Contactless Mobile Payment System Using Server-Side Credential Storage

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Existing mobile payment systems face challenges due to high costs, consumer adoption issues, and security concerns related to storing sensitive information on mobile devices and transmitting it to POS terminals, as well as the need for specific hardware to store payment credentials.

Innovation Solution

A mobile payment system where sensitive information is stored on a transaction server, with unique IDs used for authentication, eliminating the need for storing payment information on mobile devices or POS terminals, and enabling contactless transactions through wireless interfaces like NFC or RFID, with a remote rules engine for authorization and fraud prevention.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If sensitive payment information is stored on mobile devices and transmitted to POS terminals, then contactless payment functionality is enabled, but security risks increase and consumer adoption is hindered

Engineering Contradiction:

Improvepayment securityVSAvoidconsumer adoption

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent extracts sensitive payment information from mobile devices and stores it exclusively on the transaction server. Only non-sensitive unique identifiers are stored on mobile devices and transmitted to POS terminals, eliminating the security risk of transmitting sensitive data while maintaining contactless payment functionality.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The transaction server acts as an intermediary that holds sensitive payment information. The server receives transaction requests from POS terminals, retrieves payment details, processes authorization, and returns results, thereby eliminating the need for mobile devices or POS terminals to store or transmit sensitive data.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If specific hardware with secure elements is required to store payment credentials, then payment security is enhanced, but device complexity and cost increase

Engineering Contradiction:

Improvepayment securityVSAvoidhardware requirements

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent removes the requirement for secure elements and dedicated payment hardware from mobile devices. By extracting the payment credential storage function to the transaction server, the system enables any standard mobile device with wireless communication capability to perform contactless payments.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The transaction server provides universal payment processing capability that can be accessed by any mobile device through standard wireless communication protocols. This eliminates the need for device-specific payment hardware and enables widespread adoption using existing mobile phones.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Adaptability or versatility

If the existing credit card architecture is used with mobile devices, then compatibility is maintained, but transaction costs remain high and innovation is limited

Engineering Contradiction:

Improvesystem compatibilityVSAvoidtransaction cost

Core Design Contradiction:

Adaptability or versatilityVSLoss of energy

Solution Approach 1:

The patent fundamentally changes the architecture parameters by moving from a distributed model where credentials are stored on devices to a centralized model where credentials are stored on the server. This architectural parameter change enables new functionality while maintaining compatibility with existing payment networks and processors.

Inventive Principle:

Principle #35Parameter changes

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

This solution reduces transaction costs, enhances security, and simplifies consumer adoption by eliminating the need for specific hardware, providing secure, contactless, and fraud-resistant mobile payments that can be controlled by users through their mobile devices.

Implementation Method 1

which support a wireless interface, such as near field communication (NFC) or radio frequency identification (RFID), to conduct contactless payments

Methodology Applied

Scientific EffectNear Field Communication (NFC):

Implementation Method 2

such as near field communication (NFC) or radio frequency identification (RFID), to conduct contactless payments

Methodology Applied

Scientific EffectRadio Frequency Identification (RFID):

Data Source

PatentUS10872329B2Contactless mobile payment system

Publication Date: 2020.12.22 MOBILE ELEMENTS CORP

AI summary

This disclosure relates to methods and systems for mobile payments, where financial transactions can be conducted between customers and merchants via their mobile devices when their mobile devices are brought in close proximity to each other. The customer enters their payment authorization code on their own mobile device, in order to authorize payment transactions. The disclosed system design and functionality allows for intuitive, real time, inexpensive and secure payment and cash-exchange transactions.