Enhanced Mobile Wallet Payment Element Automating Credit Contracts
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Solution Overview
Problem
Small and mid-size retail merchants face inefficiencies in managing contract services for large-ticket items, as these services are time-consuming and lack automation, requiring manual record-keeping and collection processes.
Innovation Solution
The implementation of an Enhanced Mobile Wallet Payment Element (EMWPE) that allows merchants to offer electronic store credit to customers, enabling digital contracts with terms and conditions, automated book-keeping, and enforcement of repayment terms through a mobile wallet application, reducing the need for manual contract management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If manual contract management is used for credit services, then merchants can provide personalized credit terms to customers, but the administrative burden and time consumption increase significantly
Solution Approach 1:
The system enables automated self-service through the payment element that automatically manages credit terms, repayment schedules, and billing cycles without requiring manual merchant intervention. The payment element executes predefined credit agreements autonomously, reducing administrative burden while maintaining personalized credit services.
Solution Approach 2:
Manual mechanical processes of contract management are replaced by an electronic payment element system that automatically handles credit issuance, tracking, and collection. The payment element acts as a digital substitute for manual contract administration, automating record-keeping and repayment enforcement.
2Productivity
If automated payment elements are implemented, then administrative efficiency improves and manual work reduces, but the complexity of the payment system increases
Solution Approach 1:
The payment element is designed as a universal multi-functional component that can handle various credit arrangements, repayment schedules, and billing cycles through a single standardized interface. This universality allows the system to manage diverse credit scenarios without proportionally increasing complexity, as the same payment element framework adapts to different credit terms.
3Extent of automation
If digital contracts with automated enforcement are used, then collection processes are streamlined, but the technical infrastructure requirements increase
Solution Approach 1:
The payment element serves as an intermediary that bridges the gap between simple mobile wallet functionality and complex credit enforcement requirements. It encapsulates the automated enforcement logic within a standardized payment element framework, allowing automated contract execution without requiring the merchant's mobile device to directly implement complex enforcement infrastructure.
Data Source
AI summary
Disclosed in some examples are methods, systems, and machine readable mediums which provide a store credit issued electronically to a mobile wallet application from a merchant. This credit may be issued to a mobile wallet in the form of an enhanced wallet payment element. This enhanced wallet payment element may include the terms and conditions (e.g., repayment terms) of the credit (e.g., a digital/smart contract). The customer may accept or reject these terms. For example, when the customer accepts the terms, the enhanced wallet payment element digitally signs the agreement and indicates acceptance to the merchant mobile wallet system (e.g., sends the digital signature to the merchant). Once accepted, the enhanced wallet payment element may be utilized to pay for goods or services subject to the terms and conditions.