NFC ATM Activation for Mobile Wallet Payment Tokens
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Solution Overview
Problem
Existing mobile wallet systems face challenges in activating payment tokens, leading to inactive tokens that cannot be used for purchases, due to cumbersome activation processes that often result in forgotten or unactivated tokens.
Innovation Solution
The implementation of an automated teller machine (ATM) with near-field communication (NFC) capabilities that establishes an NFC session with a mobile device, receives authentication credentials, verifies them, and activates an inactive payment token within the mobile wallet.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If payment tokens are automatically added to mobile wallets, then the convenience of using mobile devices for payments is improved, but the tokens remain inactive and cannot be used for purchases
Solution Approach 1:
The system performs preliminary actions by automatically adding payment tokens to the mobile wallet during the card issuance process, but the activation is deferred until the customer actually needs to use the card. The token is prepared in advance but remains inactive until triggered by a purchase attempt or manual activation.
Solution Approach 2:
The system enables self-service activation where the customer can activate their payment token automatically when they attempt to make a purchase or when they access the wallet app. The activation process requires minimal user input, allowing the customer to activate the token themselves without requiring manual intervention from bank staff.
2Reliability
If customers manually activate payment tokens, then the activation process provides control over when tokens become active, but the process becomes cumbersome and tokens are often forgotten or unactivated
Solution Approach 1:
The system provides feedback to the customer when a payment token needs activation. When a customer attempts to make a purchase with an inactive token, the system sends a notification or alert prompting them to activate the token. This feedback mechanism ensures the customer is aware of the activation requirement without requiring them to proactively check or remember to activate tokens in advance.
Solution Approach 2:
The system introduces an intermediary activation mechanism that bridges the gap between token issuance and token usage. Instead of requiring direct manual activation by the customer, the system uses automated notifications and in-app prompts as intermediaries to guide the customer through the activation process, making it less cumbersome and more intuitive.
3Reliability
If payment tokens are kept inactive until activation, then security is improved by preventing unauthorized use, but usability deteriorates as tokens cannot be used for purchases until activated
Solution Approach 1:
The system makes the token status dynamic rather than static. Tokens start in an inactive state for security, but can be easily transitioned to an active state when the customer needs to use them. The token status changes from inactive to active based on user actions, allowing the system to adapt between security mode (inactive) and usability mode (active) as needed.
Solution Approach 2:
The system prepares payment tokens in advance during card issuance, adding them to the mobile wallet with inactive status. This preliminary action ensures security by keeping tokens inactive until needed, while the preparation work is done beforehand so that activation happens quickly when the customer attempts a purchase or accesses the wallet.
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 provides a convenient and straightforward method for activating mobile wallet payment tokens, reducing the likelihood of inactive tokens and enhancing the usability of mobile wallets for transactions.
Implementation Method 1
establish, by the NFC device, an NFC session with a mobile device of the customer
Data Source
AI summary
A mobile device includes a processing circuit having a processor and a memory. The memory stores instructions that, when executed by the processor, cause the processing circuit to receive an inactive payment token associated with a payment card; transmit a proximity notification to an automated teller machine (ATM) when the mobile device is proximate the ATM; receive a notification from the ATM prompting the customer to activate the inactive payment token via the ATM in response to the proximity notification and a determination by the ATM that the inactive payment token is inactive; establish a short-range communication session with the ATM; provide authentication information to the ATM; receive an indication of a change in status of the inactive payment token to active from the ATM based on the customer being authenticated using the authentication information; and update the status of the inactive payment token from inactive to active.