Transaction Identifier Payment System for Unbanked Consumers
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Solution Overview
Problem
Approximately 70 to 95 million unbanked and underserved individuals in the U.S. lack a mechanism to conveniently pay for online and phone purchases, one-time or reoccurring bills, and reload stored value cards, as they do not have credit cards or bank accounts, and merchants face challenges in accommodating these consumers for cash transactions.
Innovation Solution
A system and method that enables unbanked consumers to initiate transactions through a central processing unit, generating a unique transaction identifier for payment at various locations such as kiosks or point-of-sale terminals, allowing cash payments or using stored value cards, and remits funds to merchants in real-time or batch processing.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If merchants use traditional payment systems requiring credit cards or bank accounts, then transaction security and verification are improved, but accessibility for unbanked consumers deteriorates
Solution Approach 1:
The patent introduces a payment processing unit as an intermediary between the consumer and merchant. This unit accepts cash payments from unbanked consumers, generates unique transaction identifiers, and facilitates settlement through the central processing unit. The intermediary enables cash-based consumers to participate in electronic payment systems without requiring traditional banking infrastructure.
Solution Approach 2:
The system creates a universal payment platform that accommodates multiple consumer types (banked and unbanked) and multiple payment methods (electronic cards, cash, stored value cards). The payment processing unit serves multiple functions: accepting cash, generating transaction identifiers, validating payments, and enabling settlements across different merchant-consumer scenarios.
2Adaptability or versatility
If merchants implement cash payment accommodation processes, then consumer inclusivity is improved, but operational complexity and costs increase
Solution Approach 1:
The payment processing unit operates as an automated self-service system that accepts cash payments, generates unique transaction identifiers, and processes settlements without requiring manual intervention from merchant staff. The system automatically validates payments through the central processing unit and handles fund remittance, reducing operational complexity for merchants.
Solution Approach 2:
The patent segments the payment processing function into distinct components: the payment processing unit at the merchant location, the central processing unit for validation and settlement, and the fund remittance system. This segmentation allows each component to perform its specific function independently, simplifying the overall system architecture and reducing operational complexity.
3Productivity
If real-time payment processing is implemented, then consumer convenience and transaction speed are improved, but system infrastructure requirements and costs increase
Solution Approach 1:
The system dynamically adapts payment processing timing based on transaction type and merchant needs. While the payment processing unit can operate in real-time mode for immediate processing, it also supports batch processing capabilities through the central processing unit. This dynamic flexibility allows merchants to choose processing speeds appropriate for their operational requirements without mandating expensive real-time infrastructure for all transactions.
Data Source
AI summary
A system and method is provided to accept and settle transaction payments for a consumer. The consumer initiates a transaction with a merchant, and the merchant transmits transaction information to a central processing unit using an initiating processing unit. The central processing unit generates a unique transaction identifier. The system may provide the merchant and consumer the nearest payment processing unit. At the payment processing unit, the consumer presents the unique transaction identifier, which is transmitted to the central processing unit for validation. The consumer makes payment at the payment processing unit, and the payment information is transmitted to the central processing unit. The system remits the payment to the merchant.