USSD-Based Payment Verification System
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Solution Overview
Problem
Current payment systems face challenges due to lack of unity between structural components, leading to delayed transaction settlement, cumbersome user experiences, high interchange fees, inconsistent security across channels, and dispersed data management, which limits their scope and security.
Innovation Solution
A cross-channel, identity-based payment system incorporating a pay-by-bank architecture with a secure cloud-based identifier repository and unique authentication methods using USSD rail telecom signals, enabling universal deployment and secure data management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If current payment methods are used, then transactions can be processed through multiple channels, but transaction settlement is delayed and uncertainty increases for merchants
Solution Approach 1:
The system segments the payment verification process into multiple independent verification steps across different data sources and channels. Each verification step checks specific aspects of the transaction independently, allowing parallel processing that accelerates settlement while maintaining high certainty through cumulative verification results.
Solution Approach 2:
The payment verification system is designed as a universal multi-channel platform that can verify transactions across diverse payment methods (card payments, mobile wallets, ACH transfers) through a single unified verification process, eliminating channel-specific delays and providing consistent settlement certainty across all payment types.
2Productivity
If manual card detail input is required, then payment processing can be completed, but user experience becomes cumbersome and time-intensive
Solution Approach 1:
The system performs preliminary actions by pre-collecting and storing payment information through alternative methods (mobile device data, bank account information) before the actual transaction occurs. This eliminates the need for manual card detail input at the point of sale, significantly improving both processing efficiency and user convenience.
Solution Approach 2:
The system enables self-service by allowing users to register their payment information once through secure verification, after which the system automatically retrieves and uses this information for future transactions without requiring manual re-entry. The mobile device itself serves as the verification instrument, eliminating manual input requirements.
3Productivity
If existing payment components are used, then transactions can be processed, but expensive interchange fees are charged to merchants
Solution Approach 1:
The system introduces an intermediary verification layer that operates independently of traditional card network intermediaries. By using alternative verification methods (mobile device verification, bank account verification) that bypass conventional card processing networks, the system enables transaction processing while avoiding expensive interchange fees associated with traditional card payments.
4Reliability
If traditional security methods are used, then authentication can be performed, but user experience is inconsistent across different payment channels
Solution Approach 1:
The system implements a universal authentication mechanism that functions consistently across all payment channels (in-person, online, mobile). The same verification process using mobile device data and biometric authentication is applied regardless of the payment channel, providing both high security and consistent user experience across all platforms.
5Loss of information
If data is stored in dispersed sources, then information is available, but users must continuously input details and security control is compromised
Solution Approach 1:
The system merges dispersed data sources into a unified verification framework. User payment information, biometric data, and transaction history are consolidated and verified through a single centralized system that securely accesses this combined data, eliminating the need for users to repeatedly input the same details across different channels while maintaining comprehensive data availability.
6Reliability
If data security requirements are increased, then data protection is enhanced, but data access and processing become more restricted
Solution Approach 1:
The system introduces a secure intermediary verification layer that mediates between data security requirements and data usage needs. This intermediary layer verifies user identity and authorization before accessing any stored data, ensuring that data protection requirements are met while still allowing flexible data access and processing for legitimate transaction purposes through proper authentication.
Data Source
AI summary
A method for harnessing a connected network to securely verify and execute a transaction is provided. The method may include requesting a PIN from a mobile device. The request may be transmitted via a USSD message. The method may also include receiving the PIN from the mobile device. The PIN may be received via a response to the USSD message. The method may also include authenticating the mobile device. The method may also include accessing a third-party network to verify an authentication status of the mobile device. The third-party network may include a plurality of IoT endpoints. Each IoT endpoint may include a stored verification usage process. The stored verification usage process may relate to a user associated with the mobile device. The method may also include executing the transaction upon receipt of an authentication signal from the third-party network.