Federated Directory for Secure B2B Payment Data Exchange
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Solution Overview
Problem
Business-to-business (B2B) transactions face inefficiencies in managing and securely exchanging sensitive payment information, leading to errors and trust issues due to reliance on centralized databases and proprietary payment networks.
Innovation Solution
A distributed ledger system, such as blockchain, is used to create a permissioned and federated directory for businesses to securely store, share, and control payment information, with Credential Service Providers (CSPs) handling sensitive data off-chain and validating access permissions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a centralized database is used to store all payee data, then access to payment information is simplified, but security and trust are compromised due to single-point failure and centralized control
Solution Approach 1:
The patent segments the centralized database into multiple distributed nodes across different organizations. Each node holds a copy of the payment information, eliminating single-point failure. The segmentation allows the system to maintain ease of access while improving security through decentralization, as no single entity controls all data.
Solution Approach 2:
The patent introduces blockchain technology as an intermediary layer between payers and payees. This intermediary provides a trusted, immutable ledger that verifies payment information without requiring direct trust between parties. The blockchain mediator enables secure access while maintaining decentralization, resolving the contradiction between ease of operation and reliability.
2Reliability
If proprietary permissioned payment networks are used, then security is improved through controlled access, but adaptability and ease of integration are reduced
Solution Approach 1:
The patent creates a universal payment information exchange system that works across multiple organizations and industries. The standardized data formats and protocols allow different entities to integrate seamlessly while maintaining their own security policies. This universality enables the system to provide both security through controlled access and adaptability through broad compatibility.
Solution Approach 2:
The patent implements dynamic permission management where access controls can be adjusted based on specific transaction requirements. Rather than static permissioning, the system allows flexible grant and revocation of access rights, enabling both strong security controls and easy adaptation to different business scenarios and partners.
3Manufacturing precision
If manual tracking of payment information changes is implemented, then data accuracy can be maintained through careful verification, but productivity and timeliness are significantly reduced
Solution Approach 1:
The patent implements automated feedback mechanisms where changes to payment information are immediately detected, validated, and propagated across the network. The system continuously monitors for updates and automatically notifies relevant parties, eliminating manual tracking while maintaining data accuracy through automated verification processes.
Solution Approach 2:
The patent enables payees to self-update their payment information directly in the system. When a payee changes their bank account or other payment details, the update is automatically recorded and distributed to all connected payers without requiring manual intervention. This self-service approach maintains data accuracy through built-in validation while dramatically improving productivity and timeliness.
4Ease of operation
If centralized business services are used to track payment information, then ease of operation is improved, but reliability is worsened due to dependency on single service availability
Solution Approach 1:
The patent segments the centralized business service into multiple distributed service nodes. Each node can independently operate and maintain payment information, eliminating the single-point failure risk. The segmentation preserves ease of operation through standardized interfaces while improving reliability through redundancy and distributed architecture.
Data Source
AI summary
Embodiments provide a methods and systems for securely providing access to sensitive information for a plurality of entities. The method includes receiving, by a payer credential service provider (CSP), from a payer, a request for payee electronically protected information (EPI). The payer CSP transmits to a payee CSP a request for payee EPI data. The payee CSP validates, using a distributed ledger system, whether the payer has permission to request the payee EPI. The payer CSP receives the payee EPI data from the payee CSP. The payer CSP sends the payee EPI data to the payer.