Offline Payment Authorization via Mobile Intermediary
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Solution Overview
Problem
Point-of-sale devices without network connectivity are unable to communicate payment information, receive payment confirmations, or verify payment accounts, limiting their ability to process electronic payments, which is a disadvantage in an increasingly digital payment landscape.
Innovation Solution
A system that enables secure communication of payments between mobile devices and point-of-sale devices using short-range communications such as NFC, allowing transactions to be completed even when the point-of-sale device is not connected to a network, through a clearing house that generates and transmits payment authorizations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If point-of-sale devices are disconnected from the network, then device autonomy and user convenience are improved, but the ability to communicate payment information and verify accounts deteriorates
Solution Approach 1:
The patent introduces a mobile device as an intermediary between the point-of-sale device and the network. The mobile device stores payment account information and communicates with the point-of-sale device via short-range communication when the device is offline, while also connecting to the network to verify payments, thus bridging the information gap without requiring continuous network connectivity at the point-of-sale device
Solution Approach 2:
The system performs preliminary actions by storing payment account information and authorization data in advance on the mobile device. This allows the point-of-sale device to process payments using pre-stored information when disconnected from the network, eliminating the need for real-time network communication at the moment of transaction
2Adaptability or versatility
If point-of-sale devices operate without network connectivity, then device independence and competitive advantage are improved, but payment verification capability deteriorates
Solution Approach 1:
The mobile device serves as a mediator that carries verified payment account information from the network to the point-of-sale device. The mobile device communicates with the network to obtain valid payment authorizations and transmits this information to the point-of-sale device via short-range communication, enabling offline verification without compromising reliability
Solution Approach 2:
Payment account verification is performed in advance when the mobile device connects to the network. The verified payment information is then stored and made available for offline transactions, ensuring that verification reliability is maintained through pre-authentication before network disconnection occurs
3Productivity
If short-range communication is implemented for offline payments, then transaction capability without network is improved, but system complexity increases
Solution Approach 1:
The mobile device acts as an intermediary that consolidates the complexity of managing multiple communication protocols and payment verification processes. It handles the short-range communication with the point-of-sale device while separately managing network connectivity and verification, thus enabling offline transactions without significantly increasing the complexity of individual components
Solution Approach 2:
The mobile device performs multiple functions including storing payment information, communicating with point-of-sale devices via short-range communication, connecting to the network for verification, and managing transaction data. This multi-functionality consolidates complexity into a single device rather than requiring the point-of-sale device to handle all these functions independently
Data Source
AI summary
For communicating payments, a mobile device reads a point-of-sale code from a point-of-sale device. The mobile device uploads the point-of-sale code to the clearing house. The clearing house downloads a purchase menu to the mobile device. The clearing house generates a payment authorization comprising an authorization code and a transaction amount. The clearing house determine whether the point-of-sale device is in communication with the clearing house. In response to the point-of-sale device being in communication with the clearing house, the clearing house communicates the payment authorization to the point-of-sale device at a device address determined from the point-of-sale code. In response to the point-of-sale device not being in communication with the clearing house, the clearing house communicates the payment authorization through the mobile device to the point-of-sale device. The point-of-sale device completes a transaction for the transaction amount at the point-of-sale device.