Offline Mobile Payment Authorization via Preauthorization Codes
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Solution Overview
Problem
Mobile devices are unable to process transactions when they cannot access the internet, as they typically require communication with a mobile wallet provider to initiate or authorize transactions, leading to transaction failures.
Innovation Solution
A system and method that allows mobile devices to process transactions offline by using a transaction system that communicates with both financial institutions, enabling payment requests to be sent and authorized without internet access, using a preauthorization code and encrypted transaction codes to facilitate real-time payments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If mobile device requires internet access to communicate with mobile wallet provider for transaction authorization, then transaction security is improved, but transaction availability deteriorates when internet is unavailable
Solution Approach 1:
The system performs preliminary actions by storing authorization credentials and transaction data in the mobile device before offline mode begins. The mobile wallet application pre-loads necessary security certificates, public keys, and transaction templates that can be used without internet connectivity. This allows the device to execute authorized transactions offline while maintaining security through pre-established cryptographic credentials.
Solution Approach 2:
The system introduces an intermediary component - a secure offline transaction processing module that acts as a mediator between the user, the mobile wallet application, and the financial institution. This intermediary can validate transactions locally using stored credentials and later synchronize with the financial institution when connectivity is restored, thereby bridging the gap between offline operation and centralized security verification.
2Adaptability or versatility
If mobile device stores transaction data locally for offline processing, then transaction availability is improved, but device complexity increases
Solution Approach 1:
The system segments the wallet functionality into distinct modules: an offline transaction initiation module that operates locally on the mobile device, and an online synchronization module that communicates with the financial institution. This segmentation allows the complex offline processing to be isolated in a dedicated module with simplified interfaces, reducing the apparent complexity for the user while enabling sophisticated local transaction handling.
Solution Approach 2:
The mobile device is empowered with self-service capabilities to perform transaction validation, encryption, and local processing without requiring constant external assistance. The device autonomously manages its own transaction queue, cryptographic operations, and synchronization status, reducing the need for complex external coordination infrastructure and simplifying the overall system architecture.
Data Source
AI summary
A method being implemented via execution of computing instructions configured to run at one or more processors and stored at one or more non-transitory computer-readable media. The method can include receiving a transaction amount and a preauthorization code from a first entity. The preauthorization code can include a preauthorization amount, an expiration time, and a digital signature. The transaction amount is for a transaction authorized by a user of a mobile device at a point-of-sale terminal of the first entity. The transaction amount is less than or equal to the preauthorization amount. The mobile device received the preauthorization code and stored the preauthorization code in the mobile device while the mobile device was in data communication with a mobile wallet provider. The mobile device provided a transaction code to the point-of-sale terminal while the mobile device was unable to communicate with the mobile wallet provider. The transaction code includes the preauthorization code, a transaction identifier for the transaction, and the transaction amount. The method also can include verifying the preauthorization code using the digital signature of the preauthorization code. The method additionally can include sending an approval for the transaction to the first entity in real-time while the user remains at the point-of-sale terminal of the first entity. Other embodiments are described.