Contactless POS Payment System Using Digital Wallet Intermediaries
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Traditional point of sale (POS) payment transactions require consumers to physically present payment cards at a POS machine, leading to inefficient processing, long queues, and inconvenience, especially in busy environments where transactions cannot be processed quickly.
Innovation Solution
A method and system allowing POS payment transactions via electronic processing devices that communicate with user devices using wireless protocols, enabling transactions to be initiated without physical cards by receiving transaction requests, retrieving payment information, and authenticating user accounts through digital wallets or web interfaces, thus eliminating the need for physical card presentation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If physical card presentation is required at POS machine, then payment security is maintained, but transaction processing efficiency deteriorates due to queues and waiting time
Solution Approach 1:
The patent uses digital copies of payment card information stored in a digital wallet on the user's mobile device. Instead of requiring the physical card itself, the system captures and processes a digital representation of the card data, allowing contactless payment initiation while maintaining security through tokenization and encryption of the copied information.
Solution Approach 2:
The mobile device acts as an intermediary between the user's physical card and the POS system. The digital wallet application on the mobile device captures payment information, stores it securely, and transmits it wirelessly to the POS terminal, eliminating the need for direct physical card insertion while enabling efficient contactless transactions.
2Ease of operation
If physical card and PIN entry are required, then payment authentication is ensured, but consumer convenience deteriorates due to manual authentication steps
Solution Approach 1:
The system enables self-service payment authentication through the digital wallet application. The mobile device automatically manages payment information, and users can initiate payments with simple gestures or biometric authentication on their own devices without requiring manual PIN entry at the POS terminal or assistance from cashiers.
Solution Approach 2:
The patent replaces the mechanical PIN entry process at the POS terminal with electronic authentication methods on the user's mobile device. Instead of manually typing a PIN on a physical keyboard, users authenticate through their device's secure interface, which then transmits the authenticated payment tokens wirelessly to complete the transaction.
3Adaptability or versatility
If centralized POS locations are used, then payment processing is consolidated, but accessibility deteriorates as consumers must navigate to specific payment areas
Solution Approach 1:
The patent adds the dimension of wireless communication between mobile devices and POS terminals. Instead of requiring consumers to physically move to a centralized checkout counter, the payment capability extends to any location within wireless range of a POS terminal throughout the store, transforming the payment experience from location-constrained to location-flexible.
4Productivity
If multiple waiters process payments simultaneously at traditional POS, then service capacity is maintained, but transaction coordination complexity increases
Solution Approach 1:
The patent segments the payment processing function from the traditional centralized POS counter to individual mobile devices. Each waiter can independently process payments on their own device, and each customer can initiate payments on their own device, creating multiple independent payment channels that reduce coordination complexity while maintaining or increasing overall service capacity.
Data Source
AI summary
A method of performing a point of sale (POS) payment transaction at a merchant location, the method including, in one or more electronic processing devices: (a) receiving a transaction request including an indication of a transaction identifier from the user device; (b) retrieving an indication of payment information from a merchant system using the transaction identifier; (c) requesting user account information from the user device; (d) receiving the user account information in response to user input; and (e) initiating payment authorization with a payment processing system using the payment information and user account information to enable the payment transaction to be performed.