Payment Network Interoperability via Incremental Data Translation
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Solution Overview
Problem
Current payment systems require consumers to convert digital currencies to a widely accepted currency for transactions, which is time-consuming and costly, and do not facilitate transactions between incompatible and unconnected payment networks.
Innovation Solution
A processing server acts as a centralized platform to facilitate payment transactions between two different payment networks by identifying incremental data required for the second network, allowing consumers to initiate a payment transaction using their preferred network without modifying existing payment networks or requiring additional actions from recipients.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If consumers convert digital currency to a widely accepted currency for transactions, then transactions become compatible with existing payment networks, but the process becomes time-consuming and costly
Solution Approach 1:
The patent introduces a payment network interoperability layer that acts as an intermediary between incompatible payment networks. This layer translates transaction protocols and enables direct cross-network transactions without requiring currency conversion, thereby maintaining payment network compatibility while eliminating the time-consuming conversion process
Solution Approach 2:
The patent segments the payment network infrastructure into modular components including protocol translators, message format converters, and standardized interface layers. This segmentation allows different payment networks to maintain their independence while enabling interoperability through standardized connection points, reducing transaction time by eliminating manual conversion steps
2Adaptability or versatility
If consumers convert digital currency to a widely accepted currency for transactions, then transactions become compatible with existing payment networks, but conversion fees and limitations increase transaction costs
Solution Approach 1:
The interoperability layer serves as a cost-effective intermediary that enables direct peer-to-peer transactions between different payment networks. By eliminating the need for intermediate currency conversion services, the system removes conversion fees and reduces transaction costs while maintaining compatibility across payment networks
Solution Approach 2:
The patent changes the fundamental parameter of transaction processing from currency conversion to protocol translation. This parameter change allows transactions to proceed directly between different payment networks using their native currencies, eliminating conversion fees and reducing overall transaction costs
3Adaptability or versatility
If a centralized processing server manages cross-network transactions, then interoperability between incompatible payment networks is enabled, but system complexity increases
Solution Approach 1:
The centralized processing server is designed with universal, multi-functional components that can handle multiple payment network protocols simultaneously. By implementing a standardized set of translation modules and protocol adapters, the server achieves cross-network transaction capability while managing complexity through code reusability and standardized interfaces
Solution Approach 2:
The patent changes the approach from creating highly customized processing logic for each payment network pair to using a standardized parameter-based translation system. This allows the server to adapt to different networks by configuring translation parameters rather than implementing complex custom logic, thereby reducing overall system complexity
4Adaptability or versatility
If existing payment networks are modified to enable cross-network transactions, then interoperability is achieved, but changes to established networks create operational disruptions
Solution Approach 1:
The interoperability layer acts as an external mediator that enables cross-network transactions without requiring any modifications to existing payment networks. By maintaining the integrity and operational stability of established networks while providing translation capabilities at the interface level, the system achieves interoperability while preserving payment network stability
Solution Approach 2:
The patent segments the interoperability functionality into a separate, standalone layer that interfaces with existing payment networks without modifying their core operations. This segmentation allows new cross-network capabilities to be added while maintaining the reliability and stability of established payment network operations
Data Source
AI summary
A method for facilitating a payment transaction between incompatible and unconnected payment networks includes: receiving, by a receiver of a processing server, a transaction request from a first computing device, the transaction request including at least a first payment network identifier and a second payment network identifier; identifying, by a processor of the processing server, a first network profile associated with a first payment network based on the first payment network identifier and a second network profile associated with a second payment network based on the second payment network identifier; determining, by the processor of the processing server, one or more incremental data values required for the second payment network based on a comparison of the first network profile with the second network profile; and transmitting, by a transmitter of the processing server, the one or more incremental data values to the first computing device.