Mobile Money Transfer via Text Messaging

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Solution Overview

Problem

Existing methods for person-to-person money transfers are inconvenient, often requiring cash or check-based transactions, and electronic services like PayPal and MobiPay charge fees and delay fund availability due to reliance on ACH networks.

Innovation Solution

A system allowing person-to-person money transfers via handheld mobile devices using text messaging or email, where a payer sends a message with the payee's phone number and amount to their financial institution, which sends a payment ID and hyperlink to the payee, enabling real-time transfers through networks like Fedwire, eliminating intermediaries and transaction fees.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If electronic brokerage services like PayPal and MobiPay are used for person-to-person money transfers, then the convenience of electronic transfers is improved, but transaction fees are charged and fund availability is delayed due to reliance on ACH networks

Engineering Contradiction:

Improveconvenience of electronic transfersVSAvoidfund availability delay

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The patent uses mobile devices as intermediaries to enable direct peer-to-peer money transfers between bank accounts, eliminating the need for traditional electronic brokerage services. The mobile device sends text messages containing payment information, and the financial institution processes the transfer directly through the network, bypassing ACH delays and brokerage fees.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent extracts the money transfer function from traditional electronic brokerage services and implements it directly through mobile devices and financial institution networks. This removes the intermediary brokerage layer that causes fees and delays, allowing direct account-to-account transfers.

Inventive Principle:

Principle #2Taking out (Extraction)

2Ease of operation

If electronic brokerage services are used for person-to-person money transfers, then the convenience of electronic transfers is improved, but transaction fees are charged to the user

Engineering Contradiction:

Improveconvenience of electronic transfersVSAvoidtransaction fee

Core Design Contradiction:

Ease of operationVSLoss of energy

Solution Approach 1:

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

Inventive Principle:

Principle #2Taking out (Extraction)

3Loss of energy

If check-based transactions are used for person-to-person money transfers, then no electronic fees are charged, but the process requires manual deposit and checkbook management

Engineering Contradiction:

Improvetransaction feeVSAvoidconvenience of transfer process

Core Design Contradiction:

Loss of energyVSEase of operation

Solution Approach 1:

The patent replaces the mechanical check-writing and manual deposit process with an electronic text message system. Instead of physically writing checks and manually depositing them, users send text messages from mobile devices, and the financial institution automatically processes the transfers electronically.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables users to independently initiate money transfers through text messages without requiring manual checkbook management or visits to bank branches for deposits. The financial institution's system automatically handles the transfer process based on the text message instructions.

Inventive Principle:

Principle #25Self-service

4Loss of energy

If cash payments are used for person-to-person money transfers, then no transaction fees are charged, but carrying large sums of cash is inconvenient and potentially unsafe

Engineering Contradiction:

Improvetransaction feeVSAvoidsafety risk of carrying cash

Core Design Contradiction:

Loss of energyVSObject-affected harmful factors

Solution Approach 1:

The patent uses mobile devices as intermediaries to enable direct peer-to-peer money transfers between bank accounts, eliminating the need to physically carry cash. The mobile device sends text messages containing payment information, and the financial institution processes the transfer securely through the network.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the physical cash handling system with an electronic digital transfer system. Instead of physically moving and securing cash, the system uses electronic messages and digital network transfers, eliminating the safety risks associated with carrying large amounts of cash.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS8751379B1Mobile money transfers

Publication Date: 2014.06.10 UNITED SERVICES AUTOMOBILE ASSOCIATION (USAA)

AI summary

Methods and systems are disclosed for conducting person-to-person money transfers over a handheld mobile device using any suitable text messaging service. In one implementation, the money transfer may involve a payer providing a payee's phone number and the amount to be transferred via a text message to the payer's financial institution or via the financial institution's Web site. The financial institution may then send a text message to the phone number of the payee that includes a payment ID, a hyperlink to the Web site of the payer's financial institution, and the payer's name. The payee may thereafter access the financial institution's Web site using the payment ID and enter his/her bank and account information. The financial institution may then transfer the specified amount from the payer's account to the payee's account and send a confirmation message to the payer that the transfer has been completed.