Cross-Scheme Payment Platform for Multi-Currency Transactions
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Solution Overview
Problem
Existing domestic payment schemes face limitations in facilitating multi-channel, multi-currency international transactions, requiring multiple cards and expensive fees, with limited control over exchange rates and margins, and lack a unified platform for secure and seamless cross-border payments.
Innovation Solution
A system and method that connects domestic payment schemes through a central HUB with a central server, enabling secure transaction processing across various channels, including card-on-file, tokenized transactions, and online platforms, using cryptogram generation and verification for end-to-end security, without the need for dual or multi-network cards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If domestic payment schemes use mandatory tie-up with international payment schemes (dual or multi-network cards) to facilitate cross-scheme payments, then cross-border payment capability is improved, but business model cost and dependency increase
Solution Approach 1:
The system segments the international payment functionality into a separate cross-scheme payment platform that connects domestic payment schemes directly, eliminating the need for mandatory dual-network cards. Each domestic payment scheme operates independently while accessing international payment capabilities through the unified platform, reducing business model complexity and dependency on single international schemes.
Solution Approach 2:
The cross-scheme payment platform acts as an intermediary layer between domestic payment schemes and international payment networks. This mediator enables direct connections between domestic schemes and multiple international schemes without requiring consumers to hold dual-network cards, thereby simplifying the business model while maintaining cross-border payment capability.
2Adaptability or versatility
If domestic payment schemes mandate dual or multi-network cards for international payments, then cross-currency transaction capability is improved, but control over exchange rates and margins is lost
Solution Approach 1:
The system adds a new dimensional layer - the cross-scheme payment platform - that sits between domestic payment schemes and international networks. This additional dimension enables domestic schemes to access multiple international schemes simultaneously and maintain control over exchange rate selection and margin management, rather than being constrained to single-network card limitations.
3Device complexity
If domestic payment schemes use single-network cards for domestic transactions, then system simplicity is improved, but international payment capability is limited
Solution Approach 1:
The cross-scheme payment platform provides universal access to multiple international payment schemes through a single domestic payment scheme interface. Consumers can use their domestic single-network cards for both domestic and international payments, as the platform handles the complexity of cross-scheme routing, thereby maintaining system simplicity while enhancing international payment capability.
4Adaptability or versatility
If domestic payment schemes pay higher fees to international schemes for cross-border transactions, then international transaction capability is improved, but transaction cost increases
Solution Approach 1:
The system merges multiple domestic payment schemes and multiple international payment schemes into a unified cross-scheme payment platform. This consolidation enables direct routing between domestic and international schemes, eliminating intermediate fees and reducing overall transaction costs while maintaining comprehensive international transaction capability.
Data Source
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AI summary
The present invention relates to a system (100) for enabling multi-channel, multi-currency international transactions for domestic payment schemes. System (100) comprises central server (102) associated with an inter-transact HUB, domestic servers (104) associated with the domestic payment schemes, and payment modules (106). Central server (102) receives, from domestic servers (102), data pertaining to a transaction initiated by registered users (108) at payment modules (106) in one or more countries. Further, upon identification of international transaction details, the data is validated using cryptogram and encryption by payment modules (106). Central server (102) enables issuers (110) of registered user to initiate and complete transaction, in response to transaction request received from the identified domestic payment schemes. Finally, central server (102) facilitates domestic servers (104) associated with the issuer (110) of the user (108) to complete the transaction at the payment module (106) where the international transaction is initiated by the user (108).