Mobile Payment Tokenization via QR Code Scanning
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Solution Overview
Problem
Security and ease of use issues persist in payment transactions conducted via mobile devices and telecommunications networks, particularly regarding the transmission of private payment information.
Innovation Solution
A customer apparatus that reads transaction data from a product provider artefact, such as a QR code or RFID, and connects over a communication network to a financial institution application to facilitate secure payments without exposing private information to the merchant, using a mobile device with a processor and transceiver to transmit and receive data, and providing a security device for authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If mobile devices are used for payment transactions, then convenience and accessibility are improved, but security risks regarding private information transmission increase
Solution Approach 1:
The patent extracts private information (credit card numbers, CVV, expiration dates) from the transaction flow entirely. Instead of transmitting these sensitive details over networks, the system uses tokenization where placeholder values replace actual card information, eliminating the security vulnerability while preserving payment functionality.
Solution Approach 2:
The patent introduces a tokenization intermediary layer between the mobile device and the payment network. Tokens act as mediators that carry transaction information without exposing actual card details, thus securing the transmission while enabling payment processing.
2Productivity
If private information is transmitted over networks, then transaction processing is enabled, but security vulnerabilities and fraud risks increase
Solution Approach 1:
The patent creates token copies that represent actual card information without being the real data. These token copies enable transaction processing while being worthless to fraudsters who intercept them, as tokens cannot be reverse-engineered to reveal actual card numbers.
Solution Approach 2:
Tokens serve as intermediary representations that enable network transmission for transaction processing without exposing sensitive information. The tokenization system mediates between the need for data transmission and the need for security.
3Ease of operation
If customers provide credit card details to merchants, then payments can be processed, but information security and privacy are compromised
Solution Approach 1:
The patent removes private information from the merchant's view entirely. Merchants receive and process tokens instead of actual card details, eliminating the security risk of information exposure while maintaining the ability to process payments.
Solution Approach 2:
The tokenization system enables customers to make payments without exposing their information to merchants. The system serves itself by automatically substituting tokens for card details in the transaction flow.
Data Source
AI summary
A method and apparatus for facilitating payments for transactions, via mobile devices and mobile telecommunications networks, is disclosed. In an embodiment, a product provider is provided with a code, such as a QRcode, which contains or references payment details for purchase of the product. A mobile user of the application scans the code and is connected to their internet banking application. The payment details are transferred to the internet banking application and the mobile user confirms that the transaction should proceed. Payment is made without any secure details being provided to the product provider.