Real-Time Digital Cash Management via API Intermediation
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current payment techniques for small businesses and microbusinesses are inefficient, with many not using software for invoicing and relying on paper invoices, cash, or expensive digital payment methods, leading to significant fees and delayed payment processing.
Innovation Solution
A real-time digital cash management solution is provided through a bill presentment and payment system that exposes a real-time electronic bill presentment and payment system to business financial institutions and accounting software providers via an API, allowing for self-service registration, invoicing, and real-time payment processing, reducing the need for intermediaries and facilitating faster payments.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of time
If small businesses use current payment techniques (ACH, card transactions), then payment processing can be completed, but significant fees are incurred and payment delivery is delayed (5 days for ACH, 2 days for card)
Solution Approach 1:
The patent introduces a real-time payment system as an intermediary between businesses and financial institutions, replacing traditional ACH and card networks. This mediator enables direct, real-time fund transfers without relying on the fee-charging infrastructure of existing payment processors, thereby reducing both time and cost.
Solution Approach 2:
The patent replaces the mechanical batch-processing systems of ACH networks with an electronic real-time payment infrastructure. By substituting the traditional batch clearing mechanism with continuous electronic fund transfers, the system achieves immediate payment delivery without the delays and fees associated with legacy systems.
2Loss of energy
If small businesses use paper invoices and manual payment collection, then no software fees are incurred, but the process is inefficient and costly in other ways
Solution Approach 1:
The patent enables businesses to self-serve by providing them with mobile applications and online portals that allow them to generate invoices, track payments, and manage their own accounts without requiring expensive third-party accounting software. This self-service approach eliminates software licensing fees while maintaining high processing efficiency.
Solution Approach 2:
The patent creates a universal platform that combines invoicing, payment collection, and cash management functions into a single system accessible through mobile devices and web browsers. This multi-functional platform replaces the need for separate specialized software applications, reducing costs while improving productivity.
3Ease of operation
If small businesses use accounting software solutions like QuickBooks, then invoicing capability is provided, but significant fees are charged and the system acts as a master merchant requiring complex transactions
Solution Approach 1:
The patent extracts the essential invoicing and payment functionality from complex accounting software packages and delivers it as a standalone, simplified service through mobile applications. By separating these core functions from full-featured accounting suites, the system eliminates unnecessary software costs and associated transaction fees while maintaining ease of operation.
4Ease of operation
If customers access bank bill pay websites to pay small businesses, then payment can be initiated, but the bank still cuts paper checks at the back end causing delays
Solution Approach 1:
The patent replaces the mechanical paper check issuance process with an electronic real-time fund transfer system. When customers initiate payments through the system, funds are transferred electronically and immediately, eliminating the back-end paper check generation and mailing delays that plague traditional bank bill pay services.
Data Source
AI summary
A real-time electronic bill presentment and payment system of a bill presentment and payment system (BPPS) provider is exposed to at least one of a business financial institution and an accounting software provider via an API. The BPP provider facilitates the institution or software provider providing a real-time electronic bill presentment and payment mobile application to a business. The BPPS obtains, via the API, from the institution or software provider, registration information relevant to the business. The real-time system populates a biller directory database with the registration information. No action, other than the facilitating, is required by the BPPS provider for the institution or software provider to obtain the registration information. In some instances, provision is made for loss of connectivity between the institution or software provider and the business and/or for alerts to the business.