Mobile Payment Server Mediator for Fee Reduction
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Solution Overview
Problem
Current mobile devices lack a credit device processor, leading to inconvenient and costly payment methods such as writing checks or using wire transfers, which often include transaction fees, especially for mobile-to-mobile transactions like B2B, B2C, or C2C.
Innovation Solution
A mobile-to-mobile payment system utilizing SMS or text messaging to facilitate payments between mobile devices, where a payment server receives messages from a payor's mobile device with a payee's identifier and amount, associates accounts, and executes fund transfers, eliminating the need for a credit card processor and reducing fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional payment methods (checks, wire transfers) are used for mobile-to-mobile transactions, then payment functionality is available, but transaction fees are high and convenience is poor
Solution Approach 1:
The patent introduces a payment server as an intermediary between mobile devices, enabling direct mobile-to-mobile fund transfers without traditional banking intermediaries. The server receives payment requests from payor mobile devices, processes transactions, and delivers funds to payee mobile devices, eliminating the need for checks or wire transfers and their associated fees
Solution Approach 2:
The patent replaces physical payment mechanisms (writing checks, visiting banks for wire transfers) with electronic messaging systems. SMS or text messaging applications on mobile devices substitute for mechanical writing and physical document handling, enabling instantaneous payment initiation and tracking
2Adaptability or versatility
If a credit card processor is integrated into mobile devices, then payment processing capability is improved, but device complexity and security risks increase
Solution Approach 1:
The patent extracts the credit card processing functionality from the mobile device itself and relocates it to a remote payment server. The mobile device only needs to send payment requests via SMS or text messaging, while all complex processing, security verification, and fund transfer operations occur on the server, maintaining simplicity and security
Solution Approach 2:
The payment server provides universal payment processing capabilities that serve multiple mobile devices and multiple payees. Instead of each mobile device needing its own dedicated processing system, a single multi-functional server handles all payment operations for all users, reducing overall system complexity
3Ease of operation
If financial information is transmitted over wireless networks for mobile payments, then payment convenience is improved, but security risk of financial information exposure increases
Solution Approach 1:
The payment server acts as a secure intermediary that receives sensitive financial information through controlled interfaces rather than direct wireless transmission between devices. The server validates, processes, and stores financial data in a secure environment, minimizing exposure to wireless network threats while maintaining payment convenience
Solution Approach 2:
The system implements prior security measures including encrypted communication channels, authenticated user verification, and validated transaction formats before financial information is processed. These preventive security layers are built into the payment flow to cushion against potential security breaches before they can occur
Data Source
AI summary
A mobile-to-mobile payment method and system are presented. One or more payor messages are received at a payment server from a mobile device associated with a payor. The one or more payor messages include an identifier of a payee and an amount. The identifier of the payee is associated with a payee account, and the mobile device is associated with a payer account. The payment server executes a transfer of funds of the amount from the payor account to the payee account.