Encrypted Payment Transactions via Derived Key
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Solution Overview
Problem
Existing mobile payment systems face challenges in securing payment data during transactions, particularly when using digital wallets, as they often require significant infrastructure changes and may expose payment devices to security risks if compromised.
Innovation Solution
The system encrypts payment data using a derived key generated from a base derivation key and a unique wallet serial number, ensuring that even if a payment device is compromised, the data remains secure, and eliminates the need for a token database shared between wallet providers and merchant processors by using encryption rather than tokenization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If payment data is stored in clear text on payment devices for digital wallet transactions, then transaction processing is simplified and faster, but security is compromised if the device is compromised
Solution Approach 1:
The system performs preliminary encryption of payment data using a derived key before the data leaves the wallet provider computer. This pre-encryption ensures that even if the payment device is compromised, the stolen data remains encrypted and unusable. The encryption is performed in advance during the transaction initiation phase, resolving the contradiction between fast processing and security.
2Reliability
If tokenization is used to secure payment data, then security is improved, but infrastructure complexity increases due to the need for a shared token database between wallet providers and merchant processors
Solution Approach 1:
The invention extracts the security function from the complex tokenization infrastructure and implements it directly through encryption at the wallet provider computer. By removing the need for a shared token database and replacing it with straightforward encryption using derived keys, the system maintains security while eliminating the complex infrastructure requirements of tokenization.
3Adaptability or versatility
If encryption keys are generated and stored at multiple locations for decryption capability, then transaction flexibility is improved, but the number of keys to be managed and stored increases
Solution Approach 1:
The system introduces a key derivation function as an intermediary that generates the actual encryption key from a base derivation key and a serial number at the time of transaction. This eliminates the need to pre-store multiple encryption keys, as each key is dynamically derived when needed. The base derivation key and serial number serve as compact intermediaries that enable flexible key generation without increasing key storage requirements.
Data Source
AI summary
Systems, apparatuses, and methods are provided for conducting encrypted payment transactions. In some embodiments, a payment device may send account credentials for a digital wallet to a wallet provider computer, and receive encrypted payment data from the wallet provider computer in response. The payment device may then send a request to initiate a transaction to a transaction processor computer (e.g., a merchant computer or a merchant processor computer), the request to initiate the transaction including the encrypted payment data. The transaction processor computer can then decrypt the encrypted payment data and conduct the transaction.