Mobile Payment Tokenization via Intermediary System
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Solution Overview
Problem
Current mobile payment systems face challenges in widespread adoption due to the need for merchants to store sensitive account data and lack of analytics for predictive value-added services, limiting their deployment and effectiveness.
Innovation Solution
A payment management system that enables mobile payments by generating a unique token on a mobile device, which is scanned or read by POS terminals, eliminating the need for merchants to store sensitive account data and allowing for tokenization and analytics to provide predictive services.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If mobile payment systems store sensitive account data at POS terminals, then payment processing can be performed, but security risks increase and merchant integration complexity increases
Solution Approach 1:
The patent extracts sensitive account data storage from the POS terminal system and places it in a secure remote location (payment management system). The POS terminal only stores tokenized representations that cannot be used without the payment management system, thereby eliminating the security risk of storing sensitive data at merchants while keeping the POS system simple.
Solution Approach 2:
The patent introduces a payment management system as an intermediary between the mobile device and the POS terminal. This intermediary handles authentication, tokenization, and secure data management, allowing the POS terminal to process payments without directly handling sensitive account information, thus reducing both security risks and system complexity.
2Adaptability or versatility
If mobile payment applications are developed by banking institutions partnering with individual merchants, then customized payment solutions can be provided, but deployment time and integration costs increase
Solution Approach 1:
The patent creates a universal payment management system that can serve multiple merchants through a single integration. The system provides adaptable payment solutions for different merchants without requiring individual partnerships, as the platform inherently supports multiple merchants with standardized interfaces and customizable payment flows through the unified system.
Solution Approach 2:
The patent implements pre-configured payment profiles and tokenization templates that are prepared in advance by the banking institution. When a new merchant joins the network, these pre-prepared components can be quickly deployed without requiring extensive customization or integration work, significantly reducing deployment time while maintaining adaptability.
3Loss of information
If user specific data from mobile payments is collected, then analytics for predictive services can be generated, but data privacy concerns and system complexity increase
Solution Approach 1:
The payment management system acts as an intermediary that collects, anonymizes, and processes user data centrally. This intermediary layer enables comprehensive analytics and predictive services while maintaining user privacy through centralized control over data access and processing, preventing individual merchants from accessing raw personal information.
Solution Approach 2:
The patent creates anonymized copies of user transaction data for analytics purposes while preserving the original data's utility for payment processing. These copied, de-identified datasets can be used for predictive analytics and service improvements without exposing sensitive user information, thus generating analytics value while managing data privacy and complexity.
Data Source
AI summary
Systems and methods for managing mobile payments is provided. An account issuer provides an application that is loaded onto a mobile device, which enables a consumer to pay for transactions. The mobile payment application generates a unique code. The code is read by the point of sale terminal, which is then provided to the payment management system. The payment management system contracts the account issuer and authenticates the code, thereby receiving a primary account number. Account number and transaction information is used to authorize the transaction via payment systems. The payment system accepts or declines the transaction in a response. Tokens may be generated for the account number, and value added services may be generated based upon user behaviors.