Virtual Payment Card Reward Linking for Automatic Offer Redemption
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Solution Overview
Problem
Existing reward programs and promotional offers are not customized to individual customer interests, making it difficult for customers to effectively utilize them, and integrating merchant offers with payment methods is inefficient, requiring manual effort and memory, which limits their effectiveness.
Innovation Solution
A payment service uses machine-learning models to personalize reward offers based on user data, automatically redeeming them during transactions through a virtual payment card interface, enhancing user experience and efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If traditional communication methods are used to communicate reward programs, then information can be delivered to customers, but the information is not customized to individual customer interests and requires manual customer action
Solution Approach 1:
The system automatically performs customer service functions by monitoring transaction data, identifying applicable reward offers, and applying them without requiring customer action. The payment system itself serves the customer by autonomously matching transactions with relevant offers and executing redemptions.
Solution Approach 2:
The system pre-configures reward offers and criteria before transactions occur. By analyzing historical transaction data and customer profiles in advance, the system prepares personalized offer sets that are ready for automatic application when qualifying transactions occur.
2Adaptability or versatility
If manual integration of merchant offers with payment methods is used, then offers can be connected to payment cards, but the process is complex and inefficient
Solution Approach 1:
The system merges the offer management functionality directly into the payment processing system. By combining merchant offer databases with transaction processing capabilities, the system eliminates separate integration steps and enables automatic matching of offers with qualifying transactions through unified data analysis.
Solution Approach 2:
The payment system is designed to handle multiple functions simultaneously: processing payments, analyzing transaction data, matching with reward offers, and executing redemptions. This multi-functional approach allows a single system to manage diverse merchant offers across different payment methods without requiring separate integration processes for each.
3Productivity
If customers use traditional methods to redeem rewards, then rewards can be applied, but it requires good memory and affirmative activities which involve delay
Solution Approach 1:
The system automatically monitors transactions and applies eligible reward offers without requiring customer initiation or remembrance. The payment system itself performs the redemption function by detecting qualifying transactions and automatically applying pre-configured offers.
Solution Approach 2:
The system provides immediate feedback to customers about applied rewards through transaction receipts and account statements. This real-time feedback mechanism confirms reward application without requiring separate verification actions from customers.
Data Source
AI summary
Systems and methods for electronic reward offer management are disclosed. For instance, a system identifies, using a machine learning model, reward offer(s) for a user of a payment service. The system sends, to a client device of the user, a request to display the reward offer(s) together with a virtual payment card (associated with a payment account issued by the payment service to the user) in a user interface of an application for the payment service. The system receives, from the client device, a user input indicating assignment of a selected reward offer to the payment account, and updates data store(s) to include information associated with a connection between the payment account and the selected reward offer. The connection authorizes automatic redemption of the selected reward offer upon receiving a payment authorization request for a subsequent transaction using a payment card issued to the user by the payment service.