Mobile Fund Transfer Credential Resolution for Secure P2P Payments
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Solution Overview
Problem
Existing network transactions, particularly person-to-person (P2P) transactions, are cumbersome due to identification processes, device access requirements, user authentication, and certification/validation of application publishers, and involve insecure sharing of account numbers or proxies.
Innovation Solution
A system where mobile applications communicate directly with a processing network to resolve credentials, enabling contactless interactions between card devices for fund transfers, bypassing conventional certification and validation processes and allowing for secure, direct transactions between accounts.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional P2P transaction processes are used, then account identification and authentication can be achieved, but the transaction process becomes cumbersome and time-consuming
Solution Approach 1:
The system performs preliminary actions by pre-establishing trusted relationships between devices through contactless communication. The mobile device stores credentials and authentication data in advance, allowing rapid verification without requiring real-time interaction with the payment network for each transaction detail, thus reducing transaction processing time while maintaining security
Solution Approach 2:
The invention extracts the authentication and credential verification process from the traditional payment network-dependent flow. By enabling mobile devices to independently verify credentials through contactless communication and store authentication data locally, the system removes the bottleneck of real-time network validation while preserving security through cryptographic verification
2Reliability
If application publishers are certified and validated through conventional processes, then security and compliance are ensured, but the certification process becomes cumbersome
Solution Approach 1:
The system enables self-service authentication where mobile devices independently verify credentials and establish trusted relationships without requiring manual certification of application publishers. The contactless communication protocol includes built-in security mechanisms that allow devices to autonomously validate each other's credentials, eliminating the need for complex external certification processes while maintaining compliance through cryptographic verification
3Ease of operation
If account numbers or proxies are shared for transactions, then fund transfers can be enabled, but security risks increase
Solution Approach 1:
The invention uses cryptographic tokens and digital credentials as secure copies of account information. Instead of sharing actual account numbers or proxies, the system generates and exchanges encrypted credential representations through contactless communication. These cryptographic copies enable transaction authorization without exposing sensitive account data, maintaining both convenience and security
Data Source
AI summary
Systems and methods are provided for use in enhanced network transactions. One example method includes receiving, by a processing network, a request for a fund transfer from a mobile device, in lieu of a request from a financial institution, the fund transfer between a source account and a destination account, the mobile device associated with one of a sender user and a receiver user, the request including an amount of the fund transfer and a credential associated with the destination account; identifying, by the processing network, an acquiring credential of a financial institution that issued the source account; transmitting, by the processing network, an authorization request for the fund transfer to the financial institution, whereby the financial institution approves the fund transfer; and based on the approval from the financial institution, initiating the fund transfer between the source account and the destination account.