Software Payment Terminal With HTE for Secure NFC Transactions
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Solution Overview
Problem
Existing payment terminals are vulnerable to security breaches, requiring costly and time-consuming replacements due to shared hardware designs, and lack efficient mechanisms for secure data transmission and user-friendly NFC interactions.
Innovation Solution
An application-based payment terminal on an electronic device, utilizing Host Terminal Emulation (HTE) to securely process NFC transactions without secure hardware, with continuous monitoring by a local and server risk engine to prevent data extraction and enhanced user input security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional payment terminals with secure hardware are used, then security is improved, but cost and device complexity increase
Solution Approach 1:
The patent uses Host Terminal Emulation (HTE) to create a software-based copy of the payment terminal functionality on a mobile device. Instead of using physical secure hardware, the system emulates the terminal's card acceptance and transaction processing capabilities through software, achieving security without the complexity of dedicated secure hardware components
Solution Approach 2:
The invention replaces the mechanical/physical secure hardware system with an electronic software-based system. The mobile device's processor and memory execute payment terminal applications that perform encryption, card communication, and transaction processing, substituting physical security mechanisms with computational ones
2Reliability
If physical replacement of compromised terminals is performed, then security is improved, but loss of time and loss of substance increase
Solution Approach 1:
The patent segments the payment terminal functionality into separate software modules that can be independently updated. The HTE application and its associated security components can be individually replaced or updated without affecting the entire system, allowing rapid response to security issues without replacing all terminals
Solution Approach 2:
The system enables dynamic updates to the payment terminal software through over-the-air updates. Instead of static hardware that must be physically replaced, the software components can be dynamically updated to patch security vulnerabilities, reducing both time and resource losses
3Reliability
If manual authentication process is used, then security is improved, but ease of operation deteriorates
Solution Approach 1:
The patent implements self-service authentication where the mobile device automatically performs security checks and authentication without requiring manual intervention. The system autonomously verifies device security status, manages encryption keys, and processes transactions, eliminating the need for manual authentication procedures while maintaining security
Data Source
AI summary
The present disclosure is drawn to, among other things, a method of providing a payment terminal application on an electronic device, the electronic device comprising a volatile storage module, a user input module and a network interface module. In some aspects the method includes receiving user credentials from the user input module, transmitting an authentication request message to a remote data center via the network interface module, the authentication request message including the user credentials, receiving an authentication response message from the remote data center, the authentication response message including an indication as to whether authentication was successful, and if the authentication was successful, receiving at least one encryption key from the remote data center; and storing the at least one encryption key in the volatile storage module.