Geolocation-Based Payment Facilitation Without Card Infrastructure

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Merchants without card acquiring infrastructure cannot accept cashless payments, limiting their ability to receive payments from customers.

Innovation Solution

A method and system that uses electronic processing devices to facilitate payments by receiving a client device geolocation, determining a merchant identifier, providing merchant details, and authorizing payments without the need for card acquiring infrastructure, allowing customers to manually input payment instruments and amounts, and processing payments through a payment server.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a merchant installs card acquiring infrastructure (POS terminal), then cashless payment capability is improved, but device complexity and cost increase

Engineering Contradiction:

Improvecashless payment capabilityVSAvoidcard acquiring infrastructure

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent introduces a payment facilitation system as an intermediary between the customer's mobile device and the merchant. The system includes a server that receives payment authorizations from the customer's mobile device, determines merchant identifiers based on geolocation, and processes payments without requiring the merchant to have POS terminals or card acquiring infrastructure. This intermediary system enables cashless payments for merchants with minimal infrastructure.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Device complexity

If a merchant does not install card acquiring infrastructure, then device complexity is reduced, but cashless payment capability deteriorates

Engineering Contradiction:

Improvecard acquiring infrastructureVSAvoidcashless payment capability

Core Design Contradiction:

Device complexityVSAdaptability or versatility

Solution Approach 1:

The payment facilitation system is designed to work with any merchant regardless of their infrastructure. The server performs multiple functions including geolocation-based merchant identification, payment authorization processing, and payment routing. This universal system can serve merchants with no card acquiring infrastructure while maintaining compatibility with existing payment networks, enabling cashless payments across diverse merchant scenarios.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If mobile payment services use conventional card acquiring infrastructure, then payment processing reliability is improved, but device complexity requirement increases

Engineering Contradiction:

Improvepayment processingVSAvoidsupporting infrastructure

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent extracts the essential payment processing functionality from the traditional card acquiring infrastructure and consolidates it into a centralized payment facilitation server. The server handles merchant identifier determination based on client device geolocation, payment authorization validation, and payment routing. This extraction removes the requirement for merchants to have POS terminals while maintaining reliable payment processing through the centralized system.

Inventive Principle:

Principle #2Taking out (Extraction)

Data Source

PatentUS10909542B2Payment facilitation method and system

Publication Date: 2021.02.02 MASTERCARD INT INC

AI summary

There is provided a method and system for facilitating a payment from a customer to a merchant, and a client device for facilitating a payment from a customer to a merchant. The various aspects rely on use of a merchant identifier based on a client device geolocation.