Offline Payment Confirmation via Mobile Intermediary Encryption

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Solution Overview

Problem

Remote and small merchants lack the resources to facilitate online payment transactions, restricting them to cash-based systems and limiting their ability to accept card-based payments, which delays transaction data upload and causes issues for transaction accounts.

Innovation Solution

A system using a third-party service provider's encryption device that allows offline payment transactions by encrypting payment details, enabling immediate confirmation and processing without an active internet connection, using a cryptographic key pair for secure communication between the merchant, consumer, and processing server.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If merchants use traditional point of sale devices that require internet connection for online payments, then card-based transaction capability is improved, but device complexity and operational requirements increase

Engineering Contradiction:

Improvecard-based transaction capabilityVSAvoidcomputing system requirements

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent introduces a mobile device as an intermediary that bridges the gap between offline merchants and online payment networks. The mobile device stores encrypted account information and acts as a mediator to process card-based transactions without requiring the merchant to have complex computing systems or internet connectivity infrastructure.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent extracts the complex internet connectivity and processing requirements from the merchant's point of sale system and relocates them to the consumer's mobile device. This allows the merchant to maintain a simple offline system while still enabling card-based transactions through the mobile device's capabilities.

Inventive Principle:

Principle #2Taking out (Extraction)

2Ease of operation

If merchants operate offline without internet connection, then ease of operation and device simplicity are improved, but transaction data upload is delayed causing account issues

Engineering Contradiction:

Improveoffline operation capabilityVSAvoidtransaction data upload delay

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The patent implements preliminary action by having the mobile device capture and store transaction data locally immediately when a transaction occurs offline. The data is prepared and queued for upload, so that as soon as internet connectivity becomes available, the transaction information can be transmitted without delay to the appropriate accounts.

Inventive Principle:

Principle #10Preliminary action

3Device complexity

If merchants use cash-based payment systems, then device complexity and internet connectivity requirements are reduced, but transaction versatility and customer options are limited

Engineering Contradiction:

Improvesystem infrastructure requirementsVSAvoidpayment method acceptance

Core Design Contradiction:

Device complexityVSAdaptability or versatility

Solution Approach 1:

The patent implements universality by designing a system where a single mobile device can handle multiple payment methods (cash, credit cards, debit cards, mobile payments) and multiple transaction modes (offline and online). This multi-functional approach allows merchants to accept various payment types without requiring separate systems for each method.

Inventive Principle:

Principle #6Universality (Multi-functionality)

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 remote merchants to receive payments electronically without internet connectivity, ensuring transaction security and immediacy, allowing consumers to use various payment methods and reducing delays in transaction data upload.

Implementation Method 1

decrypting, by a processor of the encryption device, the encrypted notification message using a private key of a first cryptographic key pair

Methodology Applied

Scientific EffectCryptographic decryption:

Implementation Method 2

encrypting, by the processor of the processing server, the notification message using a public key of a first cryptographic key pair

Methodology Applied

Scientific EffectCryptographic encryption:

Data Source

PatentUS20220391897A1Method and system for blockchain transaction confirmation for small merchants

Publication Date: 2022.12.08 MASTERCARD INT INC

AI summary

A method for facilitating payment transactions for offline merchants through a third party service provider includes: receiving, by processing server, a confirmation message for a payment transaction from a computing device including a merchant identifier, consumer identifier, and transaction amount; generating, by the processing server, a notification message including the merchant identifier, consumer identifier, and transaction amount; encrypting, by the processing server, the notification message using a public key of a first cryptographic key pair; transmitting, by the processing server, the encrypted notification message to the computing device; receiving, by an encryption device, the encrypted notification message from the computing device; decrypting, by the encryption device, the encrypted notification message using a private key of the first cryptographic key pair; and displaying, by a display interfaced with the encryption device, a confirmation message including the consumer identifier included in the decrypted notification message.