Payment Terminal Loyalty Incentive Management
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Solution Overview
Problem
Loyalty incentive schemes are cumbersome for customers and retailers, as they require physical cards, complex mobile applications, and lack secure verification and calculation methods for credit card reductions, making it difficult for retailers to manage and for customers to redeem rewards.
Innovation Solution
An electronic payment system with integrated payment terminals that download applications for managing loyalty incentives, allowing secure transactions, redemption, and updates over-the-air, using a management server to determine and verify loyalty incentives, and a unique identifier associated with the customer's payment instrument for seamless redemption across different retailers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If physical loyalty cards are used, then customers can easily present evidence of purchases, but customers must carry physical media at all times and register with electronic systems
Solution Approach 1:
The patent replaces physical loyalty cards with their digital equivalent - a unique identifier stored on the customer's payment instrument (credit/debit card). This digital copy eliminates the need to carry separate physical loyalty cards while maintaining the same functionality of proving purchase history and redeeming rewards.
Solution Approach 2:
The patent merges the loyalty program functionality with the existing payment instrument. The unique identifier for the loyalty scheme is stored on the same payment card the customer already carries, combining two functions (payment and loyalty tracking) into a single device, thereby eliminating the need to carry separate loyalty cards.
2Ease of operation
If mobile applications are used for loyalty schemes, then customers do not need to carry physical cards, but customers must download and operate multiple applications
Solution Approach 1:
The patent makes the payment instrument serve multiple functions - it acts as both a payment method and a loyalty program identifier. The unique loyalty identifier is stored on the payment card itself, allowing the card to universally handle both transactions and loyalty tracking without requiring separate mobile applications.
Solution Approach 2:
The patent extracts the loyalty identifier from complex mobile applications and embeds it directly into the payment instrument. This removes the need for customers to download, install, and manage separate loyalty applications, as the loyalty functionality is now integrated into the existing payment card they already use.
3Adaptability or versatility
If customised loyalty schemes are implemented, then retailers can tailor rewards to their goods and services, but retailers lack time, resources or technical capability
Solution Approach 1:
The patent introduces a terminal management server as an intermediary that handles the technical complexity of loyalty scheme management. This server communicates with payment terminals and manages the unique identifiers, allowing retailers to implement customized loyalty programs without needing in-house technical expertise for system integration and management.
Solution Approach 2:
The system enables automated loyalty incentive management where the terminal management server automatically handles identifier generation, distribution, and verification. This self-service approach eliminates the need for manual setup and management by retailer staff, allowing customised schemes to be implemented without requiring dedicated technical resources.
4Adaptability or versatility
If credit card reductions are offered, then customers receive loyalty rewards, but secure verification and calculation methods are lacking
Solution Approach 1:
The patent implements a feedback loop where the terminal management server continuously verifies and updates loyalty incentive information. The server communicates with payment terminals to provide real-time verification of unique identifiers and calculate appropriate incentives, ensuring secure and accurate reward delivery while maintaining reliable records of all transactions.
Data Source
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AI summary
Methods, system and devices for managing loyalty incentive schemes are provided. In particular, payment terminals are provided that each comprise an electronic screen for displaying information to a user relating to a payment transaction, data input means, including at least one payment instrument interface for interfacing with a customer payment instrument, and at least one telecommunication module. A terminal management server is provided for managing the operation of the payment terminals. An incentive management server is also provided, for managing incentives to be applied at the payment terminals.