Mobile Banking Payment Acceptance via Third-Party Integration
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Solution Overview
Problem
Business bank clients face an onerous onboarding experience and lack of payment acceptance capabilities in existing merchant services, particularly in complying with PCI-DSS for credit card payments, which burdens their applications with handling sensitive data.
Innovation Solution
A mobile banking application that allows clients to accept card payments directly, processing transactions through eligible demand deposit accounts (DDAs) while remaining outside PCI-DSS compliance, using processors and memories to receive login information, set up payment options, process transactions, and update DDAs, with options for card reader devices via Bluetooth or USB connections and email notifications.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a mobile banking application implements credit card payment acceptance capabilities, then payment processing functionality is improved, but PCI-DSS compliance burden increases
Solution Approach 1:
The patent extracts the sensitive card data handling functionality from the mobile banking application by integrating a third-party payment processing service (e.g., Stripe, PayPal). The application only displays payment forms and receives tokenized data, while actual card processing occurs externally through the integrated service's secure environment, removing PCI-DSS compliance requirements from the banking app itself.
Solution Approach 2:
The patent introduces a third-party payment processing service as an intermediary between the mobile banking application and credit card networks. This mediator handles all sensitive card data transmission and processing, allowing the banking application to accept payments without directly handling card information, thus avoiding PCI-DSS compliance obligations.
2Ease of operation
If a mobile banking application accepts card payments directly, then payment acceptance convenience is improved, but security compliance requirements worsen
Solution Approach 1:
The patent removes the security compliance burden by extracting card data handling from the mobile banking application. The app provides a convenient payment interface but relies on integrated third-party services to process and secure card transactions, maintaining ease of use while achieving security compliance through the third party's established infrastructure.
Solution Approach 2:
The patent uses tokenization to create simplified representations of card data. Instead of handling actual card numbers, the system uses tokenized versions that preserve payment functionality while eliminating security risks, allowing convenient payment acceptance without compromising security compliance.
3Adaptability or versatility
If existing merchant services are used by business bank clients, then payment acceptance is enabled, but onboarding complexity increases
Solution Approach 1:
The patent merges merchant payment acceptance capabilities directly into the mobile banking application through third-party service integration. Business bank clients can accept payments using their existing banking credentials without separate merchant account setup, combining banking and merchant services into a unified onboarding process that reduces complexity.
Solution Approach 2:
The patent makes the mobile banking application multi-functional by integrating payment acceptance capabilities alongside traditional banking functions. Clients use a single application for both banking operations and merchant payment acceptance, eliminating the need for separate merchant service platforms and simplifying the overall onboarding experience.
Data Source
AI summary
A system and a method for accepting a payment on an application is provided. The method is implemented by a processor. The processor receives login information from a client to activate a banking application; selects quick accept entry points associated with the client's business banking demand deposit account (DDA) based on determining that the client is eligible for the quick accept entry points in response to the login information; sets up a payment receiving option for receiving a payment via the banking application; causes the banking application to receive transaction amount data corresponding to a transaction between the client and a customer; causes the banking application to process the transaction amount data; and automatically updates the DDA to reflect receipt of the transaction amount data.