Mobile Commerce Transaction Routing via Perishable Codes
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Solution Overview
Problem
Larger merchants with multiple stores are reluctant to install additional software in their point-of-sale systems to support direct communication with mobile-commerce platforms, limiting consumer purchasing capabilities through these platforms.
Innovation Solution
A method and system that use a one-time-use perishable transaction code prefixed with an Issuer Identification Number (IIN) to enable transactions to be routed to a mobile-commerce platform via existing payment networks, eliminating the need for direct communication between the merchant's POS system and the mobile-commerce platform.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants install additional software in their POS systems to support direct communication with mobile-commerce platforms, then transaction routing capability is improved, but device complexity and installation burden increase
Solution Approach 1:
The patent introduces an intermediary component (mobile device with transaction code generator) that mediates between the merchant's existing POS system and the mobile-commerce platform. The POS system only needs to accept standard transaction codes, while the mobile device handles the complex routing logic by generating unique transaction codes that encode both payment information and platform routing data, thus eliminating the need for complex POS software modifications
Solution Approach 2:
The transaction code generated by the mobile device serves multiple functions simultaneously: it acts as a payment authorization code, contains routing information to identify the mobile-commerce platform, and functions as a communication protocol between the POS system and the platform. This multi-functionality eliminates the need for separate software components for each function, reducing overall system complexity
2Device complexity
If merchants do not install additional software in their POS systems, then device complexity is reduced, but transaction routing capability deteriorates
Solution Approach 1:
Instead of making the POS system intelligent and capable of direct communication with multiple platforms, the patent inverts the approach by making the mobile device intelligent. The mobile device generates transaction codes that inherently contain routing information, allowing the simple POS system to route transactions to the correct platform through the encoded information in the transaction code itself
Data Source
AI summary
A method and system for routing transactions to a mobile-commerce platform is described. One illustrative embodiment receives, via a network, a purchase request from a user's mobile communication device; authenticates the user to the mobile-commerce platform; generates a one-time-use perishable transaction code associated with the purchase request; prefixes to the transaction code an Issuer Identification Number (IIN) corresponding to the mobile-commerce platform to form a combined number; returns the combined number to the user's mobile communication device via the network to enable the user to provide the combined number to a merchant's point-of-sale system in connection with a transaction corresponding to the purchase request; and receives, via a payment network in communication with the merchant's point-of-sale system, the transaction code and transaction details associated with the transaction, the IIN informing the payment network to route the one-time-use perishable transaction code and the transaction details to the mobile-commerce platform.