Mobile Wallet Handshake for Secure Peer-to-Peer Payments
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Solution Overview
Problem
Consumers are required to carry traditional payment instruments like credit cards, cash, or checks for transactions, which can be inconvenient and vulnerable to unauthorized use.
Innovation Solution
A system that enables payment via a mobile device by generating wallet identifying data, allowing secure transactions without direct presentation of payment information, using a personal area network for communication, and integrating with a payment system for validation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If consumers use traditional payment instruments (cash, credit cards, checks), then payments can be processed, but consumers must carry multiple payment instruments and physical wallets which is inconvenient and vulnerable to unauthorized use
Solution Approach 1:
The patent extracts the payment instrument functionality from physical forms (cash, cards, checks) and relocates it to a digital wallet stored on a mobile device. The mobile device becomes the new wallet containing virtual payment instruments, eliminating the need to carry physical payment instruments while maintaining payment capability.
Solution Approach 2:
The patent creates a digital copy of the payment instrument within the mobile device's wallet application. Instead of using the original physical card or cash, the system uses a virtual representation that can be transmitted electronically, providing a backup and eliminating the need to physically carry the original payment instrument.
2Reliability
If consumers present payment information directly to merchants, then transactions can be completed, but consumers and merchants are vulnerable to unauthorized transactions and fraud
Solution Approach 1:
The patent introduces a payment processing system as an intermediary between the consumer's mobile device and the merchant. This intermediary validates payment information, communicates with financial institutions, and ensures secure transaction processing. The intermediary layer protects both parties by verifying payment authenticity before completing the transaction.
Solution Approach 2:
The patent performs preliminary validation of payment information before the actual transaction occurs. The system verifies payment instrument validity, checks for fraud indicators, and ensures proper authorization before allowing the transaction to proceed, preventing unauthorized transactions from being processed.
Data Source
AI summary
Systems and related methods facilitating payments with a mobile device are discussed herein. Circuitry in a networked-based payment system may be configured to receive payment information from a first device. The first device may include circuitry configured to wirelessly receive wallet identifying data from the payment system. The wallet identifying data may be used to secure messages between the first device and another device over a wireless link. For example, the first device may be configured to send the wallet identifying data to a second device, which may then communicate with the payment system. In response, consumer identifying data associated with the wallet identifying data may be received by the second device from the payment system. In some embodiments, use of wallet identifying data may be applied to other communications, such as for messages that authorize payment.