Mobile Payment Tokenization via Encrypted Cryptograms
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Solution Overview
Problem
Existing card-based and digital wallet payment methods require complex infrastructure setups and lack security in alternative proximity payment methods.
Innovation Solution
A method involving a mobile terminal sending a unique identifier to a payment backend system, which generates a cryptogram containing a unique transaction identifier, transformed into a proximity payment token for secure transmission via proximity communication channels, with the backend system decrypting and processing the transaction.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If TSM-based or HCE-based NFC payment methods are used, then payment security is improved, but infrastructure complexity and setup costs increase
Solution Approach 1:
The patent uses a virtual card that is a digital copy of the physical card, storing card data in a secure element. This copying approach eliminates the need for complex TSM or HCE infrastructure while maintaining security through encrypted card information storage and transmission via proximity channels.
Solution Approach 2:
The patent extracts the essential payment functionality from the physical card and transfers it to a digital format stored in the mobile device's secure element. This extraction allows payment operations to be performed without the physical card while maintaining security through the secure element's protection mechanisms.
2Ease of operation
If alternative card-less proximity payment methods are used, then ease of operation is improved, but payment security deteriorates
Solution Approach 1:
The patent introduces a proximity channel as an intermediary for card-less payment transactions. This intermediary transmits encrypted payment data between the mobile device and payment terminal without requiring physical card contact, thus maintaining convenience while ensuring security through encryption and the use of a secure element.
Solution Approach 2:
The patent changes the transmission medium from physical card contact to wireless proximity communication channels (NFC, Bluetooth, ultrasound, or optical signals). This parameter change maintains ease of operation by eliminating physical card handling while securing transactions through encrypted data transmission and validation protocols.
3Reliability
If physical cards are used for payment transactions, then payment security is maintained, but ease of operation and convenience deteriorate
Solution Approach 1:
The patent creates a digital copy of the physical payment card in the form of a virtual card stored in the mobile device's secure element. This copy provides the same security features as the physical card while offering greater convenience through contactless proximity transactions and the ability to store multiple virtual cards.
Solution Approach 2:
The patent replaces the mechanical system of physical card insertion and contact with wireless proximity communication channels. This substitution eliminates the need for physical card handling while maintaining security through encrypted data transmission and secure element protection.
Data Source
AI summary
Methods and devices for of conducting a payment transaction between a mobile terminal and a payment terminal in communication with a payment backend system involve: (a) sending a unique mobile terminal identifier from the mobile terminal to the payment backend system; (b) returning a cryptogram from the payment backend system to the mobile terminal, wherein the cryptogram comprises a unique transaction identifier in encrypted form; (c) transforming the cryptogram into a proximity payment token such that the proximity payment token contains the unique transaction identifier in encrypted form and transmitting the proximity payment token to the payment terminal via a proximity communication channel; (d) forwarding a transaction record including the unique transaction identifier in encrypted form and the amount of the payment transaction from the payment terminal to the payment backend system; and (e) decrypting the unique transaction data identifier in encrypted form and processing the payment transaction.