentUS11507939B2Contactless card tap pay for offline transactions

Publication Date: 2022.11.22 CAPITAL ONE SERVICES LLC

AI summary

Using contactless cards to pay for offline transactions. An application executing on a mobile device may receive, via a communications interface of a contactless card, an account identifier of the contactless card, and transaction data received by the contactless card from a POS device via the communications interface, the transaction data comprising at least an identifier of a merchant account, a timestamp, and an amount of the transaction, a network connection between the POS device and a payment server not available. The application may transmit the account identifier and the transaction data to the payment server via a cellular network connection of the mobile device. The mobile device may receive, from the payment server via the cellular network connection, authorization of a payment for the transaction. The application may generate a graphical indication of the authorization of the payment for the transaction and output the graphical indication of the authorization.