Payment Service Merchant Connection via Transaction Data Analysis
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Solution Overview
Problem
Current systems lack an effective method to connect merchants based on customer transaction patterns, failing to provide timely and relevant recommendations for subsequent transactions.
Innovation Solution
A payment service performs data analysis on transaction information to identify relationships between merchants, generating connections based on customer behavior and transaction data, and sends recommendations to both merchants and customers for subsequent transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If a payment service processes transactions between merchants and customers, then transaction processing capability is improved, but the ability to connect merchants based on customer behavior patterns deteriorates
Solution Approach 1:
The payment service performs data analysis on transaction information to identify relationships between merchants and generates connections based on customer behavior patterns in advance. This preliminary analysis enables the system to proactively provide relevant merchant recommendations before customers initiate new transactions, resolving the contradiction by preparing connection data ahead of time rather than reacting after transaction processing
Solution Approach 2:
The patent introduces an intermediary data analysis layer between transaction processing and merchant connection. This intermediary component analyzes transaction information to identify relationships between merchants, acting as a mediator that transforms raw transaction data into actionable merchant connections and recommendations, thereby enabling merchant connection capability without compromising transaction processing efficiency
2Measurement precision
If the payment service analyzes transaction data to generate merchant connections, then merchant recommendation relevance is improved, but system complexity deteriorates
Solution Approach 1:
The payment service performs multiple functions using the same transaction data infrastructure: it processes transactions, analyzes transaction information for patterns, identifies relationships between merchants, and generates recommendations. By making the payment service multi-functional rather than adding separate specialized systems, the patent improves recommendation relevance while minimizing the increase in overall system complexity
Solution Approach 2:
The system performs self-service by automatically analyzing its own transaction data to identify merchant relationships and generate connections. Rather than requiring external complex analysis systems, the payment service leverages its existing data access and processing capabilities to autonomously generate merchant recommendations, improving relevance without proportionally increasing system complexity
3Ease of operation
If the system provides real-time merchant recommendations, then customer experience is improved, but data processing time deteriorates
Solution Approach 1:
The system performs data analysis and generates merchant connections in advance based on transaction patterns, so that when a customer initiates a transaction, the recommendations are already prepared or can be quickly retrieved. This preliminary action eliminates the need for real-time analysis during the transaction moment, improving customer experience without adding significant data processing time
Solution Approach 2:
The system analyzes transaction information to identify relationships between merchants, focusing on key patterns and relationships rather than exhaustive analysis of all possible data points. By performing partial analysis on the most relevant transaction attributes, the system generates timely merchant recommendations that improve customer experience while avoiding the time cost of complete comprehensive analysis
Data Source
AI summary
Techniques and arrangements for performing data analysis in order to generate connections between merchants. For instance, a payment service may determine, based at least in part on transaction information, that a first customer conducted a first transaction at a first merchant followed a subsequent transaction at a second merchant. The payment service may further determine that a second customer conducted a second transaction at the first merchant followed by a subsequent transaction at a third merchant, Based on transaction information associated with the first transaction and the second transaction, the payment service may create a buyer profile including the first customer and second customer. Upon the payment service receiving a request to process a third transaction between the first merchant and the second customer, the payment service can generate a recommendation that the second customer conduct a subsequent transaction to the third transaction at the second merchant rather than the third merchant. The payment service can then send a electronic communication that includes the recommendation to the first merchant or the second customer.