Mobile Payment Application Server Mediator

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Solution Overview

Problem

Existing mobile payment systems require physical contact with POS terminals and rely on physical payment instruments like cards, which are prone to damage and health risks, and do not efficiently integrate with existing POS terminals without hardware upgrades, leading to insecure and unclear transaction records.

Innovation Solution

A system and method that enables secure mobile payments by using a mobile device running a payment application to interact with an application server, processing user payment information and acquiring authorization through an EFT system, allowing users to check-in, verify transactions, and confirm payments without physical contact or the need for physical payment instruments, and providing reliable transaction records.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If NFC technology is used for mobile payments, then transaction security and convenience are improved, but hardware compatibility requirements increase and merchants must upgrade terminals

Engineering Contradiction:

Improvetransaction securityVSAvoidhardware compatibility requirements

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces an application server as an intermediary between the mobile device and POS terminal. The server receives transaction information from the POS, communicates with the mobile device via wireless network, and processes payment authorization. This mediator eliminates the need for direct NFC communication between device and terminal, allowing legacy POS terminals to work with mobile payment applications without hardware upgrades.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the physical NFC contactless communication mechanism with wireless network communication. Instead of requiring NFC chips and close physical proximity between devices, the system uses internet-based communication to transmit transaction information and authorization data, thereby eliminating hardware compatibility constraints while maintaining security.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Adaptability or versatility

If physical payment instruments like cards are used, then compatibility with existing POS terminals is maintained, but risk of damage, loss, and health risks from physical contact increases

Engineering Contradiction:

Improvecompatibility with existing POS terminalsVSAvoidhealth risks and physical damage

Core Design Contradiction:

Adaptability or versatilityVSObject-affected harmful factors

Solution Approach 1:

The patent creates a digital representation of the payment instrument within the mobile application. The application stores payment account information and authorization data electronically, replacing physical cards. The mobile device presents this digital payment credential to the application server, which then authorizes the transaction at the POS terminal, eliminating the need for physical card handling while maintaining compatibility with existing terminals.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent extracts the essential payment authorization function from the physical card and relocates it to the mobile application. The card's magnetic strip or chip data is replaced by electronically stored account information and digital signatures in the application, which can be transmitted wirelessly to authorize transactions without physical contact.

Inventive Principle:

Principle #2Taking out (Extraction)

3Ease of manufacture

If manual entry of merchant information is required, then hardware upgrades are avoided, but transaction accuracy and record clarity deteriorate

Engineering Contradiction:

Improveno hardware upgrades requiredVSAvoidtransaction accuracy

Core Design Contradiction:

Ease of manufactureVSMeasurement precision

Solution Approach 1:

The mobile application automatically captures merchant information from the POS terminal through wireless communication. When the POS terminal sends a transaction request to the application server, the server extracts and stores the merchant identifier, location, and other relevant data. This automatic data capture eliminates manual entry errors while maintaining compatibility with existing terminals that can transmit their identification information electronically.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS11514450B2System and method for mobile payments

Publication Date: 2022.11.29 EVERTEC GROUP LLC

AI summary

A system and method for making payments using an application installed on a mobile device, which has access to at least one source of funds. Said application interacts with a Point of Sale (POS) terminal through an application server. The user “checks-in” from the mobile application into said application server and the POS terminal sends a verification request to said application server, where the user confirms payment for a purchase. An Electronic Funds Transfer processing and switching system requests authorization from an issuer for completing said payment and provides confirmation of the transaction being authorized to the application server. The application server then notifies the mobile application and the POS terminal that the transaction has been completed in order to update the transaction records. A receipt of the transaction details may be printed or sent by email to the user.