Limit-Use Encrypted Code for Secure Offline Value Transfer
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Solution Overview
Problem
Current mobile payment methods, such as SMS-based, mobile web, and NFC-based systems, face limitations in user selection of payment processing agents, require internet connectivity, and pose security concerns, especially in offline transactions and infrastructure investment for small businesses.
Innovation Solution
A system and method for securely transferring values between users using limit-use encrypted codes, where users register with servers, agree on decryption and encryption apparatuses, and transmit encrypted requests via personal computing devices, utilizing NFC or graphic codes, with usage limits and PIN authentication for secure transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If SMS-based mobile payment is used, then carrier-based payment processing is enabled, but user selection of payment processing agents is limited and wireless communication is required
Solution Approach 1:
The patent extracts the payment request from requiring wireless communication infrastructure and embeds it in a graphical code that can be physically transferred. The payment information is taken out of the SMS protocol and represented as a standalone visual code that can be read by any device with a camera, eliminating dependency on carrier-based SMS systems.
Solution Approach 2:
The patent introduces a graphical code as an intermediary carrier for payment information. Instead of direct wireless communication between payer and payee systems, the payment request is encoded into a visual format that serves as a mediator, allowing transfer through physical means such as photographing or printing, thus bypassing wireless communication requirements.
2Ease of operation
If mobile web payment is used, then internet connection is required for payment processing, but offline transactions cannot be performed
Solution Approach 1:
The patent performs preliminary encoding of payment information into a graphical code that contains all necessary payment data in advance. The payer's device prepares and stores the complete payment request in visual form, which can then be transferred and processed offline without requiring internet connection during the actual payment moment.
Solution Approach 2:
The patent creates a visual copy of the payment request in graphical code format. This copy contains all essential payment information and can be reproduced through photographing or printing, allowing the payment data to be transferred without requiring the original device or internet connection, enabling offline transaction processing.
3Ease of manufacture
If NFC-based payment is used, then contactless payment processing is enabled, but significant infrastructure investment is required for small businesses
Solution Approach 1:
The patent replaces expensive, durable NFC terminals with inexpensive, disposable graphical codes. Instead of investing in costly NFC equipment, small businesses can simply display a graphical code that can be read by any smartphone camera. The graphical code serves as a low-cost, single-use payment interface that eliminates the need for expensive infrastructure.
Solution Approach 2:
The patent substitutes the mechanical NFC hardware system with an optical system based on graphical codes. Instead of requiring NFC readers and writers, the solution uses visual display and camera capture mechanisms that are already universally available on smartphones, replacing specialized hardware with general-purpose optical components.
4Reliability
If regular text message is used for payment, then simple implementation is achieved, but security and privacy concerns arise
Solution Approach 1:
The patent applies different quality levels to different parts of the payment system. The graphical code itself remains publicly visible and unencrypted, maintaining simplicity for transmission. However, the payment processing backend implements strong encryption and security measures, concentrating security efforts where they are most needed rather than encrypting the entire communication channel.
Solution Approach 2:
The patent introduces a server-based intermediary that handles security-sensitive operations. The graphical code serves as a secure intermediary that carries payment information without exposing it in plain text during transmission. The server acts as a trusted mediator that verifies and processes the encoded information with appropriate security measures, separating the simple transmission layer from the secure processing layer.
Data Source
AI summary
A system and method for facilitating a secured value transfer. A first user and the system obtain a pair of encryption and decryption apparatuses. The first user creates a request including his unique identifier and a value to be transferred. The first user encrypts the request using the encryption apparatus and sends it to the second user. The second user sends to the system the request and the second user's unique identifier. The system uses the decryption apparatus to decrypt the request. The system checks the usage of the request against a threshold limit. After a successful usage check, the system then transfers the value from the first user to the second user. The system may comprise (a) a plurality of system server for exchanging data with users' personal computing devices, registering users, and conducting transactions, and (b) data storages storing user accounts and other persistent data.