Push Payment Promotion Application System
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Solution Overview
Problem
Merchants face challenges in providing direct incentives for push payment transactions, receiving push payments, and communicating updated merchant locations and promotions to users, which limits their ability to encourage users to engage in push payment transactions and manage cash flow effectively.
Innovation Solution
A computing device and system that processes push payment transactions by receiving a promotion request message, retrieving merchant promotions, applying them to the transaction amount, and initiating a transfer of funds, enabling real-time merchant-funded promotions and improved transaction efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If push payment transactions are processed in real-time with full amount deduction, then payment speed and cash flow improvement are enhanced, but the ability to apply merchant promotions and discounts is lost
Solution Approach 1:
The system performs preliminary actions by calculating the promoted transaction amount before the actual push payment deduction. The merchant promotion is applied to determine the promoted transaction amount, and only then is this reduced amount deducted from the payer's account. This preliminary calculation enables both real-time processing and promotion application.
Solution Approach 2:
The system introduces an intermediary calculation step that acts as a mediator between the full transaction amount and the final deduction. The promoted transaction amount serves as an intermediate value that incorporates the merchant promotion before the actual fund transfer, allowing both speed and promotion versatility to coexist.
2Reliability
If the full transaction amount is deducted immediately in push payments, then payment reliability and cash flow are improved, but user incentive to participate in push payments is reduced
Solution Approach 1:
The system changes the parameter being deducted from the payer's account from the full transaction amount to the promoted transaction amount. By modifying this key parameter through the application of merchant promotions, the system maintains payment reliability through immediate deduction while improving user incentive through reduced payment amounts.
3Adaptability or versatility
If merchants use traditional pull payment systems with card-linked promotions, then promotion application is enabled, but payment speed and cash flow improvement are reduced
Solution Approach 1:
The system merges the advantages of both push payment systems (real-time processing, payment reliability) and pull payment systems with card-linked promotions (promotion application capability). By integrating the promotion application logic into the real-time push payment flow, the system achieves both immediate fund transfer and promotional discounts.
Data Source
AI summary
Described herein is a computing device for applying merchant promotions to a push payment transaction. The computing device includes a processor and a memory. The processor is configured to receive a promotion request message. The promotion request message includes a merchant ID and an initial push payment transaction amount. The processor retrieves, from the memory, a merchant promotion and applies the retrieved merchant promotion to an initial transaction amount to determine an updated transaction amount. The processor then transmits a promotion response message, receives an authorization message and initiates a transfer of funds. The promotion response message includes the merchant ID and the updated transaction amount. The authorization message authorizes the push payment transaction in the updated transaction amount. The funds are transferred in the updated payment amount from the user account with the originating institution to the merchant account at the receiving institution.