Context-Aware Payment System for Stored Value Utilization
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Solution Overview
Problem
Current payment systems lack incentives to encourage consumers to conduct transactions with merchants based on their transaction history and location, failing to effectively utilize stored values such as gift cards or prepaid balances.
Innovation Solution
A computer-implemented method that determines a consumer's intent to transact with a merchant by analyzing their transaction history, location, and context, providing reminders or rewards for stored values associated with the merchant, and processing these transactions through a computer system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If traditional payment systems are used without contextual analysis, then transaction processing is simple and fast, but consumer engagement and stored value utilization are low
Solution Approach 1:
The system performs preliminary analysis of consumer transaction history, location data, and context before the actual transaction occurs. This advance preparation enables the system to identify applicable stored values and provide targeted reminders, increasing transaction likelihood without adding complexity to the actual payment processing step
Solution Approach 2:
The patent introduces an intermediary layer between the consumer and merchant that analyzes contextual data and manages stored value reminders. This intermediary component handles the complex analysis work, allowing the core payment system to remain simple while still providing sophisticated consumer engagement features
2Adaptability or versatility
If contextual analysis and personalized incentives are implemented, then consumer engagement and stored value utilization increase, but system complexity and processing time increase
Solution Approach 1:
The system applies personalized incentives and reminders selectively based on specific consumer contexts, locations, and transaction histories rather than uniformly to all consumers. This localized approach enables personalization where it matters most while avoiding unnecessary complexity for transactions where contextual analysis would not add value
Solution Approach 2:
The system dynamically adjusts reminder timing, incentive amounts, and communication channels based on changing consumer parameters such as location, time of day, and transaction history. This parameter-driven approach enables adaptability without requiring a completely complex system redesign, as the same core infrastructure can handle different parameter combinations
3Productivity
If reminders are provided based on inferred intent, then transaction likelihood increases, but risk of unwanted interruptions to consumers increases
Solution Approach 1:
The system monitors consumer responses to reminders and uses this feedback to adjust future reminder behavior. If a consumer ignores or dismisses a reminder, the system learns to reduce similar reminders for that consumer, preventing unwanted interruptions while maintaining high transaction likelihood for engaged consumers
Solution Approach 2:
The reminder system dynamically adjusts its behavior based on real-time consumer context and historical response patterns. Reminders are timed and targeted to maximize likelihood of engagement while minimizing interruptions, with the system adapting its approach as consumer behavior patterns emerge and change over time
Data Source
AI summary
A computer-implemented method for facilitating a transaction between a payer and a merchant comprises identifying one or more merchants that are at or in proximity to a geolocation of the payer, and providing the payer a reward, notification or a reminder of a stored value associated with a merchant to apply to a transaction with the merchant. The reward, notification or reminder of the stored value can be provided based on an inference of intent of the payer to conduct a transaction with the merchant. A request to conduct a transaction with the merchant is received from the payer. The transaction between the payer and the merchant is processed with the reward or stored value applied thereto. A notification can be sent to the payer alerting the payer to a discounted item or proximity of the payer to an item and/or merchant they have saved to a list.