Host-Processor Payment Processing Without Secure-Element Access
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Solution Overview
Problem
Current NFC systems tightly couple secure elements with a single trusted service manager (TSM), limiting users to a single payment provider and preventing access to services from other providers.
Innovation Solution
A method for processing payment transactions without accessing the secure element, using a terminal reader to establish a communication channel with the user device, where the application host processor generates responses indistinguishable from those of a conventional secure element, enabling payment transactions with proxy account numbers routed through an account management system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a secure element is used for payment transactions, then security is improved, but user flexibility and access to multiple payment providers deteriorates
Solution Approach 1:
The patent segments the payment processing functionality by separating the secure element's response generation from the actual payment data storage. The secure element generates standardized responses, while payment account information is stored in the application host processor, allowing multiple payment providers to be accessed without compromising security.
Solution Approach 2:
The patent introduces an intermediary layer (the application host processor acting as a secure payment processor) that mediates between the terminal reader and the payment account information. This intermediary generates responses that are indistinguishable from those of a conventional secure element, thereby maintaining security while enabling access to multiple payment providers.
2Device complexity
If a single trusted service manager is coupled with the secure element, then system complexity is reduced, but adaptability to different payment providers deteriorates
Solution Approach 1:
The patent makes the application host processor universal by enabling it to store and process multiple payment account information from different payment providers. The secure element's response generation capability is made universal through standardized response formats that work with any payment provider, eliminating the need for provider-specific secure elements.
Solution Approach 2:
The patent adds a new dimension to the payment processing architecture by introducing a separate application host processor that handles payment account information independently from the secure element. This dimensional separation allows the system to maintain simple secure element-TSM coupling while adding multi-provider capability through the application layer.
3Adaptability or versatility
If payment account information is stored in the application host processor, then user flexibility is improved, but security requirements increase
Solution Approach 1:
The application host processor acts as a secure intermediary that stores payment account information and generates responses indistinguishable from those of a conventional secure element. This intermediary maintains security by implementing secure payment processing protocols while enabling flexible access to multiple payment providers.
Solution Approach 2:
The patent changes the security model parameters by moving payment data storage from the secure element to the application host processor, while compensating with enhanced security measures including secure communication channels, authentication protocols, and encrypted data storage to meet increased security requirements.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Enables users to process payments using proxy account numbers, allowing access to multiple payment providers and maintaining security without the need for a secure element, thus enhancing user flexibility and security.
Implementation Method 1
A user taps the user device in the terminal reader's radio frequency field
Data Source
AI summary
A user conducts a wireless payment transaction with a merchant system by transmitting payment information from a user device to a terminal reader without accessing a secure element resident on the user device. A user taps a user device in a merchant system's terminal reader's radio frequency field. The terminal reader and the user device establish a communication channel and the terminal reader transmits a signal comprising a request for a payment processing response. The signal is received by the user device and converted by a controller to a request understandable by an application host processor. The controller transmits the request to the application host processor, where the request is processed, and a response is transmitted to the controller and then to the terminal reader. The response generated by the application host processor is identifiable by the merchant system as a payment response.