Mobile Device Barcode Payment System
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Solution Overview
Problem
Current payment methods in retail environments, such as credit cards, debit cards, checks, and cash, are cumbersome and costly, especially for small merchants and customers who frequently visit multiple outlets, as they require multiple cards and incur transaction fees, leading to dissatisfaction.
Innovation Solution
A computer-implemented method and system using mobile devices to facilitate payments through barcodes that encode customer payment information, allowing customers to generate and display barcodes on their mobile devices, which are scanned at checkout counters to process transactions, retrieve customer records, and transfer funds between merchants and customers, enabling discounts and other retail transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional payment methods (credit cards, debit cards, checks, cash) are used, then payment transactions can be completed, but transaction fees accumulate and multiple cards are required for different merchants
Solution Approach 1:
The patent implements a universal payment system where a single mobile device can function as multiple payment cards by storing and displaying different merchant-specific barcodes. The mobile device consolidates the functionality of numerous merchant-specific cards into one device, allowing the customer to pay at any merchant by displaying the appropriate barcode generated on their mobile device.
Solution Approach 2:
The patent creates digital copies of payment information in the form of barcodes that can be displayed on a mobile device screen. Instead of requiring physical payment cards, the system uses visual code representations of payment credentials that can be scanned and processed electronically, replacing physical cards with their digital counterparts.
2Productivity
If traditional payment methods are used, then transactions can be processed, but processing time is extended due to manual handling and verification
Solution Approach 1:
The patent replaces manual payment processing mechanisms with automated optical scanning and electronic verification systems. Instead of physically handling cash, checks, or cards, the system uses barcode scanning technology to automatically capture payment information, retrieve customer records from databases, and process transactions electronically, eliminating manual verification steps.
Solution Approach 2:
The system performs preliminary actions by pre-storing customer payment information and merchant account details in databases before the actual transaction occurs. When a barcode is scanned, the system has already prepared the customer records and payment terms, allowing for rapid retrieval and processing without delays for manual verification or calculation during the transaction.
3Loss of energy
If merchant-specific account systems are implemented, then cost savings can be achieved, but system complexity and operational difficulty increase
Solution Approach 1:
The patent introduces a centralized payment processing server as an intermediary that manages all merchant-specific account systems. This server acts as a mediator between customers and multiple merchants, handling the complexity of different merchant accounts, pricing structures, and payment terms in one centralized location. Customers interact only with their mobile device and the general payment system, while the intermediary server manages the complex merchant-specific details in the background.
Data Source
AI summary
Provided are computer implemented methods and systems for facilitating mobile device payments using barcodes displayed on mobile devices and scanned by merchants at checkout counters. When a customer is ready to tender a payment to a merchant, instead of using a credit card, cash, or check, the customer activates an application on his mobile device. The mobile device includes or obtains information about the payment system of this merchant. Furthermore, the mobile device includes or obtains information about the customer/mobile device user and then uses these two pieces of information to generate and display a barcode that encodes customer payment information specific to this merchant. The barcode is scanned at the checkout counter and processed to retrieve customer records from a database of the payment processing system. These records are then used to transfer funds between the merchant and customer, obtain discounts, and/or perform other retail transactions.