Real-time Loyalty Rewards Redemption via Mobile Image Capture
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Solution Overview
Problem
Traditional customer loyalty programs require specialized point-of-sale devices and coordinated efforts between merchants and loyalty program providers for real-time redemption, limiting instant gratification and convenience for customers.
Innovation Solution
A method and system that allow real-time redemption of accumulated loyalty rewards by sending alerts to a customer's mobile device, enabling them to decide whether to use rewards for a transaction without needing specialized point-of-sale devices, using a computing system to determine eligibility and process redemption instructions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional customer loyalty programs use specialized point-of-sale devices and coordinated merchant cooperation for real-time redemption, then real-time rewards redemption capability is improved, but device complexity and implementation difficulty increase
Solution Approach 1:
The patent uses mobile devices (smartphones, tablets) as universal copies of specialized POS devices. The mobile device's camera captures an image of the rewards card, and image processing algorithms extract reward information, replacing the need for specialized hardware readers at the point of sale.
Solution Approach 2:
The system enables customers to perform rewards redemption themselves using their own mobile devices. The customer points the mobile device camera at the rewards card, the system processes the image locally or remotely, and the customer receives instant feedback on reward balance and redemption options without requiring merchant staff or specialized equipment.
2Speed
If traditional loyalty programs require coordinated cooperation between loyalty program providers and merchants with specialized POS devices, then real-time redemption functionality is improved, but ease of operation is worsened
Solution Approach 1:
The patent makes the mobile device universal by using it for multiple functions: capturing the rewards card image, processing the image to extract reward information, communicating with the loyalty program provider, and displaying redemption options. This single universal device replaces multiple specialized systems.
Solution Approach 2:
The mobile device acts as an intermediary between the customer, the rewards card, and the loyalty program provider. It captures data from the rewards card, transmits it to the provider for verification, and relays redemption decisions back to the customer, simplifying the interaction model.
3Reliability
If loyalty programs use traditional website login methods for reward management, then system security is improved, but loss of time increases
Solution Approach 1:
The customer's mobile device already contains authentication credentials (device unlock, app login) established beforehand. When needed for rewards redemption, these pre-established credentials are immediately used without requiring a separate login process, reducing time loss while maintaining security.
Solution Approach 2:
The patent replaces the mechanical interaction of typing login credentials on a website with automated image recognition and device-based authentication. The mobile device camera captures the rewards card, automated algorithms process the image, and device authentication replaces manual login, significantly reducing the time required.
Data Source
AI summary
A method includes receiving, at a computing system, information regarding a transaction associated with a financial account of a customer. The method also includes determining, based at least in part on the information regarding the transaction, whether to provide a redemption alert to the customer. The method also includes providing the redemption alert to a mobile device of the customer if it is determined that the redemption alert is to be provided. The method further includes receiving a response to the redemption alert from the mobile device of the customer, where the response indicates whether at least a portion of accumulated loyalty rewards of the customer are to be used to pay for at least a portion of the transaction.