Loyalty Rewards Account Mapping in Digital Wallets
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Solution Overview
Problem
Digital wallet management is cumbersome due to the need for authorization phone calls and lack of support for loyalty points in digital transactions, preventing users from fully utilizing digital wallet services, especially when adding loyalty rewards accounts.
Innovation Solution
A system that maps loyalty accounts to wallet tokens, allowing for secure integration with digital wallets, enabling transactions using loyalty points by routing requests through a loyalty settlement process based on account type, and updating digital wallets in real-time.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If authorization phone calls and security steps are required to add accounts to digital wallet, then security is improved, but ease of operation deteriorates
Solution Approach 1:
The system performs preliminary authentication and account verification through the servicing application before the user needs to use the digital wallet. The account is pre-approved and configured, so when the user wants to make a payment, the authentication has already been completed in advance, eliminating the need for authorization phone calls at the point of use.
Solution Approach 2:
The servicing application acts as an intermediary between the user and the digital wallet system. It handles the complex authentication and account verification processes, translating user actions into properly formatted authentication requests and returning simplified results to the user interface, thereby shielding users from complex security procedures.
2Reliability
If servicing applications authenticate users with issuing bank, then security is improved, but adaptability deteriorates
Solution Approach 1:
The servicing application is designed to handle multiple account types (loyalty rewards accounts, credit card accounts, debit card accounts) through a unified authentication interface. The same application that authenticates traditional banking accounts also authenticates loyalty rewards accounts, making the system versatile while maintaining consistent security standards.
Solution Approach 2:
The authentication process is segmented into distinct components: user identification, account verification, and authorization. Each component can be independently configured for different account types, allowing the system to maintain strong authentication for banking accounts while adding loyalty account support without compromising security.
3Device complexity
If loyalty points are not supported in digital wallet transactions, then system complexity is reduced, but productivity deteriorates
Solution Approach 1:
The servicing application serves as an intermediary layer that translates loyalty points transactions into standard digital wallet transaction formats. It handles the conversion of loyalty points to equivalent monetary values and manages the interaction between the loyalty rewards system and the digital wallet infrastructure, thereby integrating new functionality without increasing overall system complexity.
Solution Approach 2:
The system creates a digital representation (token) of the loyalty rewards account that mimics the structure and behavior of traditional payment accounts. This token can be used in the digital wallet exactly like a credit or debit card account, allowing loyalty points to be used for payments without requiring fundamental changes to the existing digital wallet architecture.
Data Source
AI summary
A system for using loyalty rewards accounts in a digital wallet may generate a mapping comprising an account mapped to a wallet token number and an indicator with the mapping stored in a database on a network of servers. The indicator may indicate an account type, and the wallet token number may be transmitted to a user device. The system may also receive a transaction request including a received wallet token number and a received indicator The indicator may be matched to the received indicator to determine the received wallet token number is associated with the account type (e.g., a loyalty rewards account). The system may route the transaction request to a loyalty settlement process in response to the account type being a loyalty rewards account.