Anonymous NFC Mobile Payments via Tokenized Identifiers
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Solution Overview
Problem
Current payment systems are inefficient for person-to-person transactions, particularly in situations where anonymity is desired, as they often require physical interaction or exchange of personal information, and lack real-time notification and secure, fast transaction processing.
Innovation Solution
A method and system using a mobile application with near-field communication (NFC) that allows for anonymous person-to-person payments by detecting nearby devices, sending transaction requests with tokenized identifiers, and providing real-time notifications without requiring personal or account information, utilizing a network interface circuit and digital payments application to facilitate secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If traditional payment methods (cash, checks, cards) are used for person-to-person transactions, then personal information exchange and physical interaction are required, but transaction speed and security are reduced
Solution Approach 1:
The patent replaces mechanical/physical payment methods (cash handling, card swiping, check writing) with a digital mobile payment system using NFC technology. The payer and payee simply bring their mobile devices close together for automatic detection and transaction processing, eliminating the need for physical cash exchange, card insertion/swiping, or manual check writing while significantly speeding up the transaction process
Solution Approach 2:
The patent introduces a payment service provider system as an intermediary that facilitates anonymous transactions between payer and payee. The system uses tokenized identifiers instead of direct personal information exchange, allowing the transaction to occur through a secure intermediary platform that handles authentication, fund transfer, and notification without requiring the parties to share sensitive personal data
2Reliability
If card information is entered for mobile payments, then account identification is achieved, but security risks and data exposure increase
Solution Approach 1:
The patent creates a tokenized copy of the account identifier that functions equivalently to the original card information but cannot be reverse-engineered to reveal sensitive data. Instead of transmitting actual card numbers or personal information, the system generates and uses unique transaction tokens that are valid only for the specific transaction, providing the same account identification functionality without exposing harmful personal data
Solution Approach 2:
The patent transforms the account identification parameter from sensitive personal information (card numbers, names, account details) into anonymized tokenized identifiers. This parameter change maintains the ability to uniquely identify accounts and process transactions while fundamentally altering the data format to eliminate exposure of harmful personal information throughout the transaction process
3Loss of information
If real-time notifications are implemented, then transaction status visibility is improved, but system complexity increases
Solution Approach 1:
The patent implements a feedback mechanism where the payment service provider system automatically sends real-time notifications to both payer and payee devices throughout the transaction process. The system provides feedback at key stages (transaction initiation, processing, completion, or failure), allowing users to immediately know the status of their payments without needing to manually check account balances or contact the other party, thereby reducing information loss while managing complexity through automated workflows
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
Enables fast, secure, and efficient anonymous person-to-person payments by eliminating the need for physical interaction or personal information exchange, reducing processing time and improving system security through minimal data access, while allowing real-time transaction status notifications.
Implementation Method 1
The near field communication transceiver is configured to communications with devices within a threshold range from the payer user device
Data Source
AI summary
A payer user device includes a near field communication transceiver and a digital payment application configured to detect, via the near field communication transceiver, one or more nearby payee user devices, receive, via the near field communication transceiver, an anonymous tokenized identifier and an alias of a payee user device of the one or more nearby payee user devices that provides a provider computing system information to identify an anonymous account associated with one or more of the nearby payee user devices where the anonymous tokenized identifier and the alias enable a user associated with the anonymous account to maintain anonymity with a user of the payer user device, and add the anonymous tokenized identifier to a stored list of payees on the payer user device where the anonymous tokenized identifier enables the payer user device to provide the anonymous tokenized identifier to the provider computing system for a payment.