Embedded Secure Element for Contactless Fund Transfer
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Solution Overview
Problem
Conventional point-of-sale (POS) systems for fund transfer are complex, costly, and limited to specific types of transactions, often requiring card swiping and lacking in security, speed, and efficiency.
Innovation Solution
A system and method utilizing a secure element embedded in an entity device for short-range communication with user devices, enabling secure, contactless fund transfers through Near Field Communication (NFC) or radio-frequency identification technology, allowing transactions in both open and closed loop systems without the need for bulky POS implementations.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional POS systems are implemented for fund transfer, then fund transfer functionality is provided, but system complexity and implementation costs increase
Solution Approach 1:
The patent extracts the essential fund transfer functionality from complex conventional POS systems and implements it using only a mobile device with NFC capability and a simple entity device with secure element. This removes unnecessary complexity while retaining core payment functionality, allowing fund transfers without bulky POS implementations.
Solution Approach 2:
The mobile device serves multiple functions: it acts as both the payment card (via NFC virtual card) and the communication interface. The entity device with secure element provides universal functionality for both open loop and closed loop transactions, eliminating the need for separate specialized equipment.
2Reliability
If conventional POS systems are implemented for fund transfer, then fund transfer functionality is provided, but implementation costs increase
Solution Approach 1:
The patent replaces expensive, durable POS hardware with inexpensive mobile devices that users already possess. The entity device is also simplified and cost-reduced compared to traditional POS terminals, while maintaining secure transaction capabilities through the secure element.
Solution Approach 2:
The patent uses virtual copies of card information stored in the mobile device's secure element, eliminating the need for physical cards and reducing hardware costs. The NFC communication transmits digital representations of payment data instead of requiring physical card readers.
3Reliability
If card swiping is required for transactions, then fund transfer can be performed, but user convenience decreases and transaction time increases
Solution Approach 1:
The patent replaces the mechanical card swiping action with contactless NFC communication. The mobile device communicates wirelessly with the entity device through near-field communication, eliminating the need for physical card insertion or swiping motions.
Solution Approach 2:
The card information is pre-loaded into the mobile device's secure element beforehand, allowing instant transaction initiation without needing to physically handle or insert a card. The NFC payment is ready to execute immediately when brought near the entity device.
4Reliability
If conventional POS systems are used, then certain transaction types can be processed, but system versatility is limited
Solution Approach 1:
The entity device with secure element is designed to handle multiple transaction types including open loop, closed loop, and offline transactions. The mobile device's NFC interface can communicate with various entity devices, providing versatility across different transaction scenarios without requiring specialized equipment for each type.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Facilitates secure, reliable, and cost-effective contactless fund transfers, eliminating the need for physical card reading and reducing implementation costs, while supporting offline and online transactions.
Implementation Method 1
a secure element embedded within the entity device such that the secure element enables a short range communication with the user computing device
Data Source
AI summary
The present invention relates to a system for transfer of fund from a user to an entity. The user may be associated with a user computing device and the entity may be associated with an entity device. The entity device may include a secure element embedded within the entity device such that the secure element may enable short range communication with the user computing device or physical card for a secure and contactless fund transfer. The system may include a simple and convenient mode of the contactless fund transfer such as, for example, a tap-to-x transaction model, tap-to-pay for fund transfer, and tap-to-go for transit/access. Each operation pertaining to the fund transfer may be processed through the entity device that ultimately connects to a service provider. The secure element enables the fund transfer to be secure, authentic and confidential.