Mobile Payment Risk Engine for Transaction Acceleration

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Solution Overview

Problem

Existing mobile transaction systems face challenges in efficiently processing payments due to uncertainties in message delivery risks, leading to delays and inefficiencies in confirming transactions.

Innovation Solution

A system that includes a data storage facility and an interchange with a common format processor and converters to assess delivery risks of SMS messages, allowing for early notification to merchants if risks are low, and postponing notification if risks are high, ensuring secure and timely transaction processing.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If the system waits for delivery confirmation before notifying the merchant, then the reliability of transaction confirmation is improved, but the transaction processing time increases

Engineering Contradiction:

Improvetransaction confirmation reliabilityVSAvoidtransaction processing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system performs preliminary risk assessment using historical data and machine learning models before the actual transaction completion. This allows the system to pre-determine the likelihood of message delivery failure, enabling early notification to merchants for low-risk transactions without waiting for actual delivery confirmation, thus resolving the contradiction between reliability and processing time

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system dynamically adjusts the notification timing based on the calculated risk probability parameter. For transactions with risk probability below a threshold, notification is sent immediately; for higher risk transactions, notification is delayed until delivery confirmation. This parameter-based decision-making resolves the contradiction by adapting the confirmation process to each transaction's specific risk profile

Inventive Principle:

Principle #35Parameter changes

2Productivity

If the system sends early notification without delivery confirmation, then the transaction processing speed is improved, but the risk of false confirmation increases

Engineering Contradiction:

Improvetransaction processing speedVSAvoidconfirmation accuracy

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system continuously learns from actual delivery outcomes by comparing predicted risks with actual delivery confirmations. This feedback mechanism refines the risk prediction model over time, improving the accuracy of early notifications and reducing false confirmations, thereby resolving the contradiction between processing speed and confirmation accuracy

Inventive Principle:

Principle #23Feedback

3Device complexity

If the system uses uniform transaction processing for all messages, then the system complexity is reduced, but the transaction efficiency decreases

Engineering Contradiction:

Improveprocessing system complexityVSAvoidtransaction efficiency

Core Design Contradiction:

Device complexityVSProductivity

Solution Approach 1:

The system applies different processing strategies to different transactions based on their individual risk profiles. Low-risk transactions receive expedited processing with early notification, while high-risk transactions undergo more thorough verification. This localized quality approach optimizes efficiency for each transaction type without requiring complete system redesign, resolving the contradiction between complexity and efficiency

Inventive Principle:

Principle #3Local quality

Solution Approach 2:

The system segments transactions into different risk categories using machine learning models, allowing each segment to be processed differently. This segmentation enables efficient processing of the majority of low-risk transactions while maintaining careful oversight of high-risk transactions, resolving the contradiction between uniform system complexity and differentiated processing efficiency

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS8412155B2Systems and methods to accelerate transactions based on predictions

Publication Date: 2013.04.02 BOKU INC

AI summary

Systems and methods to accelerate transactions made via mobile communications. In one aspect, a system includes: a data storage facility to store information associated with past payment transactions and an interchange coupled with the data storage facility. The interchange includes a common format processor and a plurality of converters to interface with a plurality of controllers. The converters are configured to communicate with the controllers in different formats, and to communicate with the common format processor in a common format. The common format processor includes a risk engine and a transaction engine. The risk engine estimates a risk in a billing process; and the transaction engine determines whether or not to notify a merchant of the predicted result of billing based on the suggestion from the risk engine and/or other information, such as the status of the wireless telecommunications network.