Mobile Device Intermediary for Offline Payment Processing

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Solution Overview

Problem

Existing payment processing systems require connectivity between a transaction terminal and a payment processing server, limiting their functionality, especially for mobile merchants without access to a network connection.

Innovation Solution

A payment processing system that utilizes a mobile wireless communications device with a processor to facilitate transactions by sending and receiving information via NFC or Bluetooth devices, allowing transactions to be processed even without a network connection between the terminal and server.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If a payment processing system uses a transaction terminal with connectivity to a payment processing server, then transaction processing reliability is improved, but device complexity and cost increase

Engineering Contradiction:

Improvetransaction processing reliabilityVSAvoidsystem complexity

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The mobile wireless communications device serves as an intermediary between the transaction terminal and the payment processing server. It receives transaction information from the terminal via NFC or Bluetooth, communicates with the server, and relays payment confirmations back to the terminal, enabling offline transaction processing without requiring the terminal to have direct server connectivity

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The payment processing system is segmented into separate functional components: the transaction terminal handles local transaction initiation, the mobile device manages wireless communication and data transmission, and the payment server processes payments. This segmentation allows each component to be optimized independently and reduces the complexity requirements for the terminal

Inventive Principle:

Principle #1Segmentation

2Adaptability or versatility

If a transaction terminal has network connectivity to a payment processing server, then transaction processing capability is improved, but cost increases

Engineering Contradiction:

Improvetransaction processing capabilityVSAvoidsystem cost

Core Design Contradiction:

Adaptability or versatilityVSEase of manufacture

Solution Approach 1:

The mobile device acts as a cost-effective intermediary that provides the necessary network connectivity and payment processing capabilities without requiring expensive infrastructure modifications to the terminal. The terminal can remain a simple, low-cost device while still enabling full payment processing functionality through its connection to the mobile device

Inventive Principle:

Principle #24Intermediary (Mediator)

3Ease of operation

If a mobile wireless communications device stores card information, then convenience is improved, but security risk increases

Engineering Contradiction:

Improvepayment convenienceVSAvoidsecurity risk

Core Design Contradiction:

Ease of operationVSObject-affected harmful factors

Solution Approach 1:

The system creates a digital copy of card information stored securely in the mobile device's memory, allowing the card to be used electronically without carrying the physical card. The copy is transmitted wirelessly to the terminal only when needed for a transaction, reducing the risks associated with carrying and losing physical cards while maintaining security through controlled transmission

Inventive Principle:

Principle #26Copying

Applied Scientific Principles

This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.

Function Achieved in This Case

Enables transaction processing for mobile merchants without the need for a network connection, reducing costs and increasing operational flexibility, particularly suitable for vending machines and small-scale vendors.

Implementation Method 1

The first wireless device may be a first near field communications (NFC) device. The second wireless device may be a second NFC device.

Methodology Applied

Scientific EffectNear field communications (NFC): Electromagnetic Induction

Implementation Method 2

The first wireless device may include, or be, a first Bluetooth device. The second wireless device may include, or be, a second Bluetooth device.

Methodology Applied

Scientific EffectBluetooth wireless communication: Electromagnetic Induction

Data Source

PatentUS8740064B2Payment processing system including mobile wireless communications device to send a payment confirmation to a transaction terminal and associated methods

Publication Date: 2014.06.03 MALIKIE INNOVATIONS LTD

AI summary

A payment processing system includes a transaction terminal having a merchant account associated therewith and including a first wireless device. The payment processing system also includes a payment server, and a mobile wireless communications device having a purchaser account associated therewith and including a second wireless device and a processor coupled thereto and configured to send transaction information to the payment server. The payment server is configured to cause a transfer of funds from the purchaser account to the merchant account based upon the transaction information, and to send payment confirmation to the mobile wireless communications device based upon the transfer of funds. The processor is configured to send the payment confirmation to the transaction terminal via the first and second wireless devices.