Mobile Payment Scenario System with Device-Based Fraud Detection
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Solution Overview
Problem
Existing credit application processes often deter customers with intrusive requirements and constant solicitations, leading to a negative experience that can harm customer relationships, and fail to provide seamless payment scenarios, limiting customer convenience and provider revenue opportunities.
Innovation Solution
A system that uses mobile devices to pre-populate credit application forms with user-specific information, leveraging location data and device IDs for fraud detection and account verification, allowing for real-time presentation of payment scenarios and credit options without initially requiring personally identifiable information, and enabling seamless integration with mobile wallets for transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional credit application processes require personally identifiable information and intrusive verification, then fraud detection capability is improved, but customer experience deteriorates and application abandonment increases
Solution Approach 1:
The system performs preliminary fraud risk assessment using device identifiers and location data before requiring personally identifiable information. This preliminary action allows the system to establish a baseline risk profile early in the interaction, enabling conditional progression through the application process without immediately demanding intrusive verification
Solution Approach 2:
The system introduces device identifiers (IMEI, device tokens) and location data as intermediary elements that mediate between the customer and the credit decisioning system. These intermediaries serve as preliminary verification mechanisms that reduce reliance on personally identifiable information while maintaining fraud detection capabilities
2Productivity
If credit application processes solicit customers repeatedly to open accounts, then provider revenue opportunities are improved, but customer relationships deteriorate
Solution Approach 1:
The system implements feedback loops that monitor customer interactions, application outcomes, and payment behavior to dynamically adjust credit offering strategies. This feedback mechanism enables the provider to pursue revenue opportunities through targeted, data-driven approaches rather than repetitive solicitations, improving customer relationships while maintaining productivity
Solution Approach 2:
The system dynamically adapts credit offering strategies based on real-time data from mobile device interactions, location patterns, and payment behavior. This dynamic approach allows the provider to optimize revenue opportunities by presenting relevant credit products at appropriate moments rather than using static, repetitive solicitation methods
3Measurement precision
If credit application forms require complete information upfront, then account verification accuracy is improved, but application completion rates deteriorate
Solution Approach 1:
The system segments the credit application process into multiple stages, each requiring different levels of information. Initially, only device identifiers and basic location data are required. As customers progress through the process and demonstrate trustworthiness through payment behavior, additional verification layers are activated. This segmentation maintains verification accuracy while improving completion rates by reducing initial barriers
Solution Approach 2:
The system applies partial verification action initially, using only device identifiers and location data rather than complete personally identifiable information. This partial action is sufficient for initial risk assessment and allows applications to proceed. Additional verification is applied progressively based on risk levels and customer behavior, maintaining accuracy while improving completion
4Reliability
If payment scenarios are not seamlessly integrated with mobile devices, then transaction security is improved through traditional methods, but customer convenience deteriorates
Solution Approach 1:
The system merges credit account management and payment processing directly into the mobile device environment. Credit accounts are established and managed through the mobile application, and payments are processed seamlessly through the same interface. This merging eliminates the need for separate traditional payment methods while maintaining security through integrated device-based verification
Solution Approach 2:
The mobile device serves multiple functions: it acts as the application interface, stores credit account information, performs verification, and processes payments. This multi-functionality consolidates what were previously separate security and convenience functions into a single universal platform, achieving both transaction security and customer convenience
Data Source
AI summary
A system and method for providing a customer with a number of payment scenarios is disclosed. The method receives at a payment provider computing system an inquiry about a payment scenario for a customer, the inquiry including identification information for the customer, utilizes the identification information to perform a credit prescreen, and generates, based on a result of the credit prescreen, a plurality of payment scenarios with associated terms. The plurality of payment scenarios with associated terms is then provided to the customer and the customer selects the desired payment scenario. An agreement with the associated terms of the payment scenario is generated and provided to the payment provider computing system. The mobile device provides the selected payment scenario to a retail computing system during a checkout process and the transaction is completed.