MST Dongle for Mobile Wallet POS Compatibility
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Mobile wallet applications face difficulties interacting with existing merchant POS devices equipped with magnetic stripe readers, as they are not compatible with NFC payments, and the process of loading payment credentials into NFC chips is complex and expensive, limiting their penetration and usability.
Innovation Solution
A magnetic stripe capture, storage, and transmission device (MST dongle) that allows mobile devices to capture, store, and transmit magnetic stripe card data to conventional POS terminals, enabling secure and seamless transactions, and providing compatibility with both physical and virtual environments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If NFC chip based digital wallets are used for contactless payments, then payment security and convenience are improved, but device compatibility and penetration are worsened because most phones lack embedded NFC chips and POS devices are not ubiquitous
Solution Approach 1:
The patent creates a magnetic copy of the card data that can be transmitted through the MST dongle, replicating the magnetic stripe signal without requiring physical contact with the original card or NFC capability. This copying approach enables compatibility with legacy POS systems while maintaining security through encrypted transmission.
Solution Approach 2:
The MST dongle acts as an intermediary device that bridges the gap between mobile wallets and legacy magnetic stripe POS systems. It converts digital payment data into magnetic signals that can be read by traditional MSR readers, enabling universal compatibility without requiring updates to existing infrastructure.
2Adaptability or versatility
If NFC chips are embedded in mobile phones for digital wallets, then contactless payment capability is improved, but manufacturing cost and complexity are worsened due to the need for trusted security managers and complex loading processes
Solution Approach 1:
The patent extracts the NFC chip requirement from the mobile wallet system by using the MST dongle as an external device. This separates the payment capability from the phone's internal hardware, eliminating the need for embedded NFC chips and their associated complex provisioning processes while maintaining contactless payment functionality.
Solution Approach 2:
The MST dongle serves as a simpler, more affordable alternative to embedded NFC chips. It can be easily manufactured and distributed without requiring complex security infrastructure, making mobile wallet access more accessible to mass market consumers.
3Adaptability or versatility
If magnetic stripe data is transmitted by swiping cards against MSR readers, then compatibility with existing POS devices is improved, but convenience and speed are worsened requiring physical card handling
Solution Approach 1:
The patent replaces the mechanical card-swiping action with electronic magnetic signal transmission through the MST dongle. Instead of physically swiping a card against the reader, the dongle generates and transmits the magnetic signal wirelessly or via direct connection, eliminating the need for physical card handling while maintaining compatibility with MSR readers.
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
The MST dongle facilitates secure and cost-effective transactions by allowing magnetic stripe data to be captured and transmitted directly to POS systems, enhancing the usability of mobile wallets and reducing the complexity of loading payment credentials, thereby increasing the frequency of mobile wallet usage and providing additional functionalities like loyalty programs.
Implementation Method 1
a magnetic field transmitter which includes a driver and an inductor that can generate varying magnetic fields
Data Source
AI summary
A mobile checkout system and method for completing a purchase transaction to purchase items from an internet merchant. A user browses and selects items for purchase from the merchant through a shopping application or browser. During the processing of the transaction, a checkout application installed on a mobile communication device is launched. The checkout application receives a checkout token created by a checkout server that identifies the purchase transaction. The checkout application uses this token and communicates with the checkout server to cause the checkout server to complete the purchase transaction. When the transaction is complete, the shopping application or browser is relaunched and a results page is displayed.