Installment Service Provider Authentication Integration
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Solution Overview
Problem
Existing installment options are limited and cumbersome due to a lack of integration with the payment process, leading to friction in coordinating transactions and making integration with existing checkout functionality specialized, tedious, and difficult to manage.
Innovation Solution
The integration of installment options into enhanced authentication messaging for transactions, allowing users to select installment options during the authentication process, which are then automatically set up and managed by third-party installment providers, without disturbing the merchant's infrastructure.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If installment options are integrated into enhanced authentication messaging, then user flexibility and ease of operation are improved, but system complexity increases
Solution Approach 1:
The patent introduces an installment service provider as an intermediary that handles the complexity of installment option management separately from the merchant's authentication system. The provider receives authentication requests, adds installment options, and manages the installment agreements, allowing the merchant to offer flexible payment options without directly managing the complex installment logic.
Solution Approach 2:
The enhanced authentication messaging system is extended to serve multiple functions: it not only performs security authentication but also presents installment options to users. This multi-functionality allows the existing authentication infrastructure to be leveraged for payment flexibility without creating a completely separate system.
2Adaptability or versatility
If third-party installment providers are used, then adaptability and funding options are improved, but device complexity increases
Solution Approach 1:
The third-party installment service provider acts as an intermediary layer between the user and the merchant's payment system. This provider handles the complexity of managing multiple funding options and installment agreements, allowing the merchant to offer diverse payment terms without directly implementing the complex logic for managing each option.
3Ease of operation
If installment options are presented during authentication sequence, then ease of operation is improved, but the authentication process time increases
Solution Approach 1:
The patent merges the installment option presentation with the existing authentication challenge sequence. Instead of adding a separate step for installment selection, the options are integrated into the authentication flow that users are already encountering, allowing them to select payment terms while completing authentication without significant additional time investment.
Data Source
AI summary
Systems and methods are provided for extending installment options to users. One example computer-implemented method includes, as part of an authentication challenge to a user for a transaction, requesting, by a communication device of the user, installment options from an installment service provider (ISP) based on an identifier specific to a first party involved in the transaction. In response, the ISP retrieves the requested installment options and provides them to the communication device. The method also includes displaying, by the communication device, the installment options to the user, soliciting a selection of one of the installment options, and, in response to the selection, identifying the selected one of the installment options to the ISP, whereby the ISP records the selected installment option as payment for the transaction.