Tokenized Gift Card System for Location-Activated Redemption
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional gift cards require upfront payment and may not be redeemable at specific merchants, limiting the gifter's ability to provide a customized, location-activated gift that can be used immediately by the recipient.
Innovation Solution
A system and method that generate a tokenized primary account number associated with a gifter's financial account, allowing for location-activated gift redemption at designated merchants without requiring the gifter to spend money until the gift is redeemed, enabling customized conditions such as maximum gift amount, redemption locations, and time constraints.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If conventional gift cards are used, then the gifter can provide a financial gift, but the gifter must spend money to obtain the card before the recipient can use it
Solution Approach 1:
The system pre-configures gift parameters (maximum amount, eligible merchants, expiration date) and creates a tokenized representation of the gift before any money changes hands. The gifter's account is monitored for transactions matching these parameters, and only then is the gift activated and funds transferred. This preliminary setup eliminates the need for upfront payment while ensuring gift reliability.
2Ease of operation
If conventional gift cards are used, then the gift can be transferred to the recipient, but the recipient may lose possession or spend only a portion of the value
Solution Approach 1:
The system continuously monitors transactions made with the tokenized gift representation. When a transaction occurs at an eligible merchant within the maximum amount and before expiration, the system automatically activates the gift and transfers the exact transaction amount from the gifter's account to cover the purchase. This feedback loop ensures the gifter pays only for actual usage, eliminating value loss from unused portions.
3Adaptability or versatility
If conventional gift cards are used, then the gift can be customized for a particular merchant, but the gifter must hunt down the specific gift card
Solution Approach 1:
The system creates a universal tokenized representation that can be configured for any merchant or merchant category. The gifter specifies desired parameters (maximum amount, eligible merchants, expiration), and the system generates a single flexible gift instrument that adapts to various redemption scenarios. This eliminates the need to search for specific merchant gift cards while maintaining full customization capability.
4Ease of operation
If conventional gift cards are used, then the recipient can decide when and where to redeem, but the gifter cannot include an element of surprise
Solution Approach 1:
The system pre-configures the gift with specific parameters (maximum amount, eligible merchants, expiration date) and monitors for matching transactions before activation. The recipient receives a tokenized representation that appears to be a general-purpose payment instrument, but the gifter has already predetermined the redemption conditions. When a qualifying transaction occurs, the gift activates automatically, creating surprise while maintaining recipient flexibility within constraints.
Data Source
AI summary
A method for providing a gift includes receiving gift information from a first computing device. The gift information includes a maximum gift amount, a gift recipient, and a gifter financial account and gift redemption information. The method includes generating a tokenized PAN associated with the gifter financial account, identifying a second computing device associated with the gift recipient, determining one or more gift redemption locations and receiving gift recipient location data. The method includes determining that the second computing device has entered a gift-eligible location based on the gift recipient location data and the one or more redemption locations and transmitting data indicative of a gift for display by the second computing device. The method further includes outputting an instruction to debit the gifter financial account with an amount of money in response to determining that a transaction has been executed using the tokenized PAN at the gift-eligible location.