Mobile Device POS Terminal for Secure Customer Payment
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Solution Overview
Problem
Conventional payment systems fail to provide secure, practical, and cost-effective solutions for customer-initiated transactions using multiple payment methods, such as cryptocurrency, and often expose customer card information to merchants, leading to security risks and high implementation costs.
Innovation Solution
A system utilizing a customer's mobile device with NFC capabilities, a digital wallet, and a multi-payment gateway, where the mobile device acts as a POS terminal, enabling transactions through NFC or BLE communication, allowing selection of various payment methods without storing card information on the device, thus enhancing security and reducing merchant processing fees.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If customer card information is transferred to merchant's POS terminal for payment processing, then payment transaction can be completed, but customer's card information security is compromised and risk of theft increases
Solution Approach 1:
The patent extracts the card information from the merchant's POS terminal environment and keeps it exclusively within the customer's mobile device. The mobile device acts as a secure token that generates payment authentication without exposing actual card information to the merchant or POS terminal, thereby eliminating the security risk while maintaining payment functionality.
Solution Approach 2:
The patent introduces the customer's mobile device as an intermediary between the card information and the POS terminal. The mobile device contains a mobile application that generates payment authentication codes or tokens, which are then transmitted to the POS terminal instead of actual card information, thus mediating the payment process securely.
2Ease of operation
If mobile device stores customer's card information for payment processing, then payment convenience is improved, but security risk increases if mobile device is stolen
Solution Approach 1:
The patent extracts the actual card information from the mobile device's storage and replaces it with a mobile application that generates payment authentication dynamically. The card information never resides in the mobile device; instead, the device stores only the mobile application that can generate secure payment tokens when needed, eliminating the security risk of device theft.
Solution Approach 2:
The patent creates a functional copy of the card's payment capability through the mobile application, which can generate authentication tokens without containing the actual card information. This copy enables payment functionality while maintaining security, as the token generation process does not require or store sensitive card data.
3Ease of operation
If merchant uses traditional POS terminal for payment processing, then payment transaction can be completed, but implementation cost and complexity increase
Solution Approach 1:
The patent makes the customer's mobile device universal by enabling it to perform both as a payment card and as a POS terminal. The mobile application can generate payment authentication and also process payment information, eliminating the need for separate POS terminal hardware at the merchant location and reducing implementation complexity.
Solution Approach 2:
The patent inverts the traditional payment model where the merchant's POS terminal processes card information. Instead, the customer's mobile device becomes the active processing unit that generates payment authentication and communicates with the payment network, reversing the roles and eliminating the need for complex merchant-side infrastructure.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
This solution enables secure, cost-effective customer-initiated transactions across multiple payment methods, including credit/debit cards and cryptocurrency, without exposing card information to merchants, simplifying the payment process, and reducing the need for merchant POS terminals, while maintaining compatibility with existing payment infrastructures.
Implementation Method 1
the mobile device is constructed to enable near-field communication (NFC)
Implementation Method 2
transferring the chip serial number, or the card serial number, from the payment card to the mobile device via NFC or Bluetooth Light Energy (BLE) communication
Data Source
AI summary
A system for a customer initiated payment transaction includes a mobile device of a customer, the mobile device including a camera wherein the mobile device is constructed to enable near-field communication (NFC), a mobile application or digital wallet installed and operated in the mobile device, a payment card of the customer having card information wherein the payment card is constructed to enable NFC, and a payment information which includes a payment amount. The merchant information includes a merchant code. The mobile application or the digital wallet of the mobile device is operative to process a payment transaction which establishes the mobile device of the customer as a point-of-sale terminal.