Mobile Payment Tokenization via Intermediary Service Provider

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Solution Overview

Problem

Current mobile device payment systems in retail environments face resistance due to the risk of financial information interception, as they require storing and communicating sensitive account information.

Innovation Solution

A payment system that communicates a store identifier, POS identifier, and transaction amount from the POS to a mobile device, which then relays this information to a communications service provider, allowing the financial institution to associate a customer identifier with an account for approval, thereby avoiding the need to store or transmit account numbers within the retail environment.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If mobile device stores and communicates account information in retail environment, then payment transaction can be processed, but security risk increases due to potential interception of financial information

Engineering Contradiction:

Improvepayment transaction processingVSAvoidsecurity risk from information interception

Core Design Contradiction:

ProductivityVSObject-affected harmful factors

Solution Approach 1:

The patent extracts the sensitive account information from the mobile device and retail environment entirely. Instead of storing account numbers on the mobile device, the system uses a tokenization approach where a unique identifier is stored locally while the actual account information remains only in the secure database at the financial institution. This extraction eliminates the security vulnerability while maintaining transaction functionality.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The patent introduces a communications service provider as an intermediary between the mobile device and the financial institution. This mediator translates the unique identifier from the mobile device into the corresponding account information without exposing either party to the other's sensitive data, thereby enabling secure transaction processing without direct exposure of financial information.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Adaptability or versatility

If account information is communicated wirelessly in retail environment, then mobile payment is enabled, but reliability decreases due to potential information interception

Engineering Contradiction:

Improvemobile payment capabilityVSAvoidsecurity of financial information transmission

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The patent creates a simplified copy or representation of the account information in the form of a unique identifier that can be safely transmitted wirelessly. This identifier is not the actual account number but serves as a reference that can be mapped to the real account through the intermediary service, enabling mobile payment while maintaining security.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The communications service provider acts as a trusted intermediary that handles the translation and transmission of payment information. It receives the unique identifier from the mobile device, retrieves the corresponding account information securely, and forwards it to the financial institution, thereby enabling reliable wireless communication without exposing sensitive data to interception risks.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Object-affected harmful factors

If traditional payment card system is used, then financial information security is maintained, but ease of operation decreases as consumers must carry physical payment cards

Engineering Contradiction:

Improvefinancial information securityVSAvoidconvenience of payment

Core Design Contradiction:

Object-affected harmful factorsVSEase of operation

Solution Approach 1:

The patent replaces the mechanical payment card system with a wireless electronic communication system. Instead of physically swiping or inserting a card, the mobile device communicates payment information wirelessly through a standardized interface, eliminating the need for physical cards while maintaining security through the tokenization and intermediary approaches.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent creates a universal payment interface that can work across different retail environments and mobile devices. The standardized communication protocol allows any compatible mobile device to function as a payment instrument, replacing the need for specific physical cards while maintaining security through the underlying tokenization system.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS10269003B2System and method for transaction payments using a mobile device

Publication Date: 2019.04.23 WALMART APOLLO LLC

AI summary

A system and method for performing a financial transaction may include processing a purchase transaction for products for purchase by a customer to determine a transaction amount. A communication with a mobile device of the customer may include communicating a store identifier, POS identifier, and the transaction amount. In response to receiving an approval number for the purchase transaction from a financial institution of the customer, completing the purchase transaction for the purchase of the products by the customer.