Temporary Short-Code Pairing for Secure Mobile Loyalty Payments
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Solution Overview
Problem
Existing mobile loyalty and payment systems require additional hardware, are prone to obsolescence, and pose security and convenience issues due to reliance on QR codes and customer phone numbers, leading to inefficient and insecure transactions.
Innovation Solution
A mobile loyalty and payment system using temporary short codes, integrated with geolocation information, that enables secure and convenient transactions without additional hardware, allowing customers to use a single application for both loyalty programs and payment options, with rewards and coupons managed by a loyalty server.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If merchants use QR code scanners to enable payment, then payment options are expanded, but hardware complexity and obsolescence risk increase
Solution Approach 1:
The patent extracts the payment functionality from physical hardware (QR scanners, gift cards) and relocates it to a mobile device-based system. Customers use their smartphones to receive and scan temporary codes via a loyalty application, eliminating the need for merchants to purchase and maintain scanning hardware while preserving payment capability.
Solution Approach 2:
The patent replaces mechanical barcode scanning systems with a digital mobile application-based system. Instead of physical QR code scanners and magnetic stripe cards, the system uses mobile devices with cameras and processors to generate, display, and verify temporary codes, substituting mechanical hardware with software-based solutions.
2Ease of operation
If customers provide their personal telephone number to the merchant, then transaction identification is simplified, but security and privacy risks increase
Solution Approach 1:
The patent introduces temporary codes as an intermediary between the customer and the merchant. Instead of directly sharing personal information like phone numbers, customers receive a temporary code through the loyalty application that serves as a secure intermediary for transaction identification. The code is time-limited and cannot be reused, reducing security risks while maintaining ease of operation.
3Reliability
If customers carry physical cards with account numbers, then payment access is provided, but convenience is reduced due to loss or wear
Solution Approach 1:
The patent creates a digital copy of the payment card functionality within the mobile device. Instead of carrying a physical card that can be lost or have its magnetic strip wear down, customers use a loyalty application on their smartphone that generates temporary codes. This digital copy is stored securely in the device's memory and can be regenerated if needed, eliminating the inconvenience of physical card maintenance.
Solution Approach 2:
The patent transitions from static physical cards to dynamic temporary codes. The temporary codes are generated on-demand through the loyalty application, are time-limited, and cannot be reused. This dynamic approach provides payment access without the permanence requirements of physical cards, improving convenience while maintaining reliability.
4Adaptability or versatility
If merchants invest in additional hardware for loyalty programs, then customer interaction is enhanced, but maintenance problems and obsolescence waste increase
Solution Approach 1:
The patent enables customers to perform self-service operations through the loyalty application on their mobile devices. Customers can view their loyalty status, access rewards, and complete transactions independently without requiring merchant hardware intervention. This self-service approach enhances customer interaction while eliminating the need for merchants to maintain additional hardware systems.
Data Source
AI summary
A loyalty server enables customers to use a merchant's mobile loyalty and payment program by pairing a customer's loyalty account through use of temporary codes. A customer may login to the customer's loyalty and payment account using a loyalty application installed on a mobile device. The customer can request a temporary code from the loyalty server, and provide it to a POS system associated with a merchant. The POS system can send a request to the loyalty server to retrieve customer information corresponding to the temporary code. The POS system can receive the customer's information, and the customer then earns rewards for transactions conducted with the merchant. In some embodiments, the POS system conducts a transaction using rewards or coupons. In some embodiments, the loyalty server obtains and utilizes the geolocation of the mobile device and the merchant as a portion of the means for pairing.