Multi-function Transaction Card with NFC Peer-to-Peer Authentication

Resolve Bottlenecks,
Find Innovative SolutionsGenerate Solutions

Solution Overview

Problem

Existing contactless transaction systems face challenges in processing transactions without a card reader, especially when network access is unavailable, and rely on third-party payment services that introduce security concerns and misidentification risks.

Innovation Solution

A multi-function transaction card with NFC capabilities, capable of functioning as both a payment card and a card reader, performing online or offline data authentication, and enabling peer-to-peer cash-based transfers, eliminating the need for dedicated card readers and third-party services.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If a standard transaction card is used for contactless payments, then the card can be easily carried and used, but it cannot function as a card reader to receive payments from other cards

Engineering Contradiction:

Improvetransaction card functionalityVSAvoidcard structure

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The transaction card is designed to perform multiple functions: it can both submit payments as a passive payment device and receive payments from other transaction cards by acting as a card reader. The card includes a host controller, NFC element, and secure element that enable it to process both outgoing and incoming payment transactions, eliminating the need for separate payment card and card reader devices.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Ease of operation

If third-party payment services are used for contactless transactions, then transaction processing is simplified, but security concerns and misidentification risks increase

Engineering Contradiction:

Improvetransaction processingVSAvoidtransaction security

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The transaction card performs data authentication and verification functions itself through its host controller and secure element, rather than relying entirely on third-party payment services. The card can conduct online data authentication via network connection or offline data authentication using stored verification data, enabling it to independently verify transaction legitimacy and reduce security risks associated with external services.

Inventive Principle:

Principle #25Self-service

3Reliability

If online data authentication is performed, then transaction security is improved, but network dependency increases

Engineering Contradiction:

Improveauthentication securityVSAvoidtransaction environment flexibility

Core Design Contradiction:

ReliabilityVSAdaptability or versatility

Solution Approach 1:

The transaction card dynamically switches between online and offline data authentication modes based on network availability and transaction requirements. The host controller can perform online authentication when network connection is available, and seamlessly transition to offline authentication using pre-stored verification data when network access is unavailable, ensuring continuous operational capability across different environments.

Inventive Principle:

Principle #15Dynamics

4Adaptability or versatility

If offline data authentication is performed, then network independence is achieved, but authentication capability is reduced

Engineering Contradiction:

Improvenetwork independenceVSAvoidauthentication capability

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The transaction card pre-stores verification data and authentication algorithms in its secure element during manufacturing or initial setup. This preliminary preparation enables the card to perform complete offline data authentication when needed, verifying transaction legitimacy without requiring real-time network connection, thus maintaining authentication capability while achieving network independence.

Inventive Principle:

Principle #10Preliminary action

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 secure, cost-effective, and convenient transactions by allowing a single card to submit and accept payments, reducing reliance on third-party services and improving security through local data processing and authentication.

Implementation Method 1

a near field communication (NFC) element configured to communicate with NFC-enabled devices

Methodology Applied

Scientific EffectNear field communication (NFC): Electromagnetic Induction

Data Source

PatentUS11188908B2Multi-function transaction card

Publication Date: 2021.11.30 CAPITAL ONE SERVICES LLC

AI summary

A multi-function transaction card may determine whether to submit a first payment as a passive payment device or to receive a second payment from another transaction card. The multi-function transaction card may have a length and a width that are in accordance with a standard for transaction cards. The multi-function transaction card may selectively perform a payment transaction based on determining whether to submit the first payment or to receive the second payment. The payment transaction may be performed by providing first card data to a transaction terminal for processing when the multi-function transaction card is to submit the first payment. The payment transaction may be performed by receiving second card data from the other transaction card, and processing the second card data via online data authentication, or via offline data authentication, when the multi-function transaction card is to receive the second payment.