Unified Payment Interface Virtual Address Interbank Routing
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Solution Overview
Problem
Current electronic payment systems are complex and not user-friendly, requiring knowledge of bank account details and mobile phone numbers, leading to dependency on bank web portals and limited interoperability between different banking systems.
Innovation Solution
An electronic payment system utilizing a Unified Payment Interface (UPI) that allows users to create a virtual payment address (VPA) for transactions, enabling payments between users without needing each other's bank information, and facilitating interoperability through a network of Payment Service Provider Systems (PSPS) and user devices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If bank web portals and mobile banking applications are used for electronic payments, then payment transactions can be carried out, but the system becomes complex and not user-friendly
Solution Approach 1:
The patent introduces a Unified Payments Interface (UPI) as an intermediary layer between the payer's bank and the payee's bank. This UPI interface simplifies the complex banking interactions into a single, user-friendly portal where users can initiate payments without needing to navigate through multiple bank-specific web portals or applications. The UPI handles the complexity of inter-bank communications, account validations, and transaction routing in the background.
Solution Approach 2:
The patent creates a universal payment interface that works across multiple banking systems and payment service providers. Instead of requiring users to have separate banking applications or web portals for each bank, the UPI provides a single unified interface that can initiate and track payments across different banks, making the system universally applicable and significantly more user-friendly.
2Reliability
If payee's bank account details and mobile phone number are required for payments, then payment can be made, but the payer becomes dependent on knowing and tracking these details
Solution Approach 1:
The UPI acts as an intermediary that manages the complexity of storing and validating payee information. Instead of requiring the payer to manually track and update payee's bank account details and mobile numbers, the UPI system automatically handles information validation, format checking, and routing. The system mediates between the payer's simple input and the complex requirements of the banking system.
Solution Approach 2:
The patent implements preliminary validation and standardization of payee information at the point of entry through the UPI interface. Before a payment is initiated, the system pre-validates the payee's account details, mobile number format, and bank routing information. This preliminary action ensures that the information is correct and up-to-date before the actual payment process begins, eliminating the need for the payer to continuously track and update these details.
3Reliability
If traditional banking interfaces are used for payments, then transactions can be processed, but authorization steps are numerous and time-consuming
Solution Approach 1:
The patent merges multiple authorization steps into a single streamlined process through the UPI interface. Instead of requiring separate authorizations for account validation, routing verification, and payment approval at different banking levels, the UPI consolidates these authorization steps into one unified process. The user provides authentication credentials once at the UPI interface, and the system handles all subsequent authorizations automatically in the background.
Solution Approach 2:
The UPI system maintains continuous automated authorization processes in the background after the initial user authentication. Once the user authorizes a payment at the UPI interface, the system continuously handles account debits, inter-bank transfers, and confirmations without requiring additional user actions. This continuous automated processing significantly reduces the time lost to multiple manual authorization steps.
4Adaptability or versatility
If different bank web portals are used for different banking functions, then comprehensive banking services are available, but the system lacks interoperability and requires dependency on specific bank portals
Solution Approach 1:
The UPI creates a universal interface that provides access to comprehensive banking services across multiple banks and payment service providers. Through this single interface, users can initiate payments, check transaction status, and access various payment-related functions regardless of which bank or payment provider is involved. This universal access eliminates the need to switch between different bank-specific web portals while maintaining full service capability.
Solution Approach 2:
The patent segments the complex banking system into distinct functional layers: the user-facing UPI interface layer, the payment service provider layer, and the individual bank layers. This segmentation allows the UPI to handle user interactions and coordinate between different banks without requiring users to directly interface with each bank's complex systems. Each layer handles its specific functions independently, improving overall system interoperability while maintaining service comprehensiveness.
Data Source
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AI summary
The present disclosure envisages an electronic payment system and method. This disclosure relates to the field of electronic payment systems. The electronic payment system facilitates sending and receiving money in a simpler manner using user devices. It provides a unified payments interface (UPI) and enables users to push and pull/collect payments from accounts of concerned persons/entities. The system of the present disclosure enables payment transactions between a payer and a payee without mandatorily needing bank information and bank account details of each other. It eliminates the risk of storing customer's account details and can be used by customers which do not have credit/debit cards. It provides payment transaction privacy and facilitates multiple utility, cash on delivery, bill splitting/sharing, merchant payments/remittances. The electronic payment system of the present disclosure works across various interfaces, where payment requests can be generated on a web interface and authorized on a mobile interface (application tool).