Geo-Fenced Payment Zones for Aggregated Microtransaction Settlement
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Solution Overview
Problem
Cryptocurrency-based transactions are slow and unsuitable for frequent, small transactions typical in environments like zoos or shopping malls where users move frequently and make multiple purchases, while credit card transactions are quick but not integrated with geo-location for efficient microtransactions.
Innovation Solution
A system utilizing geo-fencing to track user locations and transactions within bounded areas, creating a transaction history record, and automatically initiating payments when the user leaves the area, with options for verification and confirmation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If cryptocurrency-based transactions are used, then security and decentralization are improved, but transaction speed deteriorates making it unsuitable for frequent microtransactions
Solution Approach 1:
The system segments the transaction process into two distinct phases: (1) rapid local recording of microtransactions within a geo-fenced area using traditional payment methods, and (2) batch settlement of aggregated transactions using cryptocurrency blockchain technology. This segmentation allows the system to enjoy the security benefits of cryptocurrency while maintaining the speed advantages of traditional payments for individual microtransactions.
Solution Approach 2:
The system performs preliminary actions by recording and aggregating multiple microtransactions locally within the geo-fenced area before initiating the actual cryptocurrency settlement. The transaction history record is created and validated in advance, allowing the final blockchain settlement to process a bundled set of transactions rather than individual ones, thereby improving overall transaction speed while maintaining security.
2Speed
If credit card transactions are used, then transaction speed is improved, but integration with geo-location for efficient microtransactions deteriorates
Solution Approach 1:
The system merges traditionally separate functionalities by combining geo-location tracking (via GPS coordinates and geo-fencing) with credit card transaction processing. The payment terminal simultaneously captures location data and transaction data, creating a unified system that enables location-based microtransaction aggregation while maintaining the speed of credit card payments.
Solution Approach 2:
The payment terminal is designed with multi-functionality, serving both as a traditional credit card processor and as a geo-location tracking device. This universal device can handle various transaction types (credit card, cash, mobile payments) while simultaneously recording location information, enabling the system to adapt to different payment methods and environments.
3Measurement precision
If multiple individual transactions are processed separately, then transaction accuracy is improved, but user convenience and time efficiency deteriorate
Solution Approach 1:
The system performs preliminary recording and validation of multiple microtransactions as they occur within the geo-fenced area, storing them in a transaction history record. This preliminary action allows the system to maintain accurate transaction data while deferring the actual payment processing until the user exits the area, thereby eliminating the need for repeated payment interactions and saving time.
Solution Approach 2:
The system maintains continuous tracking and recording of transactions as the user moves within the geo-fenced area, without requiring interruption for each payment. The transaction history is continuously updated and validated, ensuring accuracy while allowing the user to proceed with their activities uninterrupted. The payment action is deferred until a natural breakpoint (area exit), maintaining continuity of the user experience.
Data Source
AI summary
Exemplary systems, methods, and computer-accessible mediums can include, for example, receiving a first location of a user(s) and time information associated with that location, initiating a record for the user(s) based on the location and the time information, receiving a second location of the user(s), where the second location can be in a second bounded area, storing in record, a transaction(s) associated with the user(s) based on the second location, and automatically initiating a single payment for the transaction(s) when the user(s) leaves the first location.