Tokenized Payment Splitting for Marketplace Transactions
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Solution Overview
Problem
Existing electronic payment systems face difficulties in handling split payments to multiple entities during a single transaction, particularly in online marketplaces where merchants need to pay both the payment provider and a partner service, making it complex to manage and transparent for users.
Innovation Solution
A method utilizing tokenized data and split payment instructions within a payment provider system, where the payment provider processes payments from users to merchants and automatically deducts a split fee from the merchant's account for the partner service, ensuring seamless and transparent transactions by hiding the split fee from the user's account statement.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If the payment provider processes split payments to multiple entities during a single transaction, then the functionality and versatility of the payment system is improved, but the device complexity and difficulty of managing the transaction process increases
Solution Approach 1:
The payment transaction is segmented into multiple independent payment requests, each directed to a different entity (merchant, partner service). Each segment is processed separately through the payment provider system, allowing complex split payments to be broken down into manageable units that can be handled independently while maintaining overall transaction integrity
Solution Approach 2:
The payment provider system acts as an intermediary between the user, merchant, and partner service. It receives the initial payment request, automatically generates and processes additional payment requests to the partner service based on predetermined fee structures, and coordinates the settlement of all parties without requiring direct interaction between them
2Ease of operation
If the payment provider automatically deducts split fees from the merchant's account, then the ease of operation is improved, but the loss of information transparency increases
Solution Approach 1:
The fee structure between the merchant and partner service is predetermined and agreed upon before the transaction occurs. The payment provider system has pre-configured the split payment terms, allowing it to automatically deduct fees without requiring real-time negotiation or complex calculations during the actual transaction processing
Solution Approach 2:
The payment provider creates a copy of the original payment request and modifies it to direct funds to the partner service. This copied and modified payment request contains the fee information, allowing the system to process the deduction while maintaining a record of the fee structure for future reference and reconciliation
Data Source
AI summary
There are provided systems and methods for tokenized data having split payment instruction for multiple accounts in a chain transaction. A user may provide a payment to a merchant that sells one or more items to the user. In order to sell items, the merchant may utilize a partner service that provides resources for the merchant to sell the items, such as an online marketplace. The partner service may require a payment for each transaction by the merchant using the partner service. Thus, when a payment request is generated to the merchant for items sold to the user, the partner service may attach to the payment request and provide a split payment request for a split payment from the payment request. The payment between the user and merchant may be processed, and a separate transaction may provide the split payment automatically to the partner service from the merchant.