Electronic Coupon System for Mobile Discount Redemption
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Solution Overview
Problem
Current methods for distributing and redeeming discounts, such as loyalty programs and printed coupons, are cumbersome for consumers and merchants, requiring significant investment and time, with risks of lost coupons and lengthy checkout processes.
Innovation Solution
An electronic coupon system that enrolls consumers in a program, allowing merchants to offer discounts via a coupon aggregator, which transfers campaign details to a financial institution, enabling consumers to receive and redeem electronic coupons on their mobile devices, with the financial institution processing the discounts during settlement, eliminating the need for merchants to change their point-of-sale systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If merchants use printed coupons with machine-readable codes, then consumers can receive discounts, but merchants must purchase and maintain hardware and software to read codes and record redemptions
Solution Approach 1:
The patent replaces the mechanical system of printed coupons with machine-readable codes and dedicated reading hardware with an electronic system where coupons are delivered via electronic messages to mobile devices. The merchant's point-of-sale system automatically detects the electronic coupon and applies the discount without requiring specialized coupon-reading hardware or software, thus eliminating the need for merchants to purchase and maintain dedicated coupon management systems.
2Reliability
If merchants implement loyalty programs with account numbers, then consumers can receive discounts, but the checkout process is slowed and merchants need substantial hardware and software investment
Solution Approach 1:
The patent merges the coupon delivery system with the existing electronic payment processing system. The mobile device stores both payment information and electronic coupons, and the point-of-sale system handles both payment authorization and coupon verification through the same transaction flow. This integration eliminates the need for separate coupon presentation and verification steps, maintaining checkout speed while ensuring reliable discount delivery.
3Ease of operation
If consumers carry printed coupons, then they can redeem discounts, but they risk losing or misplacing coupons
Solution Approach 1:
The patent creates an electronic copy of the coupon that is stored on the consumer's mobile device and transmitted electronically. Instead of relying on a physical printed coupon that can be lost or damaged, the system uses an electronic message containing the coupon data that can be instantly accessed and redeemed. The electronic nature of the coupon eliminates physical degradation and loss risks while maintaining ease of access through the mobile device.
4Reliability
If merchants use printed coupons, then consumers can receive discounts, but the checkout process is lengthened by manual verification
Solution Approach 1:
The patent replaces the manual mechanical process of presenting, scanning, and verifying printed coupons with an automated electronic system. The mobile device electronically presents the coupon data, and the point-of-sale system automatically verifies the coupon's validity, checks for proper usage conditions, and applies the discount without requiring clerk intervention. This automation eliminates the time-consuming manual verification steps while ensuring accurate and reliable discount delivery.
Data Source
AI summary
Methods and systems are described for issuing and settling electronic coupons. A financial service host may receive authorization and settlement information, wherein the authorization and settlement information comprises an account number of the consumer. The account number may be linked to an account of the consumer enrolled in an electronic coupon program. The methods and system may also include transmitting a notification to the consumer that indicates the electronic coupon has been redeemed. A monetary value associated with the electronic coupon may be debited from an account linked to the merchant, and the account of the consumer may be credited with the monetary value associated with the electronic coupon.