Sensor-Based Data Tokenization for Frictionless Secure Onboarding
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Solution Overview
Problem
Users are deterred from secure electronic transaction processing due to the time-consuming onboarding process required with token service providers, leading to potential security risks and hindered token utilization.
Innovation Solution
A network of sensors, such as IoT devices, automatically detects user intent to transact and issues tokens without user input, onboard users with a token service provider by securely retrieving financial data and generating tokens based on user preferences and merchant compatibility.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual onboarding with token service provider is required, then security is improved through proper token issuance, but user convenience and transaction speed deteriorate due to time-consuming onboarding process
Solution Approach 1:
The system performs automatic tokenization in the background without requiring user action. Sensors detect transaction intent and the system automatically retrieves financial data, generates tokens, and completes onboarding without user input, making the security process self-executing and transparent to the user
Solution Approach 2:
The system performs tokenization and onboarding actions before the actual transaction occurs. By detecting transaction intent in advance through sensors and pre-processing the token issuance, the system eliminates the need for manual onboarding at the point of transaction, improving both security and convenience
2Reliability
If manual onboarding process is required, then proper token issuance is ensured, but transaction processing time increases due to onboarding latency
Solution Approach 1:
The system detects transaction intent through sensors and performs tokenization in advance before the actual transaction occurs. This preliminary automatic token issuance eliminates onboarding latency at the point of transaction while ensuring proper security protocols are followed
Solution Approach 2:
The system automatically executes the entire token issuance process in the background without requiring user initiation or participation. Sensors trigger the process and the system completes tokenization, retrieval of financial data, and onboarding autonomously, reducing time loss while maintaining security
3Ease of operation
If automated tokenization is implemented, then user convenience is improved by eliminating manual onboarding, but system complexity increases due to sensor integration and automated processes
Solution Approach 1:
The system introduces sensor networks as intermediaries that detect transaction intent and trigger automated tokenization. This intermediary layer bridges the gap between user physical actions and digital token issuance, simplifying the user experience while managing system complexity through a clear event-driven architecture
4Speed
If automated sensor-based tokenization is implemented, then transaction speed is improved by eliminating onboarding steps, but measurement and detection difficulty increases due to user intent recognition
Solution Approach 1:
The system replaces manual user actions with sensor-based detection of physical behaviors (approaching merchant, handling items, approaching checkout). This substitution of mechanical detection for automated sensing enables rapid intent recognition and triggers immediate tokenization, improving transaction speed while managing detection complexity through established sensor technologies
Data Source
AI summary
There are provided systems and methods for automated data tokenization through networked sensors. A network of data sensors may detect that a user is likely to engage in electronic transaction processing with a merchant device, for example, based on an action performed by the user and/or with a user device. One or more of the sensors may connect with the user's device and retrieve financial data from the device and/or data necessary to issue a token to the device for transaction processing. The sensor may perform a background process to issue the token to the device, and once onboarded, may store the token to the user's device and/or the merchant device that the user is likely to interact with for transaction processing. The token may be limited in use by location and/or amount, or may be used to fully onboard the user with the token service provider.