Mobile Device Payment System Eliminating Third-Party Fees
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Solution Overview
Problem
Current mobile device payment systems are cumbersome, costly due to third-party processing fees, and insecure, as they require exposure of sensitive information during transactions.
Innovation Solution
A mobile device payment system that allows users to make payments directly through a mobile device without third-party platforms, using a mobile device manufacturer's financing, with embedded permanent identifiers for secure and fee-free transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If third-party credit card or debit card companies are used for payment processing, then payment transactions can be completed, but processing fees averaging 2% or more are extracted increasing costs to consumers
Solution Approach 1:
The patent extracts and eliminates the third-party payment processor from the transaction system. By implementing a direct payment mechanism where the mobile device communicates directly with the merchant system, the patent removes the intermediary that charges processing fees, thereby eliminating the 2% or more fee structure while maintaining transaction completion capability
Solution Approach 2:
The patent introduces a new intermediary - the mobile device manufacturer's payment system - that replaces traditional credit card companies. This new mediator provides payment processing infrastructure through the mobile device itself, eliminating reliance on external card networks and their associated fees
2Productivity
If sensitive personal and financial information is exposed during purchases, then transactions can be processed, but security risks increase and financial liability threats arise
Solution Approach 1:
The patent extracts sensitive information from the transaction process. By using a payment system that does not require exposure of personal identifiers, card numbers, or passwords during the purchase act, the patent removes the security vulnerability while maintaining transaction processing capability
Solution Approach 2:
The patent performs security verification in advance through device-level authentication and encrypted communication channels established before the transaction. The mobile device's secure environment validates payment authorization prior to transmission, eliminating the need to expose sensitive data during the actual purchase
3Loss of energy
If a mobile device payment system without third-party platforms is implemented, then processing fees are eliminated and security is improved, but the system complexity increases
Solution Approach 1:
The patent implements a universal payment system where the mobile device itself serves multiple functions - it acts as both the user interface and the payment processing terminal. The mobile device contains integrated payment credentials and can communicate directly with merchant systems, eliminating the need for separate third-party processing infrastructure
Solution Approach 2:
The mobile device payment system is self-contained and self-sufficient. The device holds its own payment credentials, performs its own authentication, and communicates directly with merchants without requiring external card network infrastructure. The system serves itself by eliminating dependency on third-party platforms
Data Source
AI summary
A mobile device payment system and method, the method for a mobile device user to purchase goods/services from merchants with financing by a mobile device manufacturer including: providing a mobile device; establishing a user account; establishing merchant accounts; transforming the merchant accounts into a universal merchant account data set; providing the universal merchant account data set to the mobile device user; storing the universal merchant account data set; requesting the mobile device manufacturer to load consumer credit; loading the credit amount; identifying goods/services for purchase; determining a total price for the identified goods/services and a merchant identifier associated with the selected merchant; actuating a purchase button; retrieving merchant bank deposit instructions; retrieving purchase credit; and routing the retrieved credit to the selected merchant in accordance with the retrieved merchant credit deposit instructions.