Proximity-Based Mobile Device Payments Using Beacons
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Solution Overview
Problem
Conventional payment methods at physical locations are inconvenient, particularly for splitting bills among multiple customers, as they often require manual intervention and may not efficiently facilitate mobile device payments.
Innovation Solution
Implementing proximity-based mobile device payment techniques using beacons and mobile payment services that allow customers to check in, place orders, and settle transactions via their mobile devices, enabling automatic payment processing and bill splitting without the business's awareness of the split.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If conventional payment methods are used at physical locations, then payment transactions can be processed, but the process requires manual intervention and is inconvenient for splitting bills among multiple customers
Solution Approach 1:
The system enables customers to perform payment operations independently using their mobile devices. Customers can check in at the location, place orders, and settle transactions automatically without requiring staff intervention for bill splitting or payment processing. The mobile device serves as the self-service terminal for the customer.
Solution Approach 2:
The patent replaces the traditional mechanical cash handling system with a wireless communication-based electronic payment system. Mobile devices use wireless networks and proximity-based communication to transmit payment information to the business entity's system, eliminating the need for physical cash exchange and manual processing.
2Productivity
If mobile device payments are implemented, then payment processing efficiency is improved, but the system complexity increases
Solution Approach 1:
The patent introduces a communication infrastructure as an intermediary between the mobile devices and the business entity's payment processing system. This intermediary layer handles the complexity of wireless communication protocols, data encryption, and transaction routing, allowing the mobile devices to remain relatively simple while enabling efficient payment processing.
Solution Approach 2:
The mobile device serves multiple functions within the payment ecosystem: it acts as the customer's wallet, ordering terminal, identification device, and communication hub. By consolidating these functions into a single universal device, the system avoids the need for separate specialized hardware at each location, thereby managing overall system complexity.
3Speed
If proximity-based payment techniques are used, then transaction speed is increased, but the technology requirements and infrastructure costs increase
Solution Approach 1:
The system performs preliminary actions by having customers check in at the location before making their purchase. This pre-registration step establishes the customer's identity and associates them with the payment account in advance, so that when they make a purchase, the system can immediately process the transaction without requiring additional verification steps, thereby increasing transaction speed.
Solution Approach 2:
The patent utilizes proximity-based detection (such as Bluetooth beacons or Wi-Fi positioning) to add a spatial dimension to the payment process. By detecting the mobile device's proximity to the business location, the system can automatically trigger payment processing without requiring the customer to physically present a card or code, enabling contactless and faster transactions.
Data Source
AI summary
In some examples, by communicating with a mobile service, a user of a mobile device may settle his or her bill with a business using the mobile device. The business may be configured with a beacon to determine when the user's mobile device is near the business and a point-of-sale device to manage user orders and communicate with a mobile payment service. In response to a request by the mobile device, the mobile payment service may debit a user account associated with the mobile device for items purchased at the business. In turn, the mobile payment service may pay the business for the items purchased at the business.