Location-Based Transaction System for Smartwatch Payment

Solution Overview

Problem

Existing mobile payment technologies, such as NFC and MST, require additional hardware in devices like smartwatches, increasing size and cost, and necessitate close proximity to POS devices, which is impractical for small devices like smartwatches.

Innovation Solution

A system that uses location information, along with user authentication and biometric data, to facilitate transactions over a wide area network, allowing mobile devices to communicate with host devices to identify merchants and process payments without the need for additional hardware or close proximity to POS devices.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If NFC or MST circuitry is added to smartwatches to enable transactions, then transaction capability is improved, but device size and cost increase

Engineering Contradiction:

Improvetransaction capabilityVSAvoiddevice size

Core Design Contradiction:

Adaptability or versatilityVSVolume of moving object

Solution Approach 1:

The patent uses a smartphone as an intermediary device that contains the necessary NFC/MST circuitry to communicate with the POS system. The smartwatch pairs with the smartphone via Bluetooth, allowing the smartphone to handle the payment communication while the smartwatch provides user interface and location services. This eliminates the need to embed payment circuitry directly in the smartwatch.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The smartphone serves multiple functions: it acts as the payment device with NFC/MST capability, the communication hub with the POS system, and the processing device for location-based transaction identification. By consolidating these functions in one device, the smartwatch remains small while still enabling transaction capability.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Adaptability or versatility

If NFC or MST circuitry is added to smartwatches to enable transactions, then transaction capability is improved, but manufacturing cost increases

Engineering Contradiction:

Improvetransaction capabilityVSAvoidmanufacturing cost

Core Design Contradiction:

Adaptability or versatilityVSEase of manufacture

Solution Approach 1:

The patent uses a smartphone as an intermediary device that contains the necessary NFC/MST circuitry to communicate with the POS system. The smartwatch pairs with the smartphone via Bluetooth, allowing the smartphone to handle the payment communication while the smartwatch provides user interface and location services. This eliminates the need to embed payment circuitry directly in the smartwatch.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The smartphone serves multiple functions: it acts as the payment device with NFC/MST capability, the communication hub with the POS system, and the processing device for location-based transaction identification. By consolidating these functions in one device, the smartwatch remains small while still enabling transaction capability.

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Reliability

If close proximity to POS device is required for NFC/MST transactions, then transaction reliability is improved, but ease of operation deteriorates

Engineering Contradiction:

Improvetransaction reliabilityVSAvoidease of operation

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The system performs preliminary actions by establishing a Bluetooth connection between the smartwatch and smartphone before the transaction occurs. The smartphone is pre-configured with the payment application and has established communication channels with the POS system. When the user initiates a payment, the smartphone already has the necessary connection protocols ready, so it can quickly complete the transaction without requiring the user to physically approach the POS device.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent uses a smartphone as an intermediary device that contains the necessary NFC/MST circuitry to communicate with the POS system. The smartwatch pairs with the smartphone via Bluetooth, allowing the smartphone to handle the payment communication while the smartwatch provides user interface and location services. This eliminates the need to embed payment circuitry directly in the smartwatch.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS12165126B2System and method for location-based transactions

Publication Date: 2024.12.10 GIRAUDO ANTHONY

AI summary

A system and method for using at least location information to facilitate a transaction is provided. In one embodiment of the present invention, a mobile application operating on a mobile device is used to determine a location of the mobile device. Location information is then provided to a host device, where it is used to identify a merchant. Information is also entered (or acquired) to identify a shopping cart that is used during a shopping session. As items are placed within the cart, information concerning the items is presented to the user via a display on the cart and/or the mobile device. The first party can then interact with the same to enhance their shopping experience (e.g., access coupons, search for items, etc.). Once the user is done, the host device will charge a payment method linked to the user's account for items that are in the shopping cart.