Location-Aware Mobile Payment Authorization
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Solution Overview
Problem
The increasing use of mobile devices for financial transactions introduces new security risks due to the potential for unauthorized or unintended transfers, as these devices can initiate transactions from anywhere, lacking real-time verification of the transaction parties' proximity.
Innovation Solution
Implementing location-aware technology in mobile devices to determine the physical proximity of transaction parties, allowing financial institutions or transaction processors to take security measures such as disallowing transactions or requiring additional authorization if parties are not near each other, thereby reducing fraudulent activities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If mobile devices are used to initiate financial transactions from anywhere, then transaction convenience and accessibility are improved, but security risks increase due to potential unauthorized transfers
Solution Approach 1:
The patent introduces location information as an intermediary verification element between the transaction initiator and the transaction processor. The system obtains location data from mobile devices and uses this intermediary information to verify whether the transaction is being initiated at an authorized location, thereby resolving the security risk while maintaining convenience
Solution Approach 2:
The system performs preliminary location verification before authorizing the transaction to proceed. By checking the location information in advance and comparing it against authorized locations, the system prevents unauthorized transfers before they occur, rather than detecting them after the fact
2Reliability
If location verification is implemented to prevent unauthorized transactions, then transaction security is improved, but system complexity increases
Solution Approach 1:
The patent leverages the existing multi-functional capabilities of mobile devices, which already possess location determination functionality for navigation and other purposes. By reusing this existing capability for transaction verification, the system achieves enhanced security without adding significant complexity, as the location determination hardware and software already exist in the devices
Solution Approach 2:
The mobile device itself provides the location information needed for verification through its built-in location determination capabilities. The device essentially serves itself by providing the verification data it already possesses, eliminating the need for separate verification hardware or complex external verification systems
Data Source
AI summary
A mobile payment network receives location information from mobile devices used to conduct transactions between two account holders, and qualifies any requested transactions based on the physical proximity of the two devices relative to each other.