Cash Transaction Machine With Mobile Authentication for Cardless Withdrawal
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Solution Overview
Problem
Conventional cash withdrawal methods, such as ATMs and cashback, impose restrictions and inconveniences, including transaction fees, limited availability, and the need for physical cards, which are not suitable for small transactions or alternative payment preferences.
Innovation Solution
A cash transaction machine (CTM) technology that allows users to withdraw cash using a mobile payment application, identifying nearby CTMs, receiving a transaction code, and obtaining cash without a physical card, enabling withdrawals from various types of CTMs with reduced restrictions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If ATM is used for cash withdrawal, then cash can be obtained, but transaction fees are charged and physical card is required
Solution Approach 1:
The patent applies universality by enabling merchants to function as cash dispensing machines. The merchant terminal system can both process sales transactions and dispense cash, eliminating the need for dedicated ATMs and reducing transaction fees for cash withdrawals.
Solution Approach 2:
The patent introduces a cash management system as an intermediary between the user's financial institution and the merchant terminal. This mediator facilitates cash dispensing through the merchant terminal while managing the financial transactions and reducing fees compared to traditional ATM withdrawals.
2Ease of operation
If ATM is used for cash withdrawal, then cash can be obtained, but physical card must be carried
Solution Approach 1:
The patent extracts the cash dispensing function from the physical card requirement. Users can initiate cash withdrawals through mobile devices or online systems, and the cash is dispensed at merchant terminals without needing to physically present or carry a bank card.
Solution Approach 2:
The patent replaces the mechanical card-swiping or card-insertion system with electronic/digital authentication methods. Users can authenticate for cash withdrawals through mobile apps, online accounts, or other electronic verification methods, eliminating the need for physical cards.
3Ease of operation
If cashback is used for obtaining cash, then cash can be obtained, but purchase must be made at merchant
Solution Approach 1:
The patent segments the cash dispensing function from the sales transaction function. The system allows users to separately initiate cash withdrawals at merchant terminals without being required to make a purchase, dividing the previously coupled operations into independent functions.
Solution Approach 2:
The patent makes the merchant terminal system dynamic by enabling it to perform multiple functions: processing sales transactions, dispensing cash for purchases, and dispensing cash without purchases. This dynamic capability allows the terminal to adapt to different user needs based on the situation.
Data Source
AI summary
Introduced is a technology for withdrawing cash from a cash transaction machine (CTM) by use of a mobile payment application installed on a mobile device of a consumer user (“the CTM technology”). Briefly described, the CTM technology enables a consumer user to identify one or more CTMs from which to withdraw cash by using his/her mobile device (e.g., a smartphone) as a “virtual” card. A particular CTM can be a conventional ATM or a POS system at a merchant's place of business. The user can use a mobile payment application installed on the user's mobile device to identify any nearby CTMs, request a withdrawal amount from a particular CTM from the identified nearby CTMs, receive a transaction code specific to that particular CTM, and physically obtain, or collect, the cash representative of the withdrawal amount at that particular CTM using the transaction code.