Federated Payment Directory for Cross-Network Funds Transfers

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Solution Overview

Problem

Existing peer-to-peer (P2P) funds transfer systems require complex and time-consuming authentication and identification processes, necessitating users to enroll in multiple payment directories with separate credentials, leading to security risks and user inconvenience.

Innovation Solution

A federated directory management system that integrates multiple P2P payment directories, normalizes data, resolves data collisions, and facilitates funds transfers between users of different directories without the need for users to enroll in each directory, using a unified database and predefined rules for secure and efficient transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If users enroll in multiple payment directories with separate credentials, then funds transfer security is improved, but authentication complexity and time consumption increase

Engineering Contradiction:

Improvefunds transfer securityVSAvoidauthentication complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent merges multiple payment directory credentials into a single federated credential system. Users authenticate once with their home directory credentials, and the federated directory system handles authentication across multiple directories, eliminating the need for separate credentials at each directory while maintaining security through centralized credential verification.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The federated directory acts as an intermediary between users and multiple payment directories. It receives authentication requests, verifies credentials against the user's home directory, and facilitates transfers without requiring users to directly interact with multiple directory authentication systems, thereby reducing complexity while preserving security.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If users enroll in multiple payment directories, then funds transfer capability across directories is improved, but user convenience deteriorates

Engineering Contradiction:

Improvefunds transfer capabilityVSAvoiduser convenience

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The federated directory system provides universal access to multiple payment directories through a single interface. Users can initiate transfers to any directory participant using their home directory credentials, and the system automatically routes the transfer through the appropriate directory, making the system as versatile as enrolling in multiple directories while maintaining the convenience of a single credential system.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If separate credentials are required for each payment directory, then directory security is maintained, but time consumption for authentication increases

Engineering Contradiction:

Improvedirectory securityVSAvoidauthentication time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary authentication by verifying the user's credentials against their home directory before initiating the transfer. The federated directory system pre-establishes trust relationships and validates credentials in advance, so that when a transfer is initiated, authentication is already complete or can be quickly verified, eliminating the need for time-consuming repeated authentication at each directory while maintaining security through pre-validated credentials.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS20260030609A1Systems and methods for funds transfers via a federated directory

Publication Date: 2026.01.29 WELLS FARGO BANK NA

AI summary

A system, method, and apparatus for interdirectory funds transfers is provided. A system includes a federated directory management system coupled to one or more peer-to-peer payment directories. A processing circuit of the federated directory management system is structured to receive data from each of the two or more peer-to-peer payment directories. The processing circuit is structured to normalize the received data to create a uniform database by converting at least a portion of the received data into a uniform file type, providing the converted portion of the received data to the uniform database, and refraining from providing a second portion of the received data to the uniform database. The processing circuit is structured to identify a data collision involving the normalized received data within the uniform database. The processing circuit is structured to resolve the data collision and process a transaction based on resolving the data collision.