Offline Payment Token Verification Without Network
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Solution Overview
Problem
Existing payment systems are unable to validate offline transactions when both user and merchant devices are disconnected from the network, rendering offline payment transactions inoperable in such scenarios.
Innovation Solution
A method and system that enable offline payment transactions by generating an electronic token with a user device, which includes a payment account identifier, an offline balance amount, and a digital certificate, and a decryption key with a merchant device, allowing the transaction to be verified and executed without network connectivity, as long as the token and key remain valid.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If offline payment transaction is performed without network connection, then transaction speed and user convenience are improved, but transaction validation and security are compromised
Solution Approach 1:
The system performs preliminary actions by generating electronic tokens with digital certificates and decryption keys before the offline transaction occurs. The token is created with embedded authentication data, and the decryption key is pre-distributed to the merchant device, enabling validation to occur locally without network connection during the actual transaction
Solution Approach 2:
The electronic token acts as an intermediary carrier that transfers payment information and authentication data from the user device to the merchant device. The digital certificate within the token serves as a mediator that enables trust verification without direct network connection, allowing the merchant to validate the transaction locally
2Reliability
If electronic token with digital certificate is used for offline validation, then transaction security is improved, but device complexity and key management are increased
Solution Approach 1:
The system extracts the authentication and validation functionality from the network infrastructure and embeds it directly into the electronic token and merchant device. The digital certificate and decryption key are extracted from the online payment system and stored locally, enabling the merchant device to perform validation independently without relying on network-connected authentication servers
Solution Approach 2:
The merchant device performs self-service validation by using the pre-stored decryption key to verify the digital certificate in the electronic token locally. The system enables the merchant to validate transactions independently without requiring external authentication services, making the validation process autonomous and self-sufficient
Data Source
AI summary
Embodiments provide methods and systems for performing an offline payment transaction in absence of network. In an embodiment, a communication channel is established between a merchant device and a user device for performing the offline payment transaction. The merchant device receives an electronic token from the user device. The electronic token includes an identifier for a payment account of a user, an offline balance amount associated with the payment account and a digital certificate representing authentication of the offline balance amount. The electronic token has a validity of a first threshold time period. The electronic token is verified with a decryption key available with the merchant device. The decryption key also has a validity of a second threshold time period. After a successful verification of the electronic token, the offline payment transaction is executed without connecting to a payment network, while the electronic token and the decryption key are valid.