Encrypted Payment Packet Generation for Fee Reduction
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current electronic devices face challenges in conducting direct financial transactions between individuals without incurring high fees, as existing systems often require interaction with payment networks and may not prove the physical presence of credit cards, discouraging users from using their devices for such transactions.
Innovation Solution
The implementation of a secure electronic device system that enables person-to-person payments by generating and transmitting encrypted payment packets with financial credentials, payment amounts, and signs between devices, using a secure element and encryption keys, allowing for secure and fee-efficient transactions without the need for traditional payment networks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If credit-card transactions are processed by a payment network, then financial transactions can be conducted between individuals, but higher fees are charged and the process becomes complicated and time-consuming
Solution Approach 1:
The patent extracts the essential payment verification function from the complex payment network infrastructure. By using a secure element that stores payment credentials and generates cryptographic proofs of physical card presence, the system removes the need for intermediaries while maintaining transaction validity. This extraction simplifies the transaction process to direct peer-to-peer communication between electronic devices.
Solution Approach 2:
The patent introduces a cryptographic intermediary mechanism that mediates trust between transacting parties without requiring traditional payment network infrastructure. The secure element acts as a trusted intermediary by generating digital signatures and proofs that verify card presence and authorization, enabling direct transactions while maintaining security standards equivalent to network-processed transactions.
2Reliability
If credit-card providers charge higher fees for transactions without proof of physical credit card presence, then security is maintained, but users are discouraged from using electronic devices for transactions
Solution Approach 1:
The patent creates a cryptographic copy or representation of the physical card presence proof within the secure element. Instead of requiring the actual physical card to be present, the system generates digital proofs (such as cryptographic signatures or tokens) that replicate the verification function of physical card presence. This copying approach maintains security reliability while enabling electronic device transactions without incurring higher fees.
3Loss of energy
If direct financial transactions are conducted between individuals using electronic devices, then fees are reduced, but the lack of payment network processing complicates the transaction process
Solution Approach 1:
The patent segments the transaction process into distinct functional components: the secure element handles credential verification and proof generation, the processor manages transaction logic and communication, and the interface handles user interaction. This segmentation allows each component to specialize in its function, reducing overall system complexity while enabling fee-efficient direct transactions between devices.
Data Source
AI summary
Using electronic devices (such as cellular telephones) that communicate wirelessly, two individuals can make person-to-person payments. In particular, an individual using an electronic device may identify another proximate electronic device of a counterparty in a financial transaction, and may provide an encrypted payment packet to the other electronic device that includes: a financial credential for a financial account of the individual, a payment amount, and a payment sign. When the other electronic device receives the encrypted payment applet, the counterparty may accept the payment in the financial transaction specified by the encrypted payment packet. Then, the other electronic device may provide the encrypted payment packet and another encrypted payment packet (with a financial credential for a financial account of the counterparty, the payment amount and the opposite payment sign) to a third party that completes the financial transaction.