Payment Terminal Anonymization for Secure Loyalty Management
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Solution Overview
Problem
Small, independent merchants lack affordable and secure solutions for managing customer loyalty programs, as they often require extensive customer information and expensive third-party infrastructure, and existing technologies are not suitable for anonymous data processing.
Innovation Solution
A method for processing anonymized payment data within a payment terminal using a secure processor to generate anonymous identification data, which is then transmitted to a loyalty data processing application, allowing for loyalty management without personal customer information and enabling simple, cost-effective loyalty program management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If traditional paper-based loyalty cards are used, then implementation cost is low and simplicity is maintained, but customer loyalty management effectiveness is limited and modern communication capabilities are not utilized
Solution Approach 1:
The payment terminal automatically performs loyalty program operations without requiring separate loyalty card infrastructure. The terminal self-manages customer identification, transaction recording, and loyalty point calculation using existing payment data, eliminating the need for separate loyalty management systems while maintaining low implementation costs.
Solution Approach 2:
The payment terminal is designed to perform multiple functions: it processes payments, manages loyalty programs, and communicates with customers through integrated channels. This multi-functionality allows small merchants to access modern loyalty management capabilities without requiring separate dedicated systems, thereby improving versatility while keeping costs low.
2Adaptability or versatility
If modern loyalty management solutions with extensive customer information collection are implemented, then loyalty program functionality is enhanced, but security risks increase and data protection requirements are heightened
Solution Approach 1:
The system extracts only the essential data elements needed for loyalty management from payment transactions. Instead of collecting extensive customer information, it uses minimal identifiers and transaction data that are already present in the payment process, thereby reducing security risks while maintaining loyalty program functionality.
Solution Approach 2:
The payment terminal acts as an intermediary that processes and anonymizes customer data before storing it in the loyalty database. This intermediary layer protects customer privacy by removing personally identifiable information while retaining sufficient data for loyalty tracking, thus reducing security risks associated with data collection.
3Adaptability or versatility
If third-party loyalty management platforms are used, then loyalty program capabilities are improved, but implementation cost increases and system complexity increases
Solution Approach 1:
The loyalty management functionality is merged directly into the existing payment terminal system. By combining payment processing and loyalty management into a single integrated system, the solution eliminates the need for separate third-party platforms and complex inter-system communications, thereby reducing system complexity while maintaining enhanced loyalty program capabilities.
Solution Approach 2:
The payment terminal independently manages loyalty program operations without requiring external third-party platform support. The terminal autonomously handles customer identification, transaction processing, and loyalty point management, eliminating dependency on complex external systems and reducing overall system complexity.
4Reliability
If anonymous data processing is implemented, then customer privacy is protected and security is improved, but data processing complexity increases
Solution Approach 1:
The payment terminal automatically performs anonymization of customer data as part of its standard operation. The terminal self-manages the conversion of personally identifiable information into anonymous identifiers without requiring additional manual intervention or complex external processing systems, thereby maintaining data security while controlling processing complexity.
Data Source
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AI summary
The invention relates to a method for processing at least one piece of payment means data, the method being implemented within a payment terminal comprising a secure processing processor and a secure processing memory. Such a method comprises: - a step of obtaining at least one piece of data representative of a payment means used to carry out a transaction, termed the payment means data; - a step of anonymising the payment means data, producing a piece of current anonymous identification data; and - a step of transmitting said piece of current anonymous identification data to an application for processing loyalty data.