Payment Hotspot Mediator for Secure P2P Transactions
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Solution Overview
Problem
Conventional mobile payment systems require users to share sensitive personal and financial information, making transactions between untrusted or unknown parties hesitant due to security concerns.
Innovation Solution
The implementation of a networked system that allows users to generate and broadcast a payment hotspot (payspot) within a local region, enabling secure person-to-person payments without exchanging user-identifying information, using a unique identifier or geo-fence for access and facilitating transfers through a payment provider server.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional mobile payment systems are used, then payments can be made between users, but users must share sensitive personal and financial information which creates security concerns
Solution Approach 1:
The patent introduces a payment hotspot as an intermediary mechanism that enables fund transfers without direct exposure of personal information. The hotspot acts as a temporary, location-based access point that mediates between the payer and payee, allowing payments to be initiated through geo-fencing technology rather than direct information exchange.
Solution Approach 2:
The patent extracts the sensitive personal information requirement from the payment process. By using payment hotspots with unique identifiers and geo-fenced locations, the system separates the authentication mechanism from personal data, allowing payments to occur based on location verification rather than information sharing.
2Reliability
If personal information is not shared, then security is improved, but the ability to facilitate payments between unknown parties is reduced
Solution Approach 1:
The payment hotspot serves as a mediator that enables trustless transactions. By using location-based authentication through geo-fencing, the system facilitates payments between unknown parties without requiring personal information sharing, thus maintaining both security and adaptability.
Solution Approach 2:
The patent replaces the traditional mechanical system of information-based authentication with a location-based system. Instead of verifying identity through personal data exchange, the system uses geo-fenced location verification to establish payment eligibility, enabling versatile payments while maintaining security.
3Ease of operation
If a payment hotspot system is implemented, then information sharing is eliminated, but system complexity increases due to geo-fencing and hotspot management
Solution Approach 1:
The payment hotspot system is integrated into existing mobile devices, making the complex geo-fencing and hotspot management capabilities universally available through standard smartphones. This multi-functionality approach allows the system to provide advanced security features without requiring specialized hardware.
Solution Approach 2:
The system enables users to spontaneously create and manage payment hotspots without requiring centralized coordination or complex administrative infrastructure. Each user can independently generate hotspots and manage their own payment receiving capabilities, simplifying the overall system architecture despite the advanced features.
Data Source
AI summary
Systems and methods are provided for facilitating payments between users of the system such as person-to-person payments using a payment hotspot. A payment hotspot or payspot may be generated by a first user device of a first user to facilitate a transfer of funds between the first user and the second user. The payspot may be a virtual payment portal that allows secure payment between the users without either of the users having to provide identifying information to the other user. The payspot may be accessed by the second user based on the proximity of a second user device of the second user to the first user device or the first user may provide an identification code of the payspot to the second user. The second user may access the payspot by communicating with a payment server with the second user device, through the first user device.