Mobile Wallet Tokenization for Secure NFC Payments
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Solution Overview
Problem
The implementation of mobile wallets for electronic payments in merchant stores in the United States is slow due to consumer security and privacy concerns, as well as a lack of supporting infrastructure, leading to limited adoption and reliance on traditional credit card payments.
Innovation Solution
A system that uses a mobile communication device as a mobile wallet, establishing a near-field communication (NFC) connection between the consumer's and merchant's devices, with a cloud server hosting credit card data, where an authorization token is generated and exchanged to process transactions without sharing credit card data with the merchant, ensuring secure and efficient processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If mobile wallet is implemented for electronic payments, then payment convenience is improved, but consumer security and privacy concerns worsen
Solution Approach 1:
The patent introduces a tokenization system where sensitive payment data is replaced with non-sensitive tokens. The token acts as an intermediary that preserves payment functionality while eliminating security risks. The token contains no actual payment information but can be used to complete transactions, thus resolving the contradiction between convenience and security.
Solution Approach 2:
The patent creates a copy of the payment process using tokens instead of actual payment data. The token is a functional copy that enables the same payment operations without containing sensitive information, allowing consumers to enjoy payment convenience without exposing their actual payment details.
2Device complexity
If credit card data is transmitted to merchant for processing, then transaction processing is simplified, but data security is worsened
Solution Approach 1:
The patent extracts sensitive payment data from the transaction flow by replacing it with tokens. The actual credit card information is taken out of the transmission path between merchant and consumer, leaving only non-sensitive tokens that cannot be used for fraud even if intercepted.
Solution Approach 2:
The token serves as an intermediary that enables transaction processing without requiring actual payment data to be transmitted. The merchant receives and processes tokens instead of sensitive information, maintaining processing functionality while eliminating data exposure risks.
3Productivity
If mobile wallet infrastructure is established, then electronic payment adoption is improved, but implementation complexity is worsened
Solution Approach 1:
The patent creates a universal tokenization framework that can be implemented across different payment systems and platforms. The token standard works with various payment cards and transaction types, allowing widespread adoption without requiring separate implementations for each scenario, thus reducing overall implementation complexity.
Solution Approach 2:
The patent establishes tokenization rules and protocols in advance before transactions occur. By pre-defining how tokens are generated, stored, and processed, the system eliminates the need for complex real-time decisions during transactions, simplifying implementation while enabling rapid adoption.
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 enhances consumer confidence in using mobile wallets by securing credit card information on a cloud server, allowing secure and efficient electronic transactions without exposing credit card data to merchants, thus facilitating the adoption of mobile payments.
Implementation Method 1
establishing a NFC connection between an electronic payment device of the merchant and a mobile communication of the consumer. The short range NFC connection is established when the electronic payment device and the mobile communication device contact or are placed sufficiently close to each other.
Data Source
AI summary
Mobile payments and processing data related to electronic transactions. A near field communication connection is established between a mobile communication device of a consumer that serves as a mobile wallet and an electronic payment device of a merchant. Authorization data is shared between the mobile communication device and the electronic payment device without providing electronic payment instrument (e.g. credit card) data to the merchant. Authorization data is transmitted from the mobile communication device to a cloud computer or resource that serves as a cloud wallet and hosts respective data of respective electronic payment instruments of respective consumers, and from the electronic payment device a payment processor computer. The payment processor computer presents the authorization data to the cloud wallet, and in response, the cloud wallet transmits the credit card data to the payment processor computer, which processes the transaction.