Mobile Payment Intermediary for Ordinary POS Terminals
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing mobile payment methods require specialized hardware and proximity to a wireless point of sale terminal, limiting their use to in-store transactions and restricting distance due to short-range transmission protocols.
Innovation Solution
A method utilizing a mobile wireless device to make payments over ordinary point of sale terminals via telephone or internet networks, eliminating the need for specialized hardware and allowing transactions over long distances without modifying existing terminals.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If contactless payment methods using NFC, RFID, or short-range wireless protocols are used, then payment transmission speed and convenience are improved, but transmission distance is limited to short ranges (10 inches to 30 meters)
Solution Approach 1:
The patent introduces a mobile device as an intermediary between the payment instrument and the POS terminal. The mobile device receives payment information from the payment instrument via short-range wireless communication, then transmits this information to the POS terminal using standard telephone or internet networks, thereby extending the effective transmission distance while maintaining the convenience of contactless payment.
Solution Approach 2:
The patent transitions from direct short-range wireless communication between payment instrument and POS terminal to a multi-hop communication path involving mobile devices and standard networks. This dimensional change in communication architecture allows payments to be made from any location with network coverage, not just within 30 meters of the terminal.
2Adaptability or versatility
If specialized SPOS terminals with wireless capabilities are used for contactless payments, then payment processing capability is improved, but device complexity and cost increase
Solution Approach 1:
The mobile device serves as an intermediary that bridges the gap between contactless payment instruments and ordinary POS terminals. By receiving payment data from the contactless instrument and transmitting it through standard networks to the ordinary POS terminal, the system enables wireless payment functionality without requiring the POS terminal itself to have wireless capabilities.
Solution Approach 2:
The patent makes ordinary POS terminals universal by enabling them to process both traditional contact-based payments and contactless payments through mobile devices. The ordinary terminal maintains its simple hardware design while gaining the ability to handle wireless payment transactions via the mobile intermediary.
3Reliability
If NFC chips are embedded in mobile devices for contactless payment, then payment security and reliability are improved, but device complexity and manufacturing cost increase
Solution Approach 1:
The mobile device acts as an intermediary that secures payment information transmission. The mobile device receives encrypted payment data from the payment instrument, stores it securely, and transmits it to the POS terminal through standard networks, providing security without requiring NFC chips in either the mobile device or POS terminal.
Solution Approach 2:
The patent creates a functional copy of the contactless payment experience using standard mobile device capabilities. Instead of requiring NFC hardware, the mobile device captures and transmits payment information through software-based communication protocols, achieving the same payment functionality without specialized hardware components.
4Reliability
If short-range wireless protocols are used for payment transmission, then transmission security is improved through proximity requirements, but transmission distance and operational flexibility are reduced
Solution Approach 1:
The mobile device serves as a secure intermediary that receives payment information through proximity-based communication, then transmits it over longer distances through standard networks. This maintains the security benefit of proximity requirements for the sensitive payment data capture while providing operational flexibility for the subsequent transmission phase.
Solution Approach 2:
The patent segments the payment transmission process into two distinct phases: a secure proximity-based phase for capturing payment information from the instrument to the mobile device, and a flexible network-based phase for transmitting this information to the POS terminal. Each phase optimizes for its specific requirements, maintaining security where needed and providing flexibility where appropriate.
Data Source
AI summary
The current invention provides a mobile payment method and a number of variations that enable a consumer to pay for a purchase from a merchant. Preferably the consumer may use a mobile device such as a smart phone to complete the transaction. With the current invention, the merchant may be capable of conducting the transaction using only an ordinary point of sale (OPOS) terminal, allowing the merchant and consumer to conduct business in a more convenient manner. The variations of the core method also significantly facilitate possible payment from the consumer to the merchant, enhancing the efficiency of the transactions.