Open Payment Network Standardized POS Interface
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Solution Overview
Problem
Digital wallets face challenges in mainstream adoption due to limited retail acceptance, high barriers for new providers to integrate with point-of-sale systems, and lack of standards for integration and settlement processes, leading to only major providers being able to operate effectively.
Innovation Solution
The Open Payment Network (OPN) enables a wide range of retailers to accept payments from various sources, including digital wallets, by providing a standardized platform for integration, settlement, and reconciliation, allowing users to pay with multiple currencies and securely complete transactions through a third-party verification platform.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If digital wallets use proprietary integration methods with point-of-sale systems, then major providers can maintain control and security, but new providers face high barriers to entry and limited retail acceptance
Solution Approach 1:
The patent creates a universal point-of-sale interface that can handle multiple payment types (digital wallets, credit cards, cash) through a single standardized system. The POS terminal is designed to communicate with any digital wallet provider through standard protocols, making the system universally compatible while maintaining secure transaction processing. This resolves the contradiction by allowing the POS to be both secure (reliable) and compatible with multiple providers (adaptable).
Solution Approach 2:
The patent introduces a standardized communication layer and message format that acts as an intermediary between digital wallet providers and the point-of-sale system. This intermediary layer translates various provider-specific protocols into a common format, enabling new providers to integrate without requiring proprietary customizations to the POS system. This maintains security through standardized validation while enabling broad provider compatibility.
2Ease of manufacture
If digital wallet providers integrate directly with each point-of-sale system, then integration can be customized for specific providers, but the complexity of integration increases and settlement processes become difficult to standardize
Solution Approach 1:
The patent segments the payment system into distinct functional layers: the point-of-sale interface layer, the communication protocol layer, and the settlement layer. Each layer has standardized interfaces that simplify integration. The POS terminal handles only the basic transaction initiation through standardized messages, while provider-specific logic is separated into the communication layer. This segmentation reduces integration complexity for new providers while maintaining system coherence.
Solution Approach 2:
The patent implements a universal message format and communication protocol that the point-of-sale system uses to interact with all digital wallet providers. This single standardized interface handles multiple functions (authentication, transaction initiation, settlement) without requiring provider-specific customizations. New providers can integrate by implementing the standard protocol, dramatically simplifying the integration process while the system maintains the capability to handle complex transaction types.
3Adaptability or versatility
If a standardized platform is implemented to enable multiple providers, then retail acceptance and provider accessibility improve, but the complexity of managing multiple applications and data stores increases
Solution Approach 1:
The patent merges the functionality of multiple provider-specific data stores and application logic into a single standardized platform architecture. The point-of-sale system maintains one unified configuration that supports multiple providers through standardized interfaces, rather than requiring separate integration pathways for each provider. This consolidation reduces the operational complexity of managing multiple applications while enabling broad retail acceptance through the unified standard.
Data Source
AI summary
Systems and methods discussed herein relate to an Open Payment Network that allows a plurality of retailers to provide goods and services to users of applications including e-wallets and allows the users to pay for purchases using currency including digital currency earned as credits, points, or other rewards as well as traditional bank-backed currency in the form of cash, credit, or debit. In addition, a user who has registered for the system through a profile or using an individual application or applications can query the system and obtain a quote to determine how much value currency from a variety of sources (e.g., applications) has towards the purchase of a particular good or service at a real or virtual retail location.