Remittance System for Unbanked via Payment Card Intermediary
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Solution Overview
Problem
Conventional remittance systems are often expensive and unreliable, particularly for individuals without payment card accounts, limiting their ability to send and receive money efficiently across borders.
Innovation Solution
A remittance system based on a payment card system that allows senders to initiate transactions even if the recipient lacks a payment card account, by using a unique transaction identification code to create a new payment card account for the recipient, enabling funds to be transferred through the payment card system.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If a remittance system is based on a payment card system requiring both sender and recipient to have payment card accounts, then transaction reliability is improved, but accessibility for unbanked individuals deteriorates
Solution Approach 1:
The patent introduces an intermediary mechanism where the sender's payment card account serves as a temporary holding account for funds destined for unbanked recipients. The system uses a unique transaction identification code as a mediator to link the sender's payment card account with the recipient's cash pickup location, enabling transactions without requiring the recipient to have a payment card account. This resolves the contradiction by maintaining payment card system reliability while extending accessibility to unbanked individuals through the intermediary transaction code mechanism.
2Adaptability or versatility
If conventional remittance channels are used to serve unbanked individuals, then accessibility is improved, but cost and reliability deteriorate
Solution Approach 1:
The patent extends the payment card system's functionality to serve dual purposes: it maintains its original function for banked individuals while simultaneously providing remittance services to unbanked individuals through cash pickup locations. The payment card system becomes universal, handling both electronic card-based transactions and cash-dispersion transactions to unbanked recipients. This resolves the contradiction by allowing the payment card system to serve multiple customer segments with different needs, improving accessibility without sacrificing reliability.
3Speed
If funds are pre-charged from the sender's account before transaction completion, then transaction processing speed is improved, but sender risk increases
Solution Approach 1:
The patent performs preliminary actions by placing a hold on the sender's payment card account for the remittance amount before the transaction is completed. This hold reserves the funds without actually charging them, allowing the system to prepare for rapid transaction processing while protecting the sender. The actual charge only occurs when the recipient successfully claims the funds at the pickup location. This resolves the contradiction by performing preliminary account preparation (improving speed) while maintaining sender protection through conditional charging (maintaining reliability).
Data Source
AI summary
A service provider computer receives a request for a transfer of funds from a sender to a recipient. The service provider computer makes a data record about the transaction available to a receiving financial institution. The receiving financial institution receives a visit from the recipient, issues a new payment card account to the recipient, and communicates the account number for the new account to the service provider computer. The service provider computer initiates a payment transaction in a payment card system to route the requested funds transfer from a payment card account belonging to the sender to the newly issued payment card account for the recipient.