Post-Purchase Tender Switching for Frictionless Credit Acquisition
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Solution Overview
Problem
Existing methods for offering credit at the point of purchase are often disrupted by factors such as lack of associate prompting or customer reluctance, especially in frictionless retail environments, leading to missed opportunities for credit acquisition.
Innovation Solution
A framework is provided to implement post-purchase tender switches, allowing customers to apply for or switch to a preferred payment instrument after a transaction, using machine learning algorithms to determine eligibility and incentives, and contacting customers via various methods.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If credit offers are made at the point of purchase, then credit acquisition opportunities are created, but the process is disrupted by lack of associate prompting and customer reluctance
Solution Approach 1:
The system enables customers to autonomously receive and respond to credit offers through automated communications (text messages, emails, push notifications) without requiring associate intervention. Customers can apply for credit and switch payment instruments through self-service interfaces, eliminating the need for associate prompting while maintaining ease of operation.
Solution Approach 2:
The system implements feedback loops where customer responses to credit offers are automatically processed and communicated back to customers. The system tracks customer preferences and behavior patterns to refine offer delivery timing and content, improving credit acquisition while respecting customer choices and maintaining convenience.
2Productivity
If post-purchase tender switches are implemented, then credit acquisition opportunities are enhanced, but system complexity increases
Solution Approach 1:
The system introduces an intermediary payment instrument switching platform that mediates between customers, retailers, and credit providers. This intermediary layer handles the complexity of credit verification, payment switching, and coordination automatically, allowing credit acquisition enhancement without proportionally increasing overall system complexity.
Solution Approach 2:
The system creates a multi-functional platform that handles credit offers, tender switching, payment processing, and customer communication through a unified framework. By consolidating these functions into a single system, the patent avoids the complexity that would arise from multiple separate systems working together.
3Measurement precision
If machine learning algorithms are used to identify eligible customers, then offer targeting precision is improved, but computational requirements increase
Solution Approach 1:
The system performs preliminary customer segmentation and pre-screening using machine learning algorithms before making credit offers. By pre-identifying eligible customers and preparing targeted offer profiles in advance, the system achieves high targeting precision while reducing real-time computational requirements during the actual offer delivery process.
Data Source
AI summary
Disclosed embodiments may provide a framework to implement post-purchase tender switches. For example, following a transaction made with a particular payment instrument, a customer may be offered the ability to apply for a preferred payment instrument and/or to switch his or her tender type to the preferred payment instrument for the previous transaction.