Mobile Rewards Redemption at POS Without Merchant System Changes

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Solution Overview

Problem

Current methods for redeeming rewards points are limited, as customers cannot directly redeem points in merchant point of sale transactions without separate systems or modifications to existing merchant point of sale devices.

Innovation Solution

A method of payment using rewards points that involves receiving authentication data and a payment amount on a customer's mobile device, determining available rewards points, and sending selectable payment options, allowing customers to redeem rewards points to fund a portion of the payment amount, which can be processed by existing merchant point of sale devices.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If customers use traditional rewards points redemption systems, then rewards points can be redeemed for cash or gifts, but customers cannot directly redeem points at merchant point of sale transactions and must use separate redemption transactions

Engineering Contradiction:

Improveconvenience of rewards points redemptionVSAvoidnumber of separate systems and devices required

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent combines the rewards points redemption system with the merchant point of sale system, allowing customers to redeem rewards points directly at the point of sale device during the original purchase transaction. This merging eliminates the need for separate redemption transactions and devices, as the mobile device now serves both as a payment method and a rewards points redemption instrument simultaneously.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The mobile device is赋予 multiple functions: it serves as both a credit card payment method and a rewards points redemption instrument. The single device can present both the form of payment for the purchase amount and the redeemed rewards points value to the merchant's point of sale device, eliminating the need for customers to carry separate payment devices or certificates.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Adaptability or versatility

If merchants implement traditional rewards points redemption systems, then customers can redeem points, but merchant point of sale devices require modification or additional software updates

Engineering Contradiction:

Improverewards points redemption capabilityVSAvoidmerchant system implementation complexity

Core Design Contradiction:

Adaptability or versatilityVSEase of manufacture

Solution Approach 1:

The mobile device acts as an intermediary that carries the rewards points redemption capability. Instead of modifying the merchant's point of sale system, the mobile device presents the redemption information to the existing point of sale device. This approach allows rewards points redemption without requiring any changes to the merchant's hardware or software infrastructure.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system uses a digital copy or representation of rewards points stored on the customer's mobile device. This digital copy can be presented to the merchant's point of sale device without requiring the merchant to have access to or modify the original rewards points system. The mobile device essentially carries a portable copy of the redemption authority.

Inventive Principle:

Principle #26Copying

3Reliability

If customers maintain redeemed rewards points in separate payment devices, then rewards points can be redeemed, but customers must carry additional payment devices and engage in separate transactions

Engineering Contradiction:

Improverewards points redemption assuranceVSAvoidnumber of payment devices to carry

Core Design Contradiction:

ReliabilityVSQuantity of substance

Solution Approach 1:

The patent merges the rewards points balance with the customer's mobile device that already contains their payment information. Instead of maintaining separate physical certificates or digital balances in different devices, the rewards points are integrated into the mobile device's payment application, allowing both payment and rewards redemption from a single device.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The mobile device becomes a universal financial instrument that handles both traditional payment functions and rewards points redemption. The single device can present both the form of payment for purchases and the redeemed rewards points value to merchants, eliminating the need for customers to carry multiple payment devices or physical certificates.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS12236448B2Payment using rewards points

Publication Date: 2025.02.25 WELLS FARGO BANK NA

AI summary

A method of payment using rewards is provided. The method includes detecting, by a mobile device of a customer, an authentication device based on a short range wireless communication between the mobile device and the authentication device; in response to detecting the authentication device, retrieving, by the mobile device, authentication data of the customer from the authentication device via the short range wireless communication; populating, by the mobile device, a graphical user interface displayed to the customer using the authentication data retrieved from the authentication device; receiving, by the mobile device, a selection from the customer to send the authentication data to an account management system; sending, by the mobile device, the authentication data to the account management system based on the received selection; and receiving, by the mobile device, a payment option for a transaction based on the customer being authenticated using the authentication data.