Mobile Device POS Integration for Contactless Payments

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Solution Overview

Problem

Merchants require additional hardware to accept payments, limiting the ability to process contactless cards and mobile payments without specialized Point of Sale (POS) terminals.

Innovation Solution

Enabling payment acceptance on mobile communication devices, such as smartphones and tablets, using integrated POS terminals that support NFC and other communication interfaces, eliminating the need for external hardware and allowing integration with third-party applications.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If merchants use traditional POS terminals to accept payments, then payment processing capability is provided, but additional external hardware is required which increases device complexity and cost

Engineering Contradiction:

Improvepayment acceptance capabilityVSAvoidhardware requirements

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent combines the POS terminal functionality with the mobile communication device by integrating a payment application into the device's operating system. The mobile device's existing components (processor, memory, communication interfaces like NFC) are merged to create an integrated payment system, eliminating the need for separate external POS hardware.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The mobile communication device is designed to perform multiple functions including communication, computing, and payment processing. By making the device universal, it can serve as both a communication tool and a POS terminal, reducing the need for specialized hardware and increasing adaptability across different use cases.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Device complexity

If merchants adopt mobile POS terminals to reduce hardware requirements, then portability is improved, but integration with third-party applications and business functionalities is limited

Engineering Contradiction:

Improvehardware configurationVSAvoidthird-party application integration

Core Design Contradiction:

Device complexityVSAdaptability or versatility

Solution Approach 1:

The system uses a dynamic payment application that can be updated and configured through software rather than fixed hardware. This allows the functionality to adapt and expand as new communication standards and third-party integration requirements emerge, making the system flexible and updatable without hardware changes.

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The payment application acts as an intermediary layer between the mobile device's communication capabilities and third-party business applications. This software mediator enables integration with various business functionalities (loyalty programs, inventory management, etc.) without requiring direct hardware modifications.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Productivity

If contactless payment interfaces like NFC are implemented, then payment speed is improved, but security requirements and authentication complexity increase

Engineering Contradiction:

Improvetransaction processing speedVSAvoidauthentication mechanism

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The system implements self-service authentication mechanisms where the mobile device automatically handles security protocols, token generation, and verification processes. The payment application manages authentication without requiring manual intervention or complex user actions, maintaining fast transaction speeds while handling security automatically.

Inventive Principle:

Principle #25Self-service

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

Facilitates contactless and mobile payments directly on existing mobile devices, enhancing merchant capabilities without additional hardware requirements and integrating with various business applications.

Implementation Method 1

the authorization request message is encrypted by a point-of-sale module residing in a secure element within the accepting mobile communication device

Methodology Applied

Scientific EffectEncryption:

Implementation Method 2

The request may be sent via a contactless payment card or a payment enabled mobile communication device... including NFC®, FeliCa® and others

Methodology Applied

Scientific EffectNFC (Near Field Communication): Electromagnetic Induction

Data Source

PatentUS11494756B2Payment transactions with integrated point of sale terminals

Publication Date: 2022.11.08 BANKS & ACQUIRERS INT HLDG SAS

AI summary

A mobile communication device accepts payments and is capable of integration of retail business applications without additional hardware. It allows merchants to accept card present payments directly without any need for additional external hardware, such as Point of Sale (POS) terminals. The merchant can accept card present payments from a contactless credit/debit card, from a mobile smart phone or another mobile telecommunication device supporting payment card digitization, or from a mobile smart phone or another mobile telecommunication device that carries or can access and transmit relevant payment information.