Geofence Offer Delivery for Precise Local Transaction Targeting

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Solution Overview

Problem

Merchants face difficulties in identifying and promoting their products or services to potential customers within a specific geographic area effectively.

Innovation Solution

A geofence-based system that utilizes location information from recipient devices to transmit targeted offers and transaction requests to users within a defined geographical area, integrating data from provider and recipient systems to facilitate efficient promotion and transaction processing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If merchants use traditional broad-based marketing methods to promote products or services, then they can reach a larger audience, but they cannot effectively identify and target potential customers within a specific geographic area

Engineering Contradiction:

Improvegeographic targeting precisionVSAvoidmarketing efficiency

Core Design Contradiction:

Measurement precisionVSProductivity

Solution Approach 1:

The system applies local quality by delivering different marketing content to different geographic locations. Geofences are created around specific merchants, and offers are tailored to recipients within those geographic boundaries. This allows merchants to target promotions precisely to local customers rather than using broad-based marketing, resolving the contradiction between geographic targeting precision and marketing efficiency.

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The system enables self-service by allowing merchants to define their own geofences and promotional offers without requiring manual recipient identification. The transfer service computing system automatically handles geofence creation, recipient identification based on location data, and offer delivery. This automated approach improves marketing efficiency while maintaining high geographic targeting precision.

Inventive Principle:

Principle #25Self-service

2Measurement precision

If merchants manually identify and contact potential customers in a geographic area, then they can target specific recipients, but the process becomes time-consuming and resource-intensive

Engineering Contradiction:

Improverecipient identification accuracyVSAvoidtime for recipient identification

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system implements preliminary action by pre-defining geofences around merchant locations before marketing campaigns begin. Recipients are automatically identified as they enter these pre-established geographic boundaries, eliminating the need for manual recipient identification during the campaign. This resolves the contradiction by providing both accurate recipient identification and time efficiency through automated, pre-configured geofencing.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system replaces manual mechanical processes of recipient identification with automated electronic location-based detection. GPS coordinates and geofence algorithms automatically determine which recipients are within the target geographic area, substituting human effort with computational processes. This achieves both high identification accuracy and time efficiency.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Productivity

If merchants send promotional offers to all users, then they maximize potential reach, but they waste resources on users outside their service area

Engineering Contradiction:

Improvemarketing reachVSAvoidresource waste in promotion

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The system applies local quality by delivering promotions only to recipients within geofenced areas surrounding specific merchants. This geographic segmentation ensures that marketing resources are concentrated on relevant local customers rather than being wasted on users outside the service area. The transfer service computing system automatically filters recipients based on their location relative to merchant geofences, resolving the contradiction between maximizing reach and minimizing resource waste.

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The system uses partial action by sending promotions to only the subset of users who are actually within the merchant's service area, rather than to all users. This targeted approach maintains adequate marketing reach within the relevant geographic population while avoiding the resource waste of contacting users who cannot potentially become customers due to location constraints.

Inventive Principle:

Principle #16Partial or excessive action

Data Source

PatentUS20260065322A1Systems and methods for geofence-based transaction communications

Publication Date: 2026.03.05 WELLS FARGO BANK NA

AI summary

Systems and methods are described herein for transmitting offers based on a geofence via a transfer service computing system. Such systems and methods may use a transfer service computing system to receive, an offer relating to a merchant and corresponding to a geographical area associated with the merchant, identify a geofence including the geographical area, receive a location of the user device and determine that the location of the user device is within the geofence. The transfer service computing system may transmit, to the user device, the offer based on the determination that the location of the user device is within the geofence. The transfer service computing system may transmit a transaction request to the provider computing system or to a third-party computing system based on receiving an acceptance of the offer from the user device.