Mobile Funds Transfer via Wireless Payment Application
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Solution Overview
Problem
Existing financial transaction systems, such as cards and fob-type devices, are inconvenient and prone to loss or theft, leading to potential fraudulent transactions and monetary losses. Additionally, non-traditional merchants often cannot accept card payments without pre-established agreements with issuers, limiting their ability to conduct business.
Innovation Solution
A system and method for enabling person-to-person funds transfers via wireless communications using mobile devices, allowing funds to be transferred directly from one financial transaction account to another without the need for cash, checks, cards, or fob-type devices, and without requiring an issuer-merchant agreement.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If physical payment instruments (cards, fob devices) are used for fund transfers, then financial transactions can be conducted, but the risk of loss or theft increases and convenience decreases
Solution Approach 1:
The patent extracts the essential function of fund transfer from physical payment instruments (cards, fob devices) and implements it through wireless communication between mobile devices. The payment application on mobile devices enables fund transfers without requiring physical cards or fob devices, thereby eliminating the risk of their loss or theft while maintaining transaction convenience.
Solution Approach 2:
The patent replaces the mechanical/physical payment instrument system with an electronic wireless communication system. Instead of using physical cards or fob devices that require contact with card readers, the system uses wireless data transmission between mobile devices to initiate and complete fund transfers, eliminating the need for physical intermediaries.
2Reliability
If specialized equipment and issuer-merchant agreements are required for card payments, then secure transactions can be processed, but adaptability to non-traditional merchants is reduced
Solution Approach 1:
The patent creates a universal payment system where mobile devices with payment applications can initiate fund transfers directly between financial accounts without requiring merchant-specific equipment or pre-established agreements. The system works with any financial institution that supports automated clearing house transfers, making it adaptable to non-traditional merchants such as individuals, informal sellers, and entities without formal merchant status.
Solution Approach 2:
The patent introduces a payment application as an intermediary that facilitates fund transfers between individuals and merchants without requiring traditional merchant processing equipment. The mobile device's payment application acts as a universal intermediary that can initiate transfers to any financial account, eliminating the need for specialized merchant-side equipment or issuer-merchant agreements.
Data Source
AI summary
A funds-transfer system enables a buyer to transfer funds to a seller via a mobile telephone. The system receives a payment request transmitted from a mobile telephone of the buyer. The payment request is for a transfer of funds from a financial account held by the buyer to a financial account held by the seller, and the payment request is transmitted from a payment application stored in the buyer's mobile telephone. The payment request identifies a purchase amount to be transferred, and information identifying the financial account held by the buyer. The system charges the purchase amount to the financial account held by the buyer and transfers the purchase amount to a financial account held by the seller.