Dynamic Payment Credential Generation via Geo-Location
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Solution Overview
Problem
The widespread adoption of RFID technology for electronic payments is hindered by security concerns, and many point-of-sale devices are not enabled for Near Field Communication (NFC) protocols, limiting the ability of smartphones to make secure electronic payments at merchants with legacy equipment.
Innovation Solution
A system and method that utilizes geo-location data to determine the likely point-of-sale terminal and generates a one-time use temporary payment card, compatible with existing NFC and RFID standards, allowing smartphones to make secure payments at merchants with legacy equipment by emulating credentials in formats accepted by these systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If RFID technology is used for electronic payments, then payment convenience is improved, but security concerns worsen
Solution Approach 1:
The payment system is segmented into multiple components: geographic location verification, merchant identification, one-time credential generation, and transaction authorization. This segmentation allows each component to address specific security concerns independently while maintaining overall payment convenience.
Solution Approach 2:
The system performs preliminary actions by verifying geographic location and identifying the merchant before generating payment credentials. This preliminary verification ensures that credentials are only generated when appropriate security conditions are met, addressing security concerns before the actual payment transaction occurs.
2Reliability
If NFC protocols are used for smartphone payments, then security is improved, but compatibility with legacy point-of-sale equipment worsens
Solution Approach 1:
The system uses geographic location and merchant identification as intermediaries between NFC-enabled smartphones and legacy point-of-sale equipment. By first verifying the transaction context through these intermediaries, the system can then generate appropriate credentials that bridge the gap between modern NFC security requirements and legacy equipment compatibility.
Solution Approach 2:
The system dynamically changes credential parameters based on the verified geographic location and merchant identification. This allows the same smartphone to generate different payment credentials for different merchants, enabling compatibility with various legacy systems while maintaining NFC-level security through context-aware credential generation.
3Reliability
If one-time credentials are generated for each transaction, then security is improved, but system complexity worsens
Solution Approach 1:
The credential generation system is designed to be universal, handling multiple merchant types and legacy equipment variations through a single integrated process. By consolidating geographic verification, merchant identification, and credential generation into one multi-functional system, the complexity is managed centrally rather than requiring separate complex systems for each function.
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
Enables secure electronic payments on any smartphone at merchants with existing point-of-sale equipment, enhancing security and compatibility with legacy systems by using geo-location to adapt payment protocols and formats.
Implementation Method 1
RFID, which stands for radio-frequency identification, uses electromagnetic waves to exchange data between a terminal and some object for the purpose of identification. NFC is another technology that like RFID uses electromagnetic waves to exchange data.
Data Source
AI summary
A system for using a dynamic temporary credential with a portable communication device for use in a transaction with an electronic control point (e.g. point of sale, NFC access point) wherein the portable communication device has a geo-location module (e.g. GPS). The system has a centralized module that receives the portable communication device's current geo-location and transmits the dynamic temporary credential to the portable communication device and provides predictive transaction information—including the dynamic temporary credential and portable communication device's geo-location—to an authorization system operably associated with the electronic control point. The dynamic temporary credential has a predetermined time to live, which allows for the recycling of the dynamic credential, such recycling may take into account the geo-location for which the credential has been recently issued. A method for using a dynamic temporary credential with a portable communication device is also disclosed.