Merchant Server User Acquisition via Carrier Billing Segmentation
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Solution Overview
Problem
The existing process of online registration for repeat payments, which requires users to enter credit card information, is cumbersome and often results in abandoned registrations due to expired cards or incorrect information, leading to potential customers being lost to merchants.
Innovation Solution
A method and system that allows users to initiate repeat payments through a merchant server and mobile billing operator server using a phone number and PIN, with default billing cycles executed via carrier billing, followed by registration of credit card details for modified billing cycles, eliminating the need for upfront credit card information entry.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If credit card information is required during user registration, then payment security is improved, but registration completion rate deteriorates due to cumbersome process
Solution Approach 1:
The patent segments the billing process into two distinct phases: initial carrier billing for immediate repeat payments, and subsequent credit card registration for long-term billing. This segmentation allows users to complete registration quickly using carrier billing while maintaining security through later credit card verification, thus resolving the contradiction between payment security and registration completion rate.
Solution Approach 2:
The patent implements preliminary action by establishing carrier billing as a temporary payment mechanism before credit card registration. The system pre-configures the billing account with carrier billing capabilities, allowing immediate repeat payments to be processed while the user completes credit card registration at a later time. This preliminary setup eliminates the need for immediate credit card entry during registration.
2Productivity
If carrier billing is used for repeat payments, then user acquisition is improved, but billing cost deteriorates due to high carrier fees
Solution Approach 1:
The system uses carrier billing as a preliminary payment method to quickly acquire users and establish repeat payment relationships. Once users are acquired and their billing patterns are established, the system transitions them to credit card billing, which has lower processing fees. This preliminary use of carrier billing sacrifices some cost efficiency to achieve rapid user acquisition.
Solution Approach 2:
The patent implements a dynamic billing strategy where the payment method changes over time. Initially, carrier billing is used for immediate repeat payments to facilitate quick user acquisition. As users progress through the customer lifecycle and complete credit card registration, the system dynamically switches to credit card billing for modified billing cycles, thereby reducing long-term billing costs while maintaining high user acquisition rates.
3Ease of operation
If credit card registration is delayed until after initial billing, then ease of registration is improved, but payment risk deteriorates
Solution Approach 1:
The patent applies beforehand cushioning by implementing a multi-layer payment verification system. Carrier billing serves as the first layer, providing immediate payment assurance for repeat purchases. Credit card registration serves as a second layer, providing long-term payment security. This layered approach cushions against payment risk even though credit card information is not immediately collected during initial registration.
Data Source
AI summary
A repeat payment computer system includes a merchant server and mobile billing operator server that are programmed for user acquisition through carrier billing and subsequent conversion to credit card billing. An advantage of the process is that the user does not have to enter credit card information for the default billing cycles to occur. The user only enters a phone number and password. Fewer barriers are provided for the user to become a regular repeat customer of the merchant server. The fees associated with mobile billing according to the default billing cycles have to be paid by the merchant server and may be too high in the long run. The merchant server can avoid the high fees associated with carrier billing by switching the user to billing according to the credit card information provided. The user is typically switched after the user has already become a regular customer.