Mobile Payment System Using Device Pairing for Secure Transactions
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing mobile card processing systems are often expensive, difficult to install, and do not significantly enhance the user experience, particularly in environments like taxis where secure and efficient payment transactions are needed.
Innovation Solution
The system allows for secure communication between multiple mobile devices over a wireless network, enabling the division of card transaction functions between devices. This includes establishing secure communication between a driver's device and a passenger's device in a taxi, allowing for card information to be securely processed and displayed, and enabling personalized experiences such as targeted advertising.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If mobile card readers use WiFi or cellular technology to communicate with the credit card processor, then wireless communication capability is improved, but device complexity and installation difficulty increase
Solution Approach 1:
The patent introduces a mobile device (smartphone or tablet) as an intermediary between the cardholder and the payment system. The mobile device contains a virtual card application that stores card information and communicates with the payment terminal, eliminating the need for complex hardware card readers in vehicles. The mobile device handles wireless communication (WiFi or cellular) to transmit transaction data to the payment processor, while the vehicle's payment terminal only needs basic card reading capability.
2Device complexity
If a single mobile device performs all card transaction functions, then device simplicity is improved, but functionality and user experience are limited
Solution Approach 1:
The patent divides the card transaction system into multiple components with specific functions: (1) a card reading device in the vehicle that captures card data, (2) a mobile device that stores virtual card information and handles communication, and (3) a payment terminal that processes transactions. This segmentation allows each component to be simple while the overall system provides comprehensive functionality including contactless payments, transaction history, and personalized content delivery.
3Adaptability or versatility
If card information is transmitted over wireless networks, then communication flexibility is improved, but security risks increase
Solution Approach 1:
The patent replaces physical card swiping (mechanical contact) with wireless communication methods. The mobile device transmits card information via encrypted wireless signals (WiFi or cellular networks) to the payment processor, eliminating the need for physical card insertion or magnetic stripe swiping. This substitution maintains communication flexibility while enabling modern security protocols including end-to-end encryption, tokenization, and secure element storage in the mobile device.
Data Source
AI summary
Methods and systems include pairing a first device to a second device via a paired connection such that the first device is configured to send and receive encrypted data with the second device. An application may be initiated based on the pairing and a status indicator may be displayed. A request may be received to provide encrypted card data for a transaction and a first update to the status indicator may be displayed. The encrypted card data may be sent to the second device responsive to the request and a second update to the status indicator may be displayed based at least in part on sending the encrypted card data. Confirmation may be received that the transaction has been completed, and a third update to the status indicator May be displayed based at least in part on receiving the confirmation that the transaction has been completed.