Universal Payment Address Routing for Secure Push Transactions
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Solution Overview
Problem
Contemporary financial transaction systems require extensive payer-side preprocessing, including authentication, authorization, and knowledge of payee payment preferences and credentials, which can lead to inefficiencies, compliance issues, and fraud risks, especially in person-to-person and metaverse transactions.
Innovation Solution
Implementing a universal payment address scheme using a payment server that maps payment credentials to unique universal resource indicators (URIs) stored on a blockchain, allowing payer agents to communicate with payee agents to facilitate seamless financial transactions without revealing sensitive account details.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If payer-side systems collect and verify payee payment credentials and preferences, then payment accuracy and compliance are improved, but preprocessing complexity and time consumption increase
Solution Approach 1:
The patent introduces a payment credential verification system that acts as an intermediary between payer and payee. This system automatically verifies payment credentials and preferences without requiring the payer's system to perform complex validation, thus maintaining payment accuracy while reducing preprocessing complexity.
Solution Approach 2:
The patent implements preliminary verification of payment credentials by the payee's system before the actual payment transaction. Payment instruments, credentials, and preferences are validated in advance and stored for future use, eliminating the need for repeated verification and reducing real-time preprocessing burden.
2Reliability
If payer systems perform extensive authentication and authorization preprocessing, then transaction security is improved, but processing time increases
Solution Approach 1:
Authentication and authorization are performed in advance by the payee's system, which pre-validates payment credentials and stores authentication tokens. This allows subsequent transactions to use cached credentials, maintaining security while dramatically reducing processing time for repeated payments.
Solution Approach 2:
The payee's system automatically performs authentication and authorization without requiring the payer's system to conduct extensive verification. The payee's system self-validates payment credentials and preferences, reducing the time burden on the payer side while maintaining transaction security.
3Reliability
If offline communication is used to exchange payment credentials, then compliance and fraud prevention are improved, but user convenience and transaction efficiency deteriorate
Solution Approach 1:
The patent replaces offline mechanical communication (phone calls, in-person exchanges) with automated electronic verification systems. The system electronically validates payment credentials and preferences through structured data exchange, maintaining fraud prevention capabilities while eliminating the need for inconvenient offline interactions.
Solution Approach 2:
An automated verification system serves as an intermediary that handles credential validation electronically. This intermediary maintains security and compliance by verifying payment instruments and credentials through structured protocols, while eliminating the need for users to engage in manual offline communication.
4Adaptability or versatility
If multiple payment instruments and credentials are supported, then payment versatility is improved, but system complexity and information management burden increase
Solution Approach 1:
The patent implements a universal payment credential verification system that can handle multiple payment instruments (bank accounts, digital wallets, cryptocurrencies) through a unified interface. The system automatically detects and validates the appropriate payment type, providing versatility without requiring the payer's system to manage the complexity of each individual payment instrument.
Solution Approach 2:
The verification system acts as an intermediary that manages the complexity of multiple payment instruments. It receives various payment credential types, automatically validates them according to their specific requirements, and standardizes the output, thereby providing payment versatility while shielding the payer's system from complexity.
5Reliability
If complete payee information (name, address, account details) is collected, then payment accuracy and fraud prevention are improved, but data privacy risks and compliance burden increase
Solution Approach 1:
The patent extracts only the essential payment credentials and preferences needed for transaction processing, rather than collecting complete personal information. The system validates payment instruments and preferences without requiring or storing unnecessary personal data like full names and addresses, thereby maintaining payment accuracy while reducing data privacy risks.
Solution Approach 2:
The verification system serves as an intermediary that validates payment credentials without exposing sensitive personal information. It verifies payment instruments and preferences through structured validation protocols, ensuring payment accuracy while minimizing the collection and storage of personal data, thus reducing privacy risks and compliance burden.
Data Source
AI summary
Payment systems and methods that facilitate electronic payer-payee financial transactions are disclosed. One aspect includes a payment server generating and maintaining a plurality of combinations, with each combination being comprised of a payment instrument from a plurality of payment instruments associated with a payee, a corresponding universal payment address, and a corresponding payment credential, in a directory comprising a block chain. A payer agent selects a specific combination to communicate with a payee agent to facilitate a financial transaction between a payer and the payee. The payment server may authenticate and process a request from the payer agent to complete the financial transaction with the help of a routing agent or a service. The financial operation is completed by the payer agent performing a payment PUSH operation to the payment server, and the payment server forwarding the payment PUSH operation to a payment instrument corresponding to a selected payment credential.