Dynamic Payment Device Assignment via Cloud Location Verification
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Solution Overview
Problem
Current payment solutions require single points of sale, leading to bottlenecks and increased risk of contagion, such as during COVID-19 outbreaks, and result in higher merchant processing fees.
Innovation Solution
A system that dynamically connects customer-owned mobile devices with cloud-based services to multiple payment devices within an entity, using unique identifiers and location-based verification to facilitate contactless transactions, reducing the need for physical interaction and lowering processing costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If a single point of sale is used, then transaction processing is simplified, but customer traffic bottlenecks and contagion risk increase
Solution Approach 1:
The patent divides the single point of sale into multiple distributed payment devices located throughout the business premises. Each payment device operates independently, allowing multiple customers to complete transactions simultaneously at different locations, thereby eliminating bottlenecks and reducing customer traffic concentration.
Solution Approach 2:
The system transitions from a single-location payment model to a multi-location distributed model by adding spatial dimensionality. Payment devices are placed across different areas of the business, transforming the payment process from a centralized bottleneck into a distributed network that handles multiple transactions concurrently across space.
2Device complexity
If a single point of sale is used, then payment processing is centralized, but merchant processing fees increase
Solution Approach 1:
The centralized payment processing is segmented into multiple distributed payment devices. Each device processes transactions locally, reducing the need for centralized handling and associated fees. The segmentation allows the business to leverage multiple payment processing channels simultaneously.
Solution Approach 2:
Customers use their own mobile devices to complete payments at distributed payment devices throughout the business. This self-service model eliminates the need for cashiers to facilitate each transaction, reducing labor costs and enabling more efficient payment processing across multiple locations.
3Productivity
If multiple payment devices are deployed, then customer throughput increases, but system complexity increases
Solution Approach 1:
The cloud-based payment service provides universal functionality across all distributed payment devices. Each device performs the same core payment processing functions, and the cloud service manages routing, device selection, and transaction coordination, simplifying the overall system architecture despite the increased number of devices.
Solution Approach 2:
The cloud-based payment service acts as an intermediary between customers and the distributed payment devices. It receives payment requests from mobile devices, determines the optimal payment device based on location and availability, and coordinates the transaction, thereby managing system complexity centrally while enabling distributed processing.
4Object-affected harmful factors
If contactless payments are enabled, then contagion risk decreases, but verification security requirements increase
Solution Approach 1:
The system replaces physical interaction (mechanical contact) with wireless communication for payment processing. Mobile devices communicate with payment devices through wireless protocols, eliminating the need for physical contact and associated hygiene risks while maintaining secure transaction verification through digital authentication methods.
Solution Approach 2:
The cloud-based payment service implements verification feedback mechanisms to confirm customer identity and authorization before processing contactless payments. The system verifies transactions through multiple channels including location validation, device identification, and authentication protocols, ensuring security without requiring physical contact.
Data Source
AI summary
The present disclosure involves solutions for dynamically connecting a customer-owned mobile device, a cloud-based service, and one or more particular physical payment devices located at an entity. In one example, as executed at a cloud-based payment service, a unique identifier associated with a location of a mobile device of a customer is received. An entity and a first location within the entity is determined based on the unique identifier, and a particular payment device at the entity is determined. The cloud service transmits, to the particular payment device, information to be used by the particular payment device to perform the payment transaction. A second signal is transmitted to the mobile device of the customer, and includes an indication of the particular payment device at which the payment transaction is to be completed. The payment transaction can then be completed at the particular payment device.