Payment Card Remittance System Using Mobile Identification
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Solution Overview
Problem
Conventional remittance channels are labor-intensive, expensive, and inconvenient, especially for individuals without bank relationships, and they pose challenges in compliance with anti-money laundering regulations, leading to increased costs and administrative burdens.
Innovation Solution
An international remittance system based on a payment card account system that allows senders to initiate transfers using mobile telephones, with features like mobile number-based recipient identification, currency conversion estimates, and notification of fund availability, leveraging existing payment systems like MasterCard to ensure regulatory compliance and reduce costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If conventional remittance channels are used, then funds can be transferred internationally, but the transaction costs are high and the process is labor-intensive
Solution Approach 1:
The patent applies universality by enabling payment cards to serve dual functions: conventional purchases and remittance transactions. The system allows payment cards to be used for both buying goods and sending funds internationally, eliminating the need for separate remittance infrastructure and reducing operational complexity for users
Solution Approach 2:
The patent introduces an intermediary layer (the remittance processing system) that connects payment card networks with recipient bank accounts. This intermediary automates the remittance process, eliminating the need for physical cash handling and reducing transaction costs associated with manual processing and cash logistics
2Reliability
If formal commercial remittance channels are used, then funds can be transferred securely, but the process requires ongoing bank relationships and incurs additional costs
Solution Approach 1:
The patent makes payment cards universally accessible for remittance purposes, allowing individuals without traditional bank relationships to send funds using their existing payment cards. The system accepts payment cards from various issuers and routes transactions through established card networks, providing secure transfers without requiring dedicated remittance accounts
Solution Approach 2:
The patent segments the remittance function from traditional banking services by allowing payment cards to independently handle remittance transactions. This segmentation enables users to leverage their existing payment card infrastructure for secure fund transfers without needing to establish separate banking relationships with remittance providers
3Productivity
If cash is brought to remittance stores for transfer, then funds can be sent, but the sender is constrained by store operating hours and must carry cash
Solution Approach 1:
The patent enables self-service remittance transactions through automated payment card processing. Users can initiate fund transfers using their payment cards without requiring physical presence at remittance stores, eliminating constraints related to operating hours and cash handling. The system processes transactions automatically, allowing users to send funds at any time
Solution Approach 2:
The patent replaces the mechanical system of physical cash handling and in-person transactions with electronic payment card processing. This substitution eliminates the need for users to physically carry cash and visit remittance stores, replacing manual processes with automated electronic fund transfers that occur instantaneously
4Reliability
If KYC and AML compliance is implemented in formal remittance channels, then regulatory requirements are met, but significant cost and administrative burdens are placed on users
Solution Approach 1:
The patent leverages the existing KYC/AML compliance infrastructure of payment card issuers and processing networks. Since payment cards already require identity verification and anti-money laundering checks for conventional use, the same verified information is reused for remittance transactions, eliminating redundant compliance procedures and reducing administrative burdens
Solution Approach 2:
The patent merges the compliance processes for remittance transactions with the existing payment card verification systems. By combining KYC/AML checks into the unified payment card processing framework, the system avoids duplicative compliance procedures and reduces the administrative burden on both providers and users
Data Source
AI summary
A payment system receives, from a first financial institution, a request for a funds transfer. The request originates from a sender who has an account with the first financial institution. The payment system routes the funds transfer to a second financial institution for the benefit of a recipient. The payment system receives, from the second financial institution, the recipient's name and residential address.