Mobile Payment Code System for Reducing Transaction Fees

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Solution Overview

Problem

Current payment methods in retail environments, such as cash, checks, credit/debit cards, and traditional mobile payments, are cumbersome and costly, leading to dissatisfaction and high transaction fees, especially for frequent customers who need to manage multiple store-specific accounts.

Innovation Solution

The system facilitates mobile device payments using unique codes that encode customer payment information, allowing customers to receive cashback and discounts through a cashback business model, eliminating the need for multiple accounts and reducing processing fees by using mobile devices to scan barcodes and transmit payment information wirelessly.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If traditional payment methods (cash, checks, credit/debit cards) are used, then transactions can be completed, but processing fees are high and transaction speed is slow

Engineering Contradiction:

Improvetransaction speedVSAvoidprocessing fees

Core Design Contradiction:

ProductivityVSLoss of energy

Solution Approach 1:

The patent replaces traditional mechanical payment systems (cash handling, card swiping) with a mobile-based digital payment system using barcodes and wireless communication. The mobile device captures product barcodes, generates payment codes, and transmits payment information wirelessly, eliminating the need for physical cash handling and card processing infrastructure.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent creates digital copies of payment information in the form of barcodes and codes that can be transmitted wirelessly. Instead of physically transferring cash or swiping cards, the system uses visual codes that contain encoded payment data, which can be rapidly captured and processed by the mobile device.

Inventive Principle:

Principle #26Copying

2Adaptability or versatility

If multiple store-specific accounts are used to manage payments at different retailers, then payment options are available, but system complexity increases and convenience decreases

Engineering Contradiction:

Improvepayment optionsVSAvoidaccount management complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent creates a universal payment system where a single mobile device can be used at multiple different retail stores. The mobile device functions as both the payment method and the account management system, replacing the need for multiple store-specific cards or accounts. The system adapts to different merchants through wireless communication and code recognition rather than requiring different physical payment instruments.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent merges multiple functions into a single mobile device: it combines product identification (barcode scanning), payment information storage, transaction processing, and account management into one device. This consolidation eliminates the need to manage separate physical cards or accounts for different stores, as all functions are integrated in the mobile application.

Inventive Principle:

Principle #5Merging (Combining)

3Productivity

If manual payment processing is used, then transactions can be completed, but time consumption increases and customer satisfaction decreases

Engineering Contradiction:

Improvetransaction throughputVSAvoidtransaction time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent replaces manual payment processing with automated optical recognition and wireless communication. The mobile device automatically captures barcodes, decodes payment information, and transmits transaction data without requiring manual data entry or physical handling of payment instruments, significantly reducing transaction time.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The mobile device performs self-service functions by automatically scanning product barcodes, retrieving payment information, and completing transactions without requiring manual intervention for each step. The system autonomously handles the payment process from product identification to transaction completion.

Inventive Principle:

Principle #25Self-service

Data Source

PatentUS20170221087A1Systems and methods for providing compensation, rebate, cashback, and reward for using mobile and wearable payment services, digital currency, NFC touch payments, mobile digital card barcode payments, and multimedia haptic capture buying

Publication Date: 2017.08.03 XING ZHOU TIAN

AI summary

Provided are methods and systems for facilitating mobile device payments using codes and cashback business model. Upon installation of an application on a mobile device, a customer may specify his payment information, which may include data on a credit/debit card or a bank checking account. Once the payment information has been specified, the customer may receive a unique code encoding his payment information. The customer may then start scanning product barcodes with his mobile device. To make payment for products, the unique code displayed on a screen of the customer mobile device may be scanned by a payment receiver mobile device. The payment receiver mobile device may further display customer records stored in a database of a payment processing system. Based on the customer records, the customer may be provided with various cashback opportunities, as well as credits and discounts.