Processing Server for Digital Token Transfer to Physical Payment Cards

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Solution Overview

Problem

Current payment systems lack the capability to efficiently transfer and utilize digital tokens on physical payment cards for transactions at point of sale (POS) systems, limiting their functionality and integration with central bank-issued digital currencies.

Innovation Solution

A system and method for transferring digital tokens from a central bank to physical payment cards, utilizing a processing server to receive and transfer these tokens, which are then verified and used for transactions, incorporating digital signatures and cryptographic keys for security, and recorded on a blockchain network for transparency and validation.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If digital tokens are transferred to physical payment cards for POS transactions, then the functionality and integration with central bank-issued digital currencies is improved, but the system complexity increases

Engineering Contradiction:

Improvefunctionality integrationVSAvoidsystem complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

A processing server acts as an intermediary between the central bank's digital token system and the physical payment card infrastructure. The server receives digital tokens from the central bank, processes them through cryptographic verification, and transfers them to the payment card system, thereby bridging two complex systems without requiring direct integration between them

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system is divided into distinct functional modules: the central bank's token issuance system, the processing server for token management and verification, and the physical payment card system for transactions. This segmentation allows each component to be developed and maintained independently while achieving overall system integration

Inventive Principle:

Principle #1Segmentation

2Productivity

If digital tokens are used on physical payment cards, then transaction capability is improved, but security requirements and verification complexity increase

Engineering Contradiction:

Improvetransaction capabilityVSAvoidverification complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

Digital tokens are pre-issued and verified by the processing server before being transferred to physical payment cards. The server performs cryptographic key generation, digital signature creation, and token validation in advance, so that during actual POS transactions, only simple verification is needed, enabling fast transactions without complex real-time verification

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

Traditional manual verification processes are replaced with automated cryptographic verification systems. The processing server uses digital signatures and public key infrastructure to automatically verify token authenticity, replacing what would otherwise require complex manual security procedures and enabling efficient automated transactions

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Data Source

PatentUS12131326B2Method and system for transferring digital tokens to and from a physical card

Publication Date: 2024.10.29 MASTERCARD INT INC

AI summary

A method and system are disclosed for transferring digital tokens to and from a physical payment card. The method includes: receiving, on a processing server, a plurality of digital tokens issued from a central bank; and transferring, from the processing server, the plurality of digital tokens to the physical payment card, the physical payment card configured to be used with a point of sale (POS).