Mobile EBT Payment System with Consumer Detection and Virtual Account Generation

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Solution Overview

Problem

Retailers face challenges in interacting with consumers effectively and gathering data on consumer behavior to optimize marketing efforts, as traditional methods are either costly or ineffective in providing high interaction levels.

Innovation Solution

A system that uses a mobile device to detect consumers, verify identities, and generate virtual payment account numbers for secure, mobile electronic payment processing, integrating with EBT systems to track purchases and analyze consumer behavior, allowing for targeted marketing and advertising.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Area of stationary object

If bulk ads/offers are sent to consumers, then advertising reach is improved, but interaction effectiveness deteriorates

Engineering Contradiction:

Improveadvertising reachVSAvoidinteraction effectiveness

Core Design Contradiction:

Area of stationary objectVSLoss of information

Solution Approach 1:

The system implements feedback mechanisms by tracking consumer responses to offers and advertisements through the mobile payment application. Consumer behavior data, purchase patterns, and offer redemption information are collected and fed back to advertisers, enabling them to refine their marketing strategies and improve interaction effectiveness while maintaining broad reach.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The mobile payment application serves as an intermediary between advertisers and consumers. It delivers targeted advertisements and offers to consumers' devices and simultaneously collects detailed interaction data, enabling effective communication at scale without requiring direct human-to-human interaction.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Loss of information

If numerous sales people are hired, then consumer interaction level is improved, but operational cost deteriorates

Engineering Contradiction:

Improveconsumer interaction levelVSAvoidoperational cost

Core Design Contradiction:

Loss of informationVSLoss of energy

Solution Approach 1:

The system enables self-service interaction through the mobile payment application, which automatically delivers personalized offers, tracks consumer behavior, and provides purchase recommendations without requiring human sales personnel. The automated system maintains high interaction levels while eliminating the need for extensive sales staff.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the mechanical system of human salespeople with an automated digital system. The mobile application uses algorithms and data analytics to provide personalized consumer interaction, substituting human labor with automated technology that achieves similar or superior interaction effectiveness at lower cost.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Measurement precision

If detailed consumer behavior data is collected, then marketing targeting precision is improved, but system complexity deteriorates

Engineering Contradiction:

Improvemarketing targeting precisionVSAvoidsystem complexity

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The mobile payment application serves multiple functions simultaneously: it processes payments, delivers advertisements, collects consumer behavior data, provides purchase recommendations, and enables offer redemption. By consolidating these diverse functions into a single platform, the system achieves high marketing targeting precision without proportionally increasing complexity.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system merges data collection, analysis, and marketing delivery functions into an integrated ecosystem. Consumer behavior data collected during normal payment transactions is combined with advertisement delivery and offer management, creating a unified system that achieves precise marketing targeting while managing complexity through integration rather than separate components.

Inventive Principle:

Principle #5Merging (Combining)

Data Source

PatentUS11144905B1Payment processing using electronic benefit transfer (EBT) system

Publication Date: 2021.10.12 MODOPAYMENTS LLC

AI summary

Systems and methods are described for incorporating electronic benefit transfer (EBT) systems into a secure, mobile, and electronic payment processing system. Existing EBT systems capture data regarding a purchase. This record keeping functionality can be harnessed to provide retailers and marketers with data regarding marketing efforts, coupon use, and more. A mobile device can be used to interact with a presence detection system. Coupons or payment information can be received at a mobile device, and payments can be carried out between a mobile device and a points of sale (POS).