Cryptocurrency Checkout Intermediary System
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Solution Overview
Problem
The challenge lies in facilitating cryptocurrency transactions between merchants who accept only specific cryptocurrencies and customers who may not hold those cryptocurrencies, requiring a change in payment or acceptance procedures to complete transactions.
Innovation Solution
A system and method where a financial institution backend manages the checkout flow by receiving login credentials, retrieving customer accounts, deducting payment from selected accounts, confirming payment, and settling transactions in either cryptocurrency or fiat currency, allowing for seamless transactions even when the merchant and customer have incompatible payment types.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the merchant accepts only specific cryptocurrencies and the customer does not hold those cryptocurrencies, then the transaction cannot be completed with the current payment procedure, but changing the payment procedure requires both merchant and customer coordination
Solution Approach 1:
The financial institution acts as an intermediary between the customer and merchant. The customer initiates a payment request, the financial institution retrieves the customer's cryptocurrency wallet, transfers the appropriate cryptocurrency to the merchant's wallet, and settles the transaction. This mediator approach allows the customer to pay with any cryptocurrency they hold while the merchant receives the specific cryptocurrency they accept, eliminating the need for both parties to coordinate their payment procedures.
2Adaptability or versatility
If the customer wishes to pay with a certain type of cryptocurrency and the merchant only accepts a different type, then the transaction cannot be completed without changing procedures, but procedure changes require mutual agreement
Solution Approach 1:
The financial institution serves as a mediator that handles cryptocurrency type mismatches. The customer selects which cryptocurrency they wish to use from their wallet, and the financial institution automatically converts or transfers it to the cryptocurrency type the merchant accepts. This eliminates the need for the customer to change their preferred payment method or the merchant to change their acceptance criteria.
Solution Approach 2:
The system automatically changes the cryptocurrency parameter during the transaction process. The financial institution retrieves the customer's wallet, identifies the cryptocurrency they hold, and transfers it converted or exchanged to the cryptocurrency type the merchant accepts. This parameter transformation happens transparently in the background without requiring manual intervention from either party.
3Ease of operation
If the financial institution manages the checkout flow and handles cryptocurrency transfers, then seamless transactions are enabled without procedure changes, but the system complexity increases
Solution Approach 1:
The checkout flow is segmented into distinct phases: customer initiates payment request, financial institution retrieves customer wallet, financial institution transfers cryptocurrency to merchant wallet, and transaction is settled. This segmentation allows each phase to be handled independently and efficiently, with the financial institution's backend managing the complex cryptocurrency transfer logic while presenting a simple interface to both customer and merchant.
Data Source
AI summary
Systems and methods for systems and methods for cryptocurrency checkout are disclosed. According to one embodiment, a method may include a financial institution backend: receiving, from a merchant backend, control of a checkout flow for a transaction comprising an identification of a good or service to purchase, wherein the merchant backend accepts payment in cryptocurrency; receiving login credentials for the customer from the computer program; retrieving a plurality of customer accounts for the customer; receiving selection of one or more of the plurality of customer accounts to fund the cryptocurrency for the transaction; deducting a payment amount for the transaction from the one or more selected customer accounts; confirming payment to the merchant backend; returning control of the checkout flow to the merchant backend, wherein the merchant backend completes the transaction with the customer; and settling the transaction by providing a settlement amount in cryptocurrency to the merchant backend.