Server-Side Digital Wallet for Mobile Incentive Distribution
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Solution Overview
Problem
Conventional physical and electronic incentives are cumbersome for mobile device users, as they require carrying additional items to redeem rewards, and existing systems lack secure and flexible methods for distributing and redeeming mobile incentives.
Innovation Solution
A computer-server-based system and method for distributing mobile incentives, where a server-side digital wallet manages incentives, allowing users to receive, view, and redeem mobile incentives through their mobile devices, with secure network infrastructure and no sensitive information stored on the device, enabling flexible services like balance transfer and secure purchases.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If physical incentives such as coupons or cards are used, then incentives can be redeemed at merchant locations, but users must remember and carry additional items which is cumbersome and undesirable for mobile device users
Solution Approach 1:
The patent replaces physical incentive cards and coupons with digital representations stored in a mobile device's electronic wallet. The system creates digital copies of incentive values that can be displayed on the mobile device screen, eliminating the need to carry physical cards while maintaining the same redemption functionality at merchant locations.
Solution Approach 2:
The patent substitutes the mechanical system of physical card handling (carrying, remembering, presenting) with an electronic system. The mobile device stores incentive data electronically and communicates it to the merchant's terminal through electronic interfaces, replacing the physical mechanics of card insertion or visual presentation with automated electronic data transfer.
2Ease of operation
If electronic incentives are stored on the mobile device itself, then users can access incentives conveniently, but sensitive information may be exposed to risks of loss or theft
Solution Approach 1:
The patent divides the incentive system into two separate components: the mobile device stores only a reference or display representation of the incentive, while the actual sensitive incentive data and security credentials are stored securely on the merchant's terminal or in a secure remote server. This segmentation ensures that even if the mobile device is lost, the sensitive information remains protected.
Solution Approach 2:
The patent introduces an intermediary secure communication channel between the mobile device and the merchant terminal. The mobile device acts as a mediator that transfers incentive information securely during the transaction process, rather than storing sensitive data locally. This intermediary approach allows convenient access while maintaining security through controlled data transmission.
Data Source
AI summary
A system and method for distributing incentives via mobile devices is described. One embodiment, a computer-server-based method, receives a request from a merchant to generate an incentive which incentive is funded and initiated by the merchant, receives the incentive, associates the incentive with a recipient's phone number, and transmits a notification of the incentive to a mobile device associated with the recipient's phone number, the computer server acting as a server-side wallet for the incentive, the incentive being usable, through interaction with the computer server, by the recipient for the purchase of goods or services from the merchant associated with the incentive.