Staged Payment System for Unbanked Consumer Access
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Solution Overview
Problem
Unbanked consumers face difficulties in making financial transactions due to lack of access to conventional financial institutions, and existing solutions do not fully address their needs for convenient and secure payment methods.
Innovation Solution
A system and method for accepting payments by associating consumers and merchants with a payment provider, allowing payments to be received, stored, and transferred, with features like staging transactions, anonymous enrollment, and guaranteed funds, using a point-of-sale device and payment provider control network.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If unbanked consumers use conventional financial institutions for payments, then transaction security and reliability improve, but accessibility and ease of operation deteriorate due to lack of bank accounts
Solution Approach 1:
The patent introduces a payment provider as an intermediary between consumers and merchants. This payment provider acts as a mediator that accepts payments from consumers without requiring them to have bank accounts, and then transfers funds to merchants. The payment provider system includes enrollment facilities that allow unbanked consumers to register and receive payment instruments, thereby bridging the gap between consumers lacking financial institution access and the payment system requiring such access.
2Reliability
If consumers provide personal information for payment processing, then transaction verification and reliability improve, but consumer comfort and ease of operation deteriorate due to privacy concerns
Solution Approach 1:
The patent segments the payment process into distinct components: consumer enrollment with minimal information, issuance of payment instruments (such as prepaid cards or codes), and transaction processing using these instruments. This segmentation allows consumers to engage in verified transactions without continuously providing personal information. The payment provider holds the verification data separately, enabling reliable transaction processing while maintaining consumer comfort through reduced direct information disclosure.
3Reliability
If merchants wait for payment confirmation before providing goods, then payment reliability improves, but transaction speed and productivity deteriorate
Solution Approach 1:
The patent implements preliminary action by requiring consumers to enroll with the payment provider and obtain payment instruments before making purchases. The payment provider pre-verifies consumer identities and sets up payment accounts in advance. When transactions occur, merchants can immediately process payments using these pre-established instruments without waiting for new verification processes, thereby maintaining reliability while significantly improving transaction speed.
4Adaptability or versatility
If a comprehensive payment system is implemented to serve all consumer types, then adaptability and versatility improve, but system complexity and device complexity worsen
Solution Approach 1:
The patent creates a universal payment provider system that serves multiple consumer types through a single unified platform. The enrollment facilities accommodate various consumer categories (banked, unbanked, those with privacy concerns) using the same basic process. The payment provider issues universal payment instruments that can be used across different merchants and transaction types. This multi-functional approach achieves high adaptability without proportionally increasing system complexity, as the core infrastructure handles diverse needs through standardized interfaces.
Data Source
AI summary
Systems and methods for accepting payments for goods and services provided by a merchant. In one embodiment, a method for accepting payments from a consumer for a good or service provided by a merchant comprises receiving a transaction request from the merchant, receiving a payment from the consumer, associating the payment with the transaction request, and sending at least a portion of the payment to the merchant. In this manner, the merchant stages the transaction, and the consumer completes the transaction by making the payment. An optional time limit feature also may be used, and the transaction may be staged by the consumer, or others.