Open Loop Payment via Messaging Intermediary

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Solution Overview

Problem

Current payment systems, such as those used in Facebook Messenger and iMessage, are 'closed loop,' requiring both parties to be registered users of the same application to conduct transactions, limiting interoperability and flexibility.

Innovation Solution

An 'open loop' payment system utilizing mobile-to-mobile messaging services like RCS, allowing transactions between users with different wallet or payment applications and financial institutions, facilitated through existing payment card account networks like Mastercard, enabling payments between users with accounts from different issuers.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a closed loop payment system is used, then payment security and control are improved, but interoperability and user flexibility deteriorate

Engineering Contradiction:

Improvepayment securityVSAvoidinteroperability

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The patent introduces a messaging service as an intermediary layer between different payment systems. This mediator enables communication and transaction coordination between users of different payment applications without requiring them to share the same closed loop system, thus achieving interoperability while maintaining security through the messaging service's verification mechanisms

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If a closed loop payment system is used, then transaction control is improved, but user convenience and flexibility deteriorate

Engineering Contradiction:

Improvetransaction controlVSAvoiduser convenience

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The messaging service is designed to serve multiple functions: it facilitates payment transactions, verifies user identities, coordinates between different payment applications, and provides notification. This multi-functionality consolidates what would otherwise require multiple separate systems into a single universal service, improving user convenience while maintaining transaction control

Inventive Principle:

Principle #6Universality (Multi-functionality)

3Adaptability or versatility

If an open loop payment system is implemented, then interoperability is improved, but system complexity increases

Engineering Contradiction:

ImproveinteroperabilityVSAvoidsystem complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent segments the payment system into distinct functional components: messaging service for communication and coordination, payment applications for user interaction, and underlying payment networks for fund transfer. This segmentation allows each component to operate independently with well-defined interfaces, reducing overall system complexity while enabling open loop interoperability

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS11164173B2Systems and methods for performing payment transactions using messaging service

Publication Date: 2021.11.02 MASTERCARD INT INC

AI summary

A message is generated, with the message including a URL (uniform resource locator). The URL points to a web location. The web location is for facilitating a payment to a payment recipient. The message is transmitted to a mobile device owned by the payment recipient.