Installment Payment Provider Intermediary for Merchant Checkout
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Solution Overview
Problem
Existing installment programs offered by merchants often have unfavorable terms for users and lack integration with third-party installment providers, leading to limited access and friction in coordinating installment payments.
Innovation Solution
A system that provides users with installment options from various providers at virtual merchant locations, where an installment payment provider coordinates and offers installment options during checkout, integrating with digital wallets to facilitate acceptance and execution of installment plans, thereby providing users with more flexible payment options and reducing friction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants offer installment programs directly, then users can access installment payment options, but the terms are unfavorable and access is limited
Solution Approach 1:
The patent introduces a third-party installment provider as an intermediary between merchants and users. This intermediary competes to offer favorable installment terms to users while integrating with the merchant's checkout process, thereby resolving the contradiction between providing installment access and maintaining favorable terms.
Solution Approach 2:
The system enables multiple third-party installment providers to offer their services through a single integrated checkout interface. This universal approach allows users to access various installment options from different providers without leaving the merchant's platform, expanding access while maintaining competitive favorable terms.
2Object-generated harmful factors
If third-party installment providers operate separately from merchants, then users can access competitive installment terms, but coordination friction increases and access is limited
Solution Approach 1:
The patent merges the third-party installment provider's checkout process with the merchant's existing checkout flow. This integration combines the benefits of competitive third-party terms with the convenience of seamless merchant platform access, eliminating coordination friction while expanding user access.
Solution Approach 2:
The system acts as an intermediary layer that connects third-party installment providers with merchant checkouts. This intermediary enables smooth coordination between separate entities, reducing friction while maintaining access to multiple competitive installment options.
3Adaptability or versatility
If installment programs are integrated into merchant platforms, then user access is improved, but device complexity increases
Solution Approach 1:
The patent creates a universal integration interface that allows multiple third-party installment providers to connect to merchant platforms through a standardized process. This universal approach simplifies the integration complexity by providing a single interface that handles multiple providers, rather than requiring separate integrations for each.
Data Source
AI summary
Systems and methods are provided for providing installment options to users for transactions by the users at merchants. One example computer-implemented method includes receiving a request for an installment payment, from a user, via a wallet software development kit (SDK) at a merchant, where the installment payment is for a transaction between the user and the merchant, and then determining eligibility of the merchant for the installment payment based on information in the request and responding to the request with eligible installment types. The method also includes receiving a second request, via an installment SDK at the merchant, for installment options consistent with a selected installment type, determining an installment option for the transaction, and responding to the second request with the installment option. The method then includes, in response to the installment option, creating an installment plan for the installment option and storing the installment plan in memory.