Processor-Enabled Banknotes for Cash and Cashless Payments
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Solution Overview
Problem
Existing banknotes lack the capability for both cash and cashless transactions, and digital payment systems require personal accounts, limiting their accessibility and efficiency.
Innovation Solution
A banknote equipped with a processor, memory, and security element that includes a unique identification number and cryptographic key, enabling both cash and cashless transactions through a payment method involving cryptograms and communication interfaces.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If banknotes are used for cash transactions, then accessibility and simplicity are improved, but efficiency and capability for distant transactions deteriorate
Solution Approach 1:
The banknote is equipped with a security element containing a processor and communication interface, enabling it to perform both traditional cash transaction functions and electronic payment functions. The security element can generate cryptograms for authentication and communicate with terminals, making the banknote universally applicable for both contact and contactless payments.
Solution Approach 2:
The invention merges the physical banknote with electronic payment capabilities by integrating a security element into the banknote structure. This combines the tangible cash form with digital authentication mechanisms, allowing the banknote to serve as both a physical medium and an electronic payment instrument simultaneously.
2Productivity
If digital payment systems are implemented, then transaction efficiency and capability for distant transactions are improved, but accessibility and requirement for personal accounts worsen
Solution Approach 1:
The banknote itself performs authentication and payment authorization functions through its integrated security element. The security element generates cryptograms and communicates with terminals autonomously, eliminating the need for external personal accounts or additional authentication devices. The banknote serves its own authentication needs, making the system accessible to anyone with the banknote.
3Adaptability or versatility
If security elements with processors are added to banknotes, then functionality and security are improved, but device complexity increases
Solution Approach 1:
The security element is integrated within the banknote structure, with the processor and communication interface nested within the banknote's physical form. This nested arrangement allows the complex electronic components to be contained within the familiar banknote format, minimizing the increase in perceived complexity while maximizing functionality.
Data Source
AI summary
A banknote includes a processor and a memory. An identification number of the banknote is stored in the memory of the security element and identifies an anonymous banknote account managed by a central bank issuing the banknote and individually assigned to the corresponding banknote. A banknote-specific cryptographic key is stored in a protected memory area of the memory. A payment method executed with the banknote receiving a payment request for a payment with the banknote, generating a payment-specific cryptogram for authorising the payment with the banknote, wherein the cryptogram is generated from the identification number of the banknote and a payment-specific code as input values using the banknote-specific cryptographic key, and sending a payment authorisation including the payment-specific cryptogram.