Mobile Commerce Payment Intermediary System
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Solution Overview
Problem
Mobile commerce has not been adopted on a large scale due to the requirement of owning a mobile communication device and having airtime, which poses a barrier for individuals hesitant to incur associated expenditures.
Innovation Solution
A system and method that allows users to conduct financial transactions over a communication network without debiting their financial or airtime accounts for access, using a database to store user data, a purchase request infrastructure, and a payment service provider system to automatically process transactions, allocate service fees, and credit merchant accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If users must own a mobile communication device and have airtime to conduct financial transactions, then the transaction system can be implemented, but the accessibility and adoption rate are limited due to the barrier of owning a device and having airtime
Solution Approach 1:
The patent introduces an intermediary system comprising a service provider server and payment service provider system that mediates between the user's mobile device and the merchant. This intermediary handles the complex tasks of authentication, payment processing, and account management, allowing users to conduct transactions without needing to understand or manage airtime accounts or financial account debiting processes themselves
Solution Approach 2:
The system enables self-service through automated authentication and payment processing. The service provider server automatically authenticates users based on their mobile device identifiers, and the payment service provider system automatically debits financial accounts and allocates service fees without requiring manual intervention from users, thereby simplifying the transaction process
2Productivity
If the system automatically debits financial accounts and allocates service fees, then the payment processing is streamlined, but the system complexity increases with multiple accounts and automated processes
Solution Approach 1:
The patent segments the complex payment processing system into distinct functional modules: the service provider server handles authentication and communication, the payment service provider system handles financial account debiting and service fee allocation, and the database stores user data. This segmentation allows each component to perform its specific function independently, improving processing efficiency while managing complexity through modular architecture
Solution Approach 2:
The service provider server performs multiple functions including authentication, transaction coordination, and communication with both users and merchants. The payment service provider system simultaneously handles financial account debiting, service fee allocation, and merchant crediting. This multi-functionality reduces the number of separate systems needed, streamlining the overall process
Data Source
AI summary
A method and system to conduct financial transactions over a communication network is provided. Data associated with a mobile communication device user is received and stored, and a user mobile airtime account is allocated to the user. A purchase request is received from the user via a mobile communication device, the purchase request being for a purchase from a merchant for a purchase amount. The communication network provides the user access to the network to make the purchase request without debiting a financial account of the user or the user mobile airtime account for the access to the communication network. A payment service provider now automatically debits the financial account of the user with the purchase amount, automatically allocates a service fee which is associated with the purchase amount to the mobile service provider and credits an account of the mobile service provider with the service fee. The payment service provider also automatically credits an account of the merchant with at least a portion of a remainder of the purchase amount.